The short answer
- Blue Elephant started as an online eyewear shop in 2019 and hit ₩50.7 billion in revenue in 2025 (up 69% year on year). Most pairs cost around ₩50,000.
- In February 2026, its founder and then-CEO was arrested on charges of copying Gentle Monster's product designs — the first arrest in Korea over unregistered design imitation. He was released on bail in July, and the trial is ongoing. No verdict yet.
- Yet the business kept growing. The CEO stepped down, professional managers took over, and in August global private equity firm Affirma Capital invested ₩100 billion (valuing the company at about ₩400 billion). It now runs around 30 stores across Korea, Japan, and the US.
Walk through Myeongdong or Hongdae and you’ll pass at least one storefront with a blue elephant on the sign. Inside, it’s usually packed with foreign visitors, and there’s a line at the register. Sunglasses for a little over ₩50,000 — and in the photos people post to Instagram, they’re hard to tell apart from the ₩300,000 ones.
That “hard to tell apart” part is exactly what landed this brand in court.
What happened in six years?
Blue Elephant launched in January 2019 as an online-only eyewear brand. In its early days it skipped optical-shop distribution and sold only through its own channels, then from 2023–2024 began opening stores, starting with Seongsu Seoul Forest and spreading to Hannam, Yeonnam, Hongdae, Bukchon, Dosan Park, and Myeongdong.
The growth engine was clear: price × space × tourists. Stores fitted out far more stylishly than an ordinary optical shop, prices that don’t hurt, and YouTube/TikTok lists of “what to buy when you visit Korea.” For foreign visitors it became something close to a souvenir.
So why was the CEO arrested?
The short version: in February 2026, a court issued an arrest warrant on charges that the company copied rival Gentle Monster’s product designs and sold them — a violation of the Unfair Competition Prevention Act.
It began in December 2024. IICOMBINED, the company behind Gentle Monster, filed a criminal complaint alleging its product designs and store-space concepts had been copied. The tech-design special judicial police under the Korean Intellectual Property Office and the patent crime unit of the Daejeon District Prosecutors’ Office then opened an investigation.
The most striking detail to come out of the investigation was that there was no design team. According to prosecutors, Blue Elephant had no in-house design function; it pasted its own logo onto photos of Gentle Monster products, then sent overseas manufacturers a production order noting only colors and quantities. No blueprints, no renderings, no detailed dimensions. Another company’s product photos effectively served as the design spec.
The alleged copying didn’t stop at the products. It extended to the glasses pouch design and even the space concept of the Myeongdong flagship that opened in 2024. It also emerged that Blue Elephant had registered, under its own name, a pouch design Gentle Monster first showed in 2021 — prompting IICOMBINED to file for invalidation of that registration.
Why this case is unusual
Gentle Monster hadn't registered design rights for the products in question. So this isn't a design-right infringement case — it's being pursued under Article 2 of the Unfair Competition Prevention Act: "imitating the shape of another's product within three years." The clause has existed for a long time, but it has almost never led to criminal punishment, let alone an arrest. That's why the fashion and eyewear industries are watching this trial closely.
What does Blue Elephant say?
The company’s position has been consistent: it doesn’t admit to copying. Three points stand out.
- Structural similarity is unavoidable. Glasses inevitably resemble each other because of ergonomic constraints, and the company argues the investigation didn’t fully account for that.
- Using references is industry practice. The new CEO drew a line: yes, they referenced Gentle Monster, but that’s separate from breaking the law.
- Common shapes of goods aren’t protected. The company argues this on the law’s own terms — the Unfair Competition Prevention Act itself excludes ordinary, generic forms from protection.
The former CEO denied the charges at an April 2026 hearing and was released on bail on July 28. The trial is ongoing, and no verdict has been reached.
What happened to the company after all this?
Here’s the real twist. When a story like this breaks, the brand usually collapses. Blue Elephant went the other way.
