Musinsa has taken a hard line on “tag switching” by brands on its platform. It says it is considering sales suspensions, contract termination and even permanent expulsion if violations are found. Observers say the move reflects an effort to prove its platform management capabilities and credibility ahead of an initial public offering (IPO).

Musinsa recently said it will take a tough stance, including possible expulsion, if a brand is caught switching tags. Tag switching refers to replacing only the tag of another company’s product and selling it by passing it off as an in-house product.

Allegations of tag switching began with shoes sold by Marzin (MARZIN), a handmade shoe brand on Musinsa. A claim was raised after product-page text stating that Horween cordovan leather was used in the brand’s men’s shoes was deleted after an event ended. The product was sold at a high price, in the 500,000 won range after a discount rate in the 30 percent range during the event, and the controversy spread quickly. The brand denied allegations of tag switching and fraud at the time, but it has now left the Musinsa platform.

Musinsa later said it will apply a zero-tolerance principle in connection with the controversy over tag switching. It plans to permanently restrict access to all Musinsa platforms, including Musinsa and 29CM, if tag switching is found in products described as in-house during the onboarding review process.

The controversy over tag switching by platform brands is drawing attention because it can spread into a broader trust issue for the entire platform. Musinsa is a platform that brings in brands after screening, and consumers decide to buy based on trust in Musinsa’s verification system. If gaps in brand verification are exposed, it could undermine trust in the platform overall.

This is not the first time Musinsa has faced criticism over trust issues related to products it sells. In 2022, a T-shirt of the imported luxury brand Fear of God Essentials sold through Musinsa Boutique was judged to be counterfeit, sparking controversy. The issue grew after Naver’s resale platform Kream determined the product was counterfeit. With authentication capability emerging as a key issue in the resale market at the time, Musinsa also took a significant hit to its credibility.

The product at the center of the issue was sold from inventory held and sold directly by Musinsa. Musinsa now conducts pre-inspections at the pre-stocking stage in cooperation with specialised institutions such as TIPA, the Trade-Related Intellectual Property Rights Protection Association.

But controversy over products sold on Musinsa has continued to surface intermittently, underscoring Musinsa’s role as a platform. Musinsa has also complained that under current law, it is difficult for a mail-order brokerage operator (platform) to force a pre-inspection process for products.

A Musinsa official said, “This tag-switching case occurred under a consignment sales structure in which the brand directly manages inventory and handles shipping.” The official added, “Given the nature of Musinsa not directly holding the physical products, there is a limitation that makes physical pre-inspection of all items difficult.”

Musinsa nonetheless plans to prepare technical and institutional supplements based on its own safe transaction policy. It will build an AI-based online inspection system it developed next month and conduct a full similarity review covering 1.2 million products listed on Musinsa and 29CM. A Musinsa official said, “In the future, we plan to expand the scope of analysis to channels beyond Musinsa and refine the filtering system.”

Some interpret Musinsa’s decision to adopt a zero-tolerance stance on tag switching as a pre-emptive response to remove risk factors that could become obstacles ahead of its IPO. According to the industry, Musinsa plans to file for a preliminary listing review in July. Musinsa’s corporate value is 10 trillion won.

Musinsa’s performance is also growing rapidly ahead of the IPO. In 2024, Musinsa posted revenue of 1.24 trillion won and operating profit of 102.8 billion won, swinging to a profit from an operating loss of 8.6 billion won the previous year. On a cumulative basis through the third quarter of 2025, it recorded revenue of 973.0 billion won and operating profit of 70.6 billion won, with operating profit up 20.1 percent from a year earlier.

Musinsa is expanding its business by focusing on expanding offline stores since the second half of last year and again in early this year. Musinsa set a goal of opening more than 20 new stores this year to reach 60 offline locations in South Korea and overseas. As of the end of last year, Musinsa had 34 stores in total, including 33 in South Korea and 1 in China, representing an increase of more than 70 percent in a year. It is also diversifying store types, including Musinsa Store, Standard, Empty (high-end) and Kicks (shoes), expanding its business scope within fashion.

A Musinsa official said, “We are currently reviewing explanatory materials submitted by the brand.” The official added, “While the explanation process is under way, sales of all products from the brand have been suspended.” The official said, “To address this kind of issue, we will introduce an AI-based online inspection system to eliminate blind spots in monitoring.”