[Korean Startup Interview] Fighting Counterfeits: QUAZAR’s Data-Driven Authentication Tech


  • funding Stage : pre-series A
  • Raising Amount : KRW 1.5B
  • Desired Fundraising Timeframe : 2Q 2025
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As the luxury goods market expands, concerns over counterfeit products are growing. Consumers who spend a significant amount of money on luxury items only to later discover that they have purchased a fake can face major disappointment. This issue has become even more pressing since the COVID-19 pandemic, as luxury shopping has shifted from traditional offline venues like department stores to online platforms such as e-commerce sites and large-scale retail marketplaces. As a result, the demand for authentication services has also increased.  

At the same time, the secondhand luxury market is growing. Since most transactions in the resale market occur between individuals, disputes over authenticity are frequent. The company featured in this article, QUAZAR, provides luxury authentication services using vision AI technology.  

In some countries, state-certified authentication institutions exist, but South Korea does not yet have such an entity. This suggests significant potential for the luxury authentication service market in the country. However, the current authentication process still relies heavily on individual appraisers who manually verify authenticity. The system has not been digitized and follows a master-apprentice training model to pass down expertise. Moreover, even skilled appraisers are finding it increasingly difficult to detect counterfeit items, as the quality of fakes has improved to the point where they are nearly indistinguishable from authentic products. This has created a need for a more sophisticated authentication system.  

So how does QUAZAR differentiate between genuine and counterfeit products? When asked whether a company or consumer could simply take a quick photo of an item for authentication, CEO Myung-Hyun Kim responded, “It’s the exact opposite. To authenticate a product, photos must be taken at specific angles and under specific lighting conditions to clearly capture the material’s texture, along with a precise image of the text on the purchase certificate.” In other words, a casually taken photo is not sufficient for authentication. Kim further explained, “For metal-based products, for example, it is crucial to check how light reflects on the surface. Therefore, photos must be taken carefully at angles that clearly capture the reflections.”  

This approach requires meticulous cooperation from companies and consumers, making QUAZAR’s method far more convincing than simply claiming that their solution provides “easy authentication.”  

However, taking precise photos alone does not automatically enable authentication. When Kim founded QUAZAR in 2020, AI—especially vision AI—was far less developed than it is today. Recognizing this, he focused on data as the key factor. Since before the company’s founding, QUAZAR has accumulated and standardized over 300,000 data points on genuine and counterfeit items. Their strategy has been to standardize the distinguishing features of authentic and fake products, train AI models based on this data, and refine the authentication process. This approach is now yielding tangible results.  

One case highlighting QUAZAR’s accuracy involved a luxury department store in South Korea requesting authentication for a product. A well-known overseas authentication company, referred to as Company E, had previously deemed the item genuine. However, QUAZAR’s system determined that it was a counterfeit—and it turned out that QUAZAR was correct. This incident significantly boosted the company’s credibility in the market, demonstrating the value of its long-accumulated data and AI training.  

QUAZAR’s business performance has also been promising. The company generated approximately KRW 1 billion (USD 750,000) in revenue in 2023 through B2B and B2C business models and expects to achieve KRW 1.5 billion (USD 1.1 million) in revenue in 2024. Moreover, QUAZAR turned profitable last year and anticipates a net profit of KRW 300–400 million (USD 225,000–300,000) this year. This indicates that more clients are adopting its authentication solution.  

Currently, QUAZAR is working to enhance its authentication accuracy from 95% to 99% and is refining its technology accordingly. To support these efforts, the company is actively engaging with investors, conducting at least one investor relations (IR) meeting per week.  

The name QUAZAR originates from “quasar,” an astronomical phenomenon where a supermassive black hole, billions of times the mass of the sun, emits immense light as it absorbs surrounding matter. This light is so intense that quasars can be observed from billions of light-years away. Similarly, QUAZAR aims to become a “quasar in the luxury authentication market” by continuously improving its AI models and accumulating more data with the help of investor backing.  

Meanwhile, QUAZAR has also participated in the SMART-X LAB online IR support program, a joint initiative by the Incheon Creative Economy Innovation Center and KT, which has helped the company effectively showcase its product to investors and explore various market expansion strategies.

What problem is Quazar trying to solve?  

Quazar aims to tackle the growing issue of counterfeit products in the luxury market, which undermines trust and distorts the industry. As counterfeit goods become increasingly sophisticated, distinguishing them from genuine products has become more challenging. This erodes trust between consumers and brands, ultimately reducing market efficiency. Consumers struggle to feel confident that they are purchasing authentic items, while sellers face significant reputational damage and financial loss when counterfeits infiltrate the market. Additionally, we seek to modernize the authentication process, which has traditionally relied on the subjective expertise of individual appraisers.  

How do we solve this problem?  

