Illicit Trade and the Korean Economy

Annex D. Processed data used for figures

Table A D.1. Gross domestic spending on R&D as % of GDP, 2019

Country	Gross domestic spending on R&D as % of GDP, 2020	Country	Gross domestic spending on R&D as % of GDP, 2020
Israel	5.818450065	Estonia	1.753154594
Korea	4.795714434	Portugal	1.613919079
Chinese Taipei	3.609330831	Hungary	1.593150011
Sweden	3.489603532	Greece	1.511492166
United States	3.424671539	Italy	1.506601094
Belgium	3.390186864	Spain	1.409102689
Japan	3.264575825	Poland	1.386083638
Austria	3.202780153	Türkiye	1.367479378
Germany	3.131357981	Croatia	1.239707408
Denmark	2.972581601	Ireland	1.145508756
United Kingdom	2.938829666	Lithuania	1.132608921
Finland	2.912434149	Russia	1.098029538
OECD	2.721509041	Luxembourg	1.095841972
Iceland	2.493801972	Slovak Republic	0.897785228
China	2.406660076	Bulgaria	0.84967167
Netherlands	2.321820898	Latvia	0.73438821
France	2.274637313	South Africa	0.602397462
Norway	2.244362754	Argentina	0.5415428
Singapore	2.163049792	Romania	0.465375303
Slovenia	2.141555207	Chile	0.33496348
Czechia	1.985985354	Costa Rica	0.33002157
Canada	1.934135455	Colombia	0.289402604

Source: OECD calculations.

Table A D.2. Resident patent applications per USD 100 billion GDP for the top 10 origins, 2022

Origin	2022
Korea	7827.7
China	5702.3
Japan	4199.6
Switzerland	1645.1
Germany	1374.2
Finland	1270.2
Sweden	1189.8
United States	1170
Denmark	1053.5
Netherlands	835
Austria	804.3
France	777.3
Iran (Islamic Republic of)	609.9
Luxembourg	599.8
United Kingdom	538.1
Belgium	528.9
Italy	516.4
Russia	482.1
Norway	412.9
Iceland	404.4

Source: WIPO Statistics Database and World Bank.

Table A D.3. Resident patent applications per million persons for the top 10 patent countries, 2021

Origin	2022
Korea	3559.1
Japan	1748.8
Switzerland	1168
China	1037.1
United States	757.1
Germany	736
Sweden	652.2
Finland	629.8
Denmark	629
Netherlands	489.2
Austria	452.6
France	357.7
Singapore	303
Belgium	281.2
Norway	278.5
United Kingdom	252
Italy	226.1
Israel	159.9
Russian Federation	135.2
Canada	117.2

Source: WIPO Statistics Database and World Bank.

Table A D.4. GVC participation among countries, 2019

Country	Forward participation	Backward participation	Total participation
Luxembourg	11.6667	65.4836	77.1503
Slovak Republic	18.5972	48.6451	67.2423
Hungary	16.9951	47.2498	64.2449
Czech Republic	19.5967	41.7888	61.3855
Ireland	13.0205	46.6488	59.6693
Belgium	22.9661	35.8893	58.8554
Norway	38.8523	18.0249	56.8772
Slovenia	20.5137	35.9219	56.4356
Netherlands	23.3974	32.6206	56.018
Austria	23.5872	32.302	55.8892
Estonia	20.2188	35.2401	55.4589
Lithuania	22.1244	32.4092	54.5336
Korea	21.5951	32.6929	54.288
Finland	23.0589	30.6103	53.6692
Poland	22.7317	30.0684	52.8001
Greece	14.81	36.3049	51.1149
Denmark	17.4412	33.0758	50.517
Sweden	22.6152	26.2019	48.8171
Iceland	18.7518	28.7292	47.481
Latvia	22.9621	24.3836	47.3457
Germany	23.7397	23.5861	47.3258
Portugal	16.1779	31.0265	47.2044
France	21.6946	23.7889	45.4835
Mexico	10.4916	34.8632	45.3548
Chile	28.209	15.9413	44.1503
Spain	19.0002	24.2157	43.2159
Italy	20.0958	22.8399	42.9357
United Kingdom	24.3074	17.3811	41.6885
Switzerland	18.3953	22.9378	41.3331
Türkiye	19.5001	21.0888	40.5889
Japan	26.0969	13.7333	39.8302
Canada	14.7392	24.7906	39.5298
Israel	20.1909	16.7608	36.9517
Australia	25.549	10.935	36.484
United States	26.7013	9.018	35.7193
Colombia	21.4677	12.5478	34.0155
Costa Rica	11.8131	18.039	29.8521
OECD	20.2223	8.25	28.4723
New Zealand	13.0722	14.0868	27.159

