Busan Police uncovered a secret warehouse near Gukje Market which was making and distributing counterfeit goods to vendors in the area.
They found nearly 6,000 luxury counterfeit items at the location which had no store name or signboard.
The fake products were mostly foreign luxury brands such as Louis Vuitton, Gucci, Prada and Hermes with a market value of 5 billion won (USD $4,400,000).
Police have seized all of their finished products and labels, and are expanding their investigations into merchants who have received counterfeit goods and another vendor who sold them.
Additionally, the Korea Tourist Police of Busan booked a 57-year-old woman without detention on suspicion of violating the trademark law.
According to the police, the suspect has been allegedly smuggling fake luxury goods from China and distributing them to 20 other retailers located in Gukje Market since last June.