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Counterfeit Phone Ring Busted in Busan: Gang Manipulated Battery Performance, Made 3.5 Billion Won

Using counterfeit parts from China… Manipulating battery performance
Receive a free replacement if your used phone suffers an electric shock
Six current service center technicians were also bribed and committed the crime.

The criminal method of a gang that produced and distributed counterfeit used phones worth 3.5 billion won. Photo provided by Busan Police Agency

A group of people who manipulated battery performance or distributed over 10,000 used smartphones assembled with counterfeit Chinese parts was caught.

They bought used phones that were still under the after-sales service compensation period, gave them electric shocks, received free replacements from the manufacturers, and resold them. It was revealed that the illegal profits they made were worth 3.5 billion won.

The Busan Police Agency’s Anti-Corruption and Economic Crime Investigation Unit announced on the 22nd that it had arrested 28 people on these charges (violation of the Act on Aggravated Punishment of Specific Economic Crimes, etc.) and detained three of them, including Mr. A.

According to the police, four people in charge, including Mr. A, are suspected of opening five used smartphone stores in the Busan area from January 2020 to March 2023, purchasing old used phones at low prices, and planning and directing the entire crime.

Two Chinese smugglers smuggled in counterfeit parts purchased in China by falsely reporting the product names to the Korea Customs Service.

Thirteen repair technicians replaced old parts of used smartphones with smuggled parts and manipulated the maximum battery performance to over 90%.

The police explained that they sold over 10,000 products worth 1.5 billion won through their stores or online.

As a result of the police investigation, it was revealed that Mr. A and others bought used mobile phones worth 700,000 won, repaired them with counterfeit Chinese products, and sold them for 1.1 million won as if they were officially repaired products, making a profit of about 400,000 won per unit. In addition, by manipulating the battery performance indication, he made unfair profits of 130,000 to 190,000 won per unit.

They intentionally applied electric shock to the internal circuitry of used phones that were still within the compensation period, causing black dots to form inside the screen, and received free exchanges 4,155 times, making a profit worth 920 million won.

The police also explained that it was confirmed that the three free exchangers bribed six current service center technicians to pay 30,000 to 250,000 won per device for devices that could not be exchanged free of charge and exchanged them for free.

A police official said, “We have notified Manufacturer A of a smartphone capable of manipulating battery performance of the possibility of manipulating battery performance,” and added, “Three types of dedicated connectors required for manipulating the performance of a specific smartphone are being distributed on overseas direct purchase sites, so their import is prohibited.” “We requested the Korea Customs Service to designate it as an item,” he said.

2024-01-22 02:15:38
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