Source: OECD TiVA (Trade in Value Added) database, Principal Indicators Data extracted on 15 August 2023.

Table A D.5. Top provenance economies for counterfeit goods that infringe on Korean IPR holders, 2011-2019

Provenance	Share of seized value	Share of number of customs seizures
Iraq	0.0000923	0.0008368
Sweden	0.0000922	0.0010042
Korea	0.0021349	0.0016736
United States	0.0004601	0.0017573
Switzerland	0.0012375	0.001841
Germany	0.0446117	0.0032636
Morocco	0.0014269	0.0035146
Thailand	0.0005576	0.003682
Türkiye	0.0020806	0.0043515
Netherlands	0.000388	0.0062762
United Arab Emirates	0.0324548	0.010795
Malaysia	0.0504911	0.0268619
Singapore	0.0109065	0.1249372
China	0.3772189	0.3546444
Hong Kong (China)	0.4354143	0.4389121

Source: OECD calculations.

Table A D.6. Top provenance economies for counterfeit goods that infringe on Korean IPR holders, by time period

Provenance	Share of seized value	Share of number of customs seizures	Provenance	Share of seized value	Share of number of customs seizures	Provenance	Share of seized value	Share of number of customs seizures
2011-13			2014-16			2017-19
Pakistan	0.0000214	0.0009643	Sweden	0.0000867	0.0010596	India	0.0539696	0.0014065
Qatar	0.0106973	0.0016072	Venezuela	0.0001537	0.0010596	Lebanon	0.0001939	0.0018753
Malaysia	0.0001865	0.0016072	United States	0.0000875	0.0010596	United Kingdom	0.0001209	0.0018753
Iraq	0.0001197	0.0019286	United Kingdom	0.0022481	0.0010596	Iran	0.0008993	0.0018753
United States	0.0002225	0.0022501	Russia	0.0001684	0.0013245	Korea	0.0030636	0.0018753
Korea	0.0041104	0.002893	Thailand	0.0001668	0.0013245	Russia	0.000744	0.0018753
Switzerland	0.0002434	0.0032144	Honduras	0.0002011	0.0018543	Switzerland	0.0001813	0.0018753
Morocco	0.0008344	0.0038573	Morocco	0.0009332	0.0031788	Netherlands	0.0002395	0.0023441
Germany	0.1158121	0.0041787	Türkiye	0.0003536	0.0042384	Malaysia	0.0009471	0.0056259
Thailand	0.0011244	0.005143	Malaysia	0.0944097	0.0116556	Germany	0.0015569	0.0098453
Türkiye	0.0013767	0.0061074	United Arab Emirates	0.0710457	0.0129801	United Arab Emirates	0.0632493	0.0140647
United Arab Emirates	0.0074169	0.0122147	Netherlands	0.0013171	0.0161589	Türkiye	0.0085727	0.01594
Singapore	0.0046949	0.0784314	Singapore	0.0240297	0.1311258	Singapore	0.0054116	0.0703235
China	0.4131294	0.3548698	China	0.2229393	0.3541722	China	0.4001252	0.4097515
Hong Kong (China)	0.4326239	0.5078753	Hong Kong (China)	0.5577698	0.4468874	Hong Kong (China)	0.4527118	0.4421003

Source: OECD calculations.