📌 Timeline since December 2024
| When | What happened |
|---|---|
| Dec 2024 | IICOMBINED (Gentle Monster) files a criminal complaint |
| Feb 2026 | Court issues an arrest warrant for the founder-CEO |
| Late Feb 2026 | CEO resigns; CFO and CRO become co-CEOs under professional management |
| Mar 2026 | Indicted (Unfair Competition Prevention Act). First criminal arrest over unregistered design imitation |
| Apr 2026 | First hearing; charges denied. 2025 revenue of ₩50.7 billion disclosed (operating profit fell sharply year on year) |
| Jun 2026 | US entry — Beverly Hills flagship |
| Jul 2026 | Former CEO released on bail; trial continues |
| Aug 2026 | ₩100 billion raised from Affirma Capital; valuation around ₩400 billion |
The company put “structural overhaul” front and center. It built its product, space, and content design team up to 19 people, and said it would raise R&D spending from 2% of 2025 revenue to 3% in 2026. The industry read on the private equity bet is that it was on “systems” rather than “growth.”
At the same time, revenue grew 69% in 2025 while operating profit actually shrank sharply — the combined cost of store expansion and legal defense. The controversy didn’t dent sales, but it wasn’t free, either.
So — should you buy one?
That’s a judgment call, and I won’t hand you the answer. But the facts are these.
- It's not counterfeit. Legally, this is completely different from selling fakes under someone else's brand. Blue Elephant is a properly registered brand selling under its own label, and the sale itself is lawful.
- The issue is "shape imitation." Did it copy someone's design, and can that design even be legally protected? The court is deciding.
- Not everything on sale is disputed. Gentle Monster flagged 33 out of about 80 products.
- If you want the original, go to Gentle Monster. It's six times the price, but it's the original.
If you're buying, where should you go?
Short version: the Myeongdong flagship wins on stock and variety. Go to Seongsu or Hannam if you want to see the space.
📍 Open in Naver Map (Myeongdong)
🕶️ Gentle Monster vs Blue Elephant — what's actually different
| Gentle Monster | Blue Elephant | |
|---|---|---|
| Price | around ₩300,000 | around ₩50,000 |
| Launched | 2011 | 2019 (online) |
| Store vibe | large-scale art installations | polished small/mid retail |
| Core customers | fashion consumers and celebrities, domestic and global | high share of inbound tourists |
| Materials & finish | in-house materials, dense finishing | decent for the price; differs from the original |
| Current status | plaintiff (IICOMBINED) | defendant, trial ongoing |
Shopping tips
- Tax refund: purchases over ₩30,000 in one transaction often qualify for instant refund. Have your passport out before paying to speed things up.
- Prescription lenses: Korea requires an optician's license for eye exams and fitting, so it varies by store. For short trips, sunglasses and decorative frames are the realistic play.
- Fit: many models use nose pads based on Asian-fit standards. If you have a higher bridge, definitely try them on in-store before buying.
- Timing: Myeongdong is quietest on weekday mornings. Weekend afternoons mean long checkout lines.
What this case will leave behind
The outcome of this trial will decide something bigger than the fate of one sunglasses brand. Fashion has long operated in a gray zone between “reference” and “plagiarism.” Product cycles are so short that registering every design is impractical, which is why most disputes have ended in civil court.
If Korean courts start treating large-scale copying of unregistered designs as a criminal offense, that line could become a reference point well beyond Korea. Conversely, if the “glasses just look alike” defense holds, the protection for unregistered designs narrows again.
Until the answer comes, the line outside the blue elephant stores will probably keep moving.
Sources
- News1, "'Dead copy' first arrest... Blue Elephant–Gentle Monster dispute shakes the fashion industry" (2026.03.17)
- The Fashion Law, "When Copying Crosses the Line: Korea's Crackdown on Dupes" (2026.04.20)
- Seoul Economic Daily, "'99% match'... Blue Elephant CEO indicted over Gentle Monster design imitation"
- Seoul Economic Daily, "'Foreign PEF bet' — Blue Elephant's ₩400 billion valuation amid plagiarism row" (2026.08)
- Economist (KR), "Blue Elephant raises ₩100 billion... a bet on 'systems,' not 'growth'" (2026.08.07)
- Korea Duty Free News, "Blue Elephant: CEO resignation, R&D expansion... 'overhauling after the imitation controversy'"
- ZDNet Korea, "Blue Elephant CEO indicted amid plagiarism allegations... 'glasses are structurally similar by nature'" (2026.03.17)
- English reports by Korea JoongAng Daily and The Korea Herald
※ The allegations described here were still before the courts as of August 28, 2026, and no verdict has been reached.