Alibaba Launches Korea Pavilion to Bring Authentic Goods to Chinese Consumers

NEW YORK (TheStreet) -- Just two days after Kering luxury brands filed a lawsuit against Alibaba (BABA) for selling counterfeit goods, the Hangzhou, China-based Alibaba is rolling out a new platform that will promote genuine Korean goods.

The Korea Pavilion is hosted on Alibaba's Tmall marketplace and will feature Korean goods as well as travel and cultural information. Alibaba Executive Chairman Jack Ma and Choi Kyunghwan, Deputy Prime Minister of Korea, unveiled the new platform Monday along with a new program that will send 100 Korean college graduates to intern at Alibaba's headquarters.

"The Korea Pavilion is Alibaba Group's first official country pavilion and we will continue to work with governments of other countries to launch similar pavilions in the future in order to satisfy the needs of our Chinese consumers," Ma said at the opening ceremony in Seoul.

The timing of this new platform immediately follows the filing of Paris-based Kering's lawsuit, which claims Alibaba knowingly makes it possible for counterfeit goods to be sold in its marketplaces.

"We continue to work in partnership with numerous brands to help them protect their intellectual property, and we have a strong track record of doing so," an Alibaba spokesperson said. "Unfortunately, Kering Group has chosen the path of wasteful litigation instead of the path of constructive cooperation. We believe this complaint has no basis and we will fight it vigorously."

Alibaba has encountered much criticism regarding counterfeit goods as well as a practice called brushing in which sellers use fake customers to inflate sales numbers, improperly improving their online status.

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