Table A D.7. Top provenance economies for counterfeit goods that infringe on Korean IPR holders, 2020-2021

Provenance	Share of seized value	Share of number of customs seizures
Malaysia	1%	0%
Greece	2%	0%
Egypt	0%	0%
Bahrain	0%	0%
Argentina	0%	0%
Hungary	0%	0%
Korea	0%	1%
Spain	0%	1%
Türkiye	0%	1%
Chinese Taipeï	0%	1%
United Kingdom	0%	1%
Singapore	0%	2%
United Arab Emirates	2%	2%
United States	4%	3%
China	16%	17%
Hong Kong (China)	75%	69%

Source: OECD calculations.

Table A D.8. Top destination economies for seized goods that infringe on Korean IPRs, 2020-2021

Destination	Share of seized value	Share of number of customs seizures	Destination	Share of seized value	Share of number of customs seizures
Kosovo	0%	0%	Belgium	0%	0%
Serbia	0%	0%	Jordan	0%	1%
Belarus	0%	0%	Cyprus	0%	1%
Lithuania	0%	0%	Tunisia	0%	1%
Greece	0%	0%	Romania	0%	1%
Brazil	0%	0%	Portugal	0%	1%
El Salvador	0%	0%	Algeria	1%	1%
Denmark	0%	0%	Puerto Rico	0%	1%
South Africa	0%	0%	Austria	0%	1%
Guatemala	0%	0%	Albania	1%	2%
Slovenia	0%	0%	Poland	23%	2%
Saudi Arabia	0%	0%	France	0%	2%
Paraguay	0%	0%	Morocco	4%	2%
Hungary	0%	0%	Italy	2%	3%
Canada	0%	0%	Netherlands	2%	3%
Ireland	0%	0%	Mexico	0%	3%
Czechia	0%	0%	Germany	7%	4%
Dominican Republic	0%	0%	Spain	5%	9%
Former Yugoslav Republic of Macedonia	0%	0%	United Kingdom	21%	13%
Bulgaria	1%	0%	United States	23%	46%
Argentina	8%	0%

Source: OECD calculations.

Table A D.9. Top product categories for counterfeit goods violating Korean IPRs, 2011-2019

Product category	Share of seized value	Share of number of customs seizures
Toys and games (95)	0.0062606	0.0018822
Footwear (64)	0.0016948	0.0019575
Clothing, knitted or crocheted (61)	0.001358	0.0021081
Vehicles (87)	0.0027823	0.0034633
Articles of leather; handbags (42)	0.0026475	0.0073031
Machinery and mechanical appliances (84)	0.0524181	0.0303418
Electrical machinery and electronics (85)	0.919493	0.9465442

Source: OECD calculations.

Table A D.10. Top product categories for counterfeit goods violating Korean IPRs, excluding seizures of electronic appliances, 2011-2019

Product category	Share of seized value	Share of number of customs seizures
Miscellaneous articles of base metal (83)	0.000726724	0.005633803
Clothing and accessories, not knitted or crocheted (62/65)	0.001027952	0.005633803
Printed articles (49)	0.000143141	0.008450704
Plastic and articles thereof (39)	0.000610194	0.008450704
Tanning or dyeing extracts (32)	0.006217683	0.009859155
Optical; photographic; medical apparatus (90)	0.000532276	0.011267606
Watches (91)	0.002830937	0.012676056
Perfumery and cosmetics (33)	0.001083082	0.012676056
Label	0.003852263	0.015492958
Packaging	0.001055542	0.018309859
Toys and games (95)	0.077764268	0.035211268
Footwear (64)	0.021051882	0.036619718
Clothing, knitted or crocheted (61)	0.016867973	0.03943662
Vehicles (87)	0.034559707	0.064788732
Articles of leather; handbags (42)	0.032885261	0.136619718
Machinery and mechanical appliances (84)	0.651100852	0.567605634

Source: OECD calculations.

