Gentle Monster Owner Takes Blue Elephant to Court in 12 Billion Won Copycat Case
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South Korean prosecutors have indicted Blue Elephant founder Choi Jin-woo for selling 12.3 billion won ($9 million) worth of eyewear allegedly copied directly from Gentle Monster parent IICOMBINED.
The criminal case in Daejeon District Court is the first in South Korea to test whether unpatented fashion designs receive criminal protection against direct three-dimensional replication.
Prosecutors allege Blue Elephant sent photographs of Gentle Monster frames bearing its own logo directly to overseas contract manufacturers between 2023 and mid-2025. The company produced and sold approximately 321,000 units across 51 separate models during that window. Forensic 3D scanning commissioned by IICOMBINED showed 29 models matched at least 95 per cent of Gentle Monster contour lines, with 18 exceeding 99 per cent congruence. The comparison matched Gentle Monster’s 2021 JEFF frame to Blue Elephant’s 2023 ZENTA model at 99.9441 per cent.
Discounter growth collides with premium margins
The dispute exposes the commercial fault line running through the South Korean optical sector, which expanded 74 per cent between 2022 and 2025 to reach 4.7 trillion won. Gentle Monster built its brand equity on gallery-format flagship stores, celebrity campaigns featuring Tilda Swinton and Stray Kids’ Felix, and luxury partnerships with Maison Margiela and Prada. Its acetate frames retail between 200,000 and 300,000 won.
Blue Elephant replicated the gallery retail concept in Seoul’s Seongsu-dong shopping district while pricing lookalike acetate frames between 50,000 and 70,000 won. That aggressive pricing lifted Blue Elephant’s revenue 69 per cent last year to 50.7 billion won. Operating profit collapsed 74 per cent to 3.3 billion won as retail overhead climbed.
IICOMBINED experienced its first revenue contraction in years over the same period, with total sales slipping 2.1 per cent to 772.3 billion won. Overseas business cushioned the domestic slowdown, rising to 332.9 billion won and accounting for more than 40 per cent of top-line revenue.
“The company operates 86 stores globally, with roughly 50 located outside South Korea, and plans to reach 200 outlets within five years.”
Private equity backing against legal exposure
Despite criminal charges and an active civil damages lawsuit, private capital continues to fund Blue Elephant’s retail footprint. Singapore-based private equity firm Affirma Capital acquired a 25.8 per cent stake in Blue Elephant in August for 100 billion won, a deal that valued the discount eyewear startup at 400 billion won.
That valuation demonstrates institutional confidence in fast-fashion optical margins, yet it shifts substantial compliance risk onto incoming investors. If courts rule that wholesale imitation of unpatented consumer products constitutes criminal intellectual property theft, low-cost fast-follower brands across Asian retail will face injunctions and sudden inventory write-offs.
For retail landlords across Asia-Pacific prime high streets, the case determines whether experiential eyewear stores are sustainable standalone formats or short-lived arbitrage plays on designer intellectual property. Flagship rents in Seongsu and Tokyo depend heavily on foot traffic generated by concept showrooms.
Tech partnerships separate brand tiers
Gentle Monster has responded to lower-tier copycats by pushing upmarket into connected hardware and global retail real estate. The company operates 86 stores globally, with roughly 50 located outside South Korea, and plans to reach 200 outlets within five years.
Capital markets have valued the higher-tier positioning accordingly. Alphabet paid roughly 145 billion won for a 4 per cent stake in IICOMBINED last year, valuing the Gentle Monster operator at 3.7 trillion won. That partnership yielded prototype smart glasses developed with Samsung Electronics and unveiled at industry events in London and Mountain View.
Choi resigned as chief executive of Blue Elephant in February following the initial criminal complaint and secured bail in July after his March indictment. Daejeon District Court will resume witness examination hearings in December and January.