To address this issue, we have developed an advanced AI-powered authentication system that provides consumers with a reliable and trustworthy purchasing experience. Our goal is to protect the value of luxury brands, improve market efficiency, and ultimately foster a more transparent and credible industry.  

Our AI model offers real-time authentication by leveraging years of luxury authentication data and cutting-edge AI technology. It utilizes a highly refined small-scale object detection model and an expert-optimized approach called MOE (Mixture of Experts) to enhance the precision of counterfeit detection.  

What sets Quazar apart from competitors?  

Quazar has built an extensive database of not only genuine luxury products but also highly sophisticated counterfeits. This data serves as a critical resource for refining our AI technology. By analyzing counterfeit patterns, we have developed a proprietary method called CFI (Counterfeit Fingerprint Identification), which detects fakes based on unique counterfeit-specific characteristics. This approach allows for faster and more precise counterfeit detection in an increasingly sophisticated market.  

Additionally, we have developed a specialized data ontology for counterfeit products, enabling us to detect high-grade counterfeits (A-grade and above) with greater accuracy. Our technology has been validated through POC (Proof of Concept) projects with leading department stores and major retail platforms. With deep expertise in luxury fashion and distribution, we continue to refine and expand our AI solutions to meet the specific needs of different sectors within the industry.

What services do we provide?  

We are currently focused on development, aiming to complete our prototype this year and launch a commercial version in the first half of next year. Our solutions cater to both B2B businesses that require large-scale offline product authentication and individual consumers engaging in peer-to-peer transactions online.  

One of the biggest challenges in existing authentication systems is not data analysis itself but the difficulty of securing high-quality data. To address this, we use a user-input labeling structure and an advanced object detection model to classify metadata. As a result, our system improves in accuracy as more users engage with it. Additionally, we are expanding our services to include blockchain-based certification to enhance trust and security after authentication.  

What is the size of our target market, and who are our key customers?  

The global luxury market is estimated to be worth over KRW 500 trillion, with the domestic market valued at approximately KRW 70 trillion. Among this, the demand for authentication services is estimated to be around KRW 10 trillion. In addition to this market, we see significant potential in the secondhand luxury market.  

While authenticating brand-new products is already challenging, secondhand items present even greater complexity due to differences in components and varying conditions. However, as the resale market rapidly expands amid economic shifts, the demand for real-time authentication solutions—especially in peer-to-peer transactions—is increasing significantly. Our primary B2C target customers are individuals involved in secondhand trading, while we also plan to expand our B2B services and eventually enter the B2G (business-to-government) market.  

What is our business model?  

We operate under three main business models: subscription services, transaction fees, and consignment services.  

The subscription service primarily targets B2B clients, such as major distribution channels. We offer contracts based on monthly or annual volume commitments, providing discounted pricing for clients processing at least 100 transactions per month.  

The transaction fee model is designed for individual customers who require high-precision authentication for luxury items such as high-end fashion brands like Hermès and Chanel, as well as premium watches like Rolex. Fees are set at approximately 3–5% of the product’s value.  

The consignment service is tailored for online sellers, allowing them to integrate authenticated products into e-commerce platforms. This ensures that verified items can be seamlessly connected to online sales channels, providing buyers with greater confidence in their purchases.

What achievements has our team made so far?  

We have been recognized for both our technological capabilities and business potential. Our service has demonstrated superior performance and reliability compared to existing solutions, leading to contracts with major distribution channels. As a result, we achieved KRW 1 billion in revenue last year. Additionally, we were selected for the Startup Leap Package and the Startup Growth R&D Program, enabling us to further develop AI and blockchain technologies. In August, we secured seed funding from Incheon Center for Creative Economy & Innovation and Newborn Ventures, and in October, we were selected for TIPS. We currently hold five patents, with three more applications in progress, along with four design and trademark registrations.  

Since the luxury industry is centered around global brands, we have proactively built a foundation for expansion into Europe. A European networking expert with over 30 years of experience is currently based in France, working on standardizing luxury authentication and preparing for entry into the global distribution network.  

What gives the Quazar team a competitive edge?  

Our team is composed of seasoned professionals and experts from various fields, each essential to delivering our service. We have a deep understanding of the market, the business risks involved, and the solutions needed to mitigate them.  

CEO Myung-Hyun Kim has over 10 years of experience in the luxury fashion industry, having built luxury platforms and shaped the market firsthand. Recognizing the increasing demand for authentication services and the risks posed by counterfeit products, he founded Quazar to address these challenges.  

Our team also includes a European networking expert with more than 30 years of experience in luxury fashion and distribution, currently based in France to establish a foothold in the global market. Additionally, we have seasoned luxury authentication researchers who have been part of the industry since its inception in Korea. Our engineers go beyond technical expertise—they understand fashion data, demand forecasting, and detection models, ensuring that our technology aligns with the real needs of the luxury industry.