Table A D.11. Top product categories for counterfeit goods that violate Korean IPRs, 2020-2021

Product category	Share of seized value	Share of number of customs seizures
Watches (91)	1%	0%
Vehicles (87)	0%	3%
Toys and games (95)	8%	5%
Miscellaneous manufactured articles (66/67/96)	1%	6%
Perfumery and cosmetics (33)	10%	15%
Other made-up textile articles (63)	11%	20%
Electrical machinery and electronics (85)	68%	51%

Source: OECD calculations.

Table A D.12. Conveyance methods for counterfeit products that infringe on Korean IPR holders, 2011-19

In terms of seize value		In terms of customs seizures
Conveyance method	Share of counterfeit products	Conveyance method	Share of counterfeit products
Air	44%	Air	30%
Express courier	17%	Express courier	22%
Mail	15%	Mail	43%
Other	0%	Other	0%
Rail	0%	Rail	0%
Road	5%	Road	1%
Sea	19%	Sea	4%

Source: OECD calculations.

Table A D.13. Conveyance methods for counterfeit products that infringe on Korean IPR holders, by time period

In terms of number of seizures		In terms of seized value	In terms of seized value
Conveyance method	Share of counterfeit products	Conveyance method	Share of counterfeit products
2011-2013
Air	37%	Air	45%
Express courier	11%	Express courier	5%
Mail	46%	Mail	22%
Other	0%	Other	0%
Road	2%	Road	2%
Sea	4%	Sea	26%
2014-2016
Air	25%	Air	41%
Express courier	24%	Express courier	25%
Mail	44%	Mail	11%
Other	1%	Other	9%
Road	6%	Road	14%
Sea	25%	Sea	41%
2017-2019
Air	27%	Air	47%
Express courier	36%	Express courier	22%
Mail	34%	Mail	13%
Other	1%	Other	1%
Road	2%	Road	17%
Sea	27%	Sea	47%

Source: OECD calculations.

Table A D.14. Conveyance methods of seized goods that infringe on Korean IPRs, 2020-2021

Conveyance Method	Share of seized goods
Air	25%
Mail	57%
Other	0%
Road	11%
Sea	7%

Source: OECD calculations.

Table A D.15. Size of seized shipments of products that infringe on Korean IPRs, 2011-19

Size of shipments	Share of counterfeit products
1 item	40%
2-5 items	11%
6-10 items	5%
>10 items	44%

Source: OECD calculations.

Table A D.16. Size of seized shipments of products that infringe on Korean IPRs, by time period

Size of shipments	Share of counterfeit products
2011-2013
1 item	10%
2-5 items	5%
6-10 items	58%
>10 items	27%
2014-2016
1 item	49%
2-5 items	12%
6-10 items	5%
>10 items	34%
2017-2019
1 item	39%
2-5 items	9%
6-10 items	5%
>10 items	47%

Source: OECD calculations.

Table A D.17. Value of trade violating Korean IPR holders by year, USD billion

Year	Value of trade infringing Korean IP rights holders (USD bn)
2011	3.15
2012	4.46
2013	10.7
2014	6.55
2015	5.25
2016	5.1
2017	10.6
2018	7
2019	2.64
2020	5.111
2021	9.093

Source: OECD calculations.

Table A D.18. Value of trade in counterfeit Korean goods (USD bn) and annual growth rate of global Korean exports, 2011-2021

Year	Value of trade infringing Korean IP rights holders (USD bn)	Annual growth rate of global Korean exports (%)
2011	3.15
2012	4.46	-1.3
2013	10.7	2.1
2014	6.55	2.4
2015	5.25	-8.1
2016	5.1	-5.9
2017	10.6	15.8
2018	7	5.4
2019	2.64	-10.4
2020	5.111	-0.1
2021	9.093	0.3

Source: OECD calculations.

Table A D.19. Total value of goods that violate Korean IPR holders by sector in 2019, USD billion

Sector	Value of trade in goods violating Korean IP rights holders	Product category	Value of trade in goods violating Korean IP rights holders
Non-metallic mineral products (e.g. glass and glass products, ceramic products)	0.002667	Chemical and allied products; except pharmaceuticals, perfumery and cosmetics	0.03307
Furniture, lighting equipment, carpets and other manufacturing n.e.c	0.002879	Mineral products (e.g. fuels, ores)	0.0399
Watches and jewellery	0.002970	Basic metals and fabricated metal products (except machinery and equipment)	0.0457
Pharmaceutical and medicinal chemical products	0.003895	Textiles and other intermediate products (e.g. plastics; rubbers; paper; wood)	0.0503
Pharmaceutical and medicinal chemical products	0.003895	Textiles and other intermediate products (e.g. plastics; rubbers; paper; wood)	0.0503
Clothing, footwear, leather and related products	0.005926	Motor vehicles and motorcycles	0.284
Food, beverages and tobacco	0.008163	Machinery, industrial equipment; computers and peripheral equipment; ships and aircrafts	0.437
Household cultural and recreation goods; including toys and games, books and musical instruments	0.009407	Electrical household appliances, electronic and telecommunications equipment	1.7

Source: OECD calculations.

Table A D.20. Value of trade in Korean IPR infringing goods by sector in 2021, USD billion

Sector	Value of trade in goods infringing Korean IP rights holders	Product category	Value of trade in goods infringing Korean IP rights holders
Non-metallic mineral products (e.g. glass and glass products, ceramic products)	0.0034	Machinery, industrial equipment; computers and peripheral equipment; ships and aircrafts	0.098
Pharmaceutical and medicinal chemical products	0.0084	Furniture, lighting equipment, carpets and other manufacturing n.e.c	0.15
Food, beverages and tobacco	0.0097	Perfumery and cosmetics	0.23
Chemical and allied products; except pharmaceuticals, perfumery and cosmetics	0.043	Clothing, footwear, leather and related products	0.25
Basic metals and fabricated metal products (except machinery and equipment)	0.055	Watches and jewellery	0.32
Textiles and other intermediate products (e.g. plastics; rubbers; paper; wood)	0.061	Motor vehicles and motorcycles	2.5
Household cultural and recreation goods; including toys and games, books and musical instruments	0.088	Electrical household appliances, electronic and telecommunications equipment	6.10

Source: OECD calculations.

Table A D.21. Top Korean manufacturing industries impacted by IPR infringement in terms of loss of sales, 2021

Sector	Sales losses
Household cultural and recreation goods; including toys and games, books and musical instruments	0.055
Furniture, lighting equipment, carpets and other manufacturing n.e.c	0.0864
Clothing, footwear, leather and related products	0.139
Perfumery and cosmetics	0.178
Watches and jewellery	0.239
Motor vehicles and motorcycles	1.79
Electrical household appliances, electronic and telecommunications equipment	3.61

Source: OECD calculations.

Table A D.22. Top Korean manufacturing industries impacted by IPR infringement in terms of absolute job numbers, 2018

Sector	Job losses
Watches and jewellery	11
Basic metals and fabricated metal products (except machinery and equipment)	56
Chemical and allied products; except pharmaceuticals, perfumery and cosmetics	68
Clothing, footwear, leather and related products	97
Food, beverages and tobacco	103
Textiles and other intermediate products (e.g. plastics; rubbers; paper; wood)	140
Motor vehicles and motorcycles	186
Machinery, industrial equipment; computers and peripheral equipment; ships and aircrafts	761
Electrical household appliances, electronic and telecommunications equipment	7 068

Source: OECD calculations.

Table A D.23. Top Korean manufacturing industries impacted by IPR infringement in terms of job losses, 2021

Sector	Job losses
Perfumery and cosmetics	349
Clothing, footwear, leather and related products	709
Watches and jewellery	953
Motor vehicles and motorcycles	2135
Electrical household appliances, electronic and telecommunications equipment	9537

Source: OECD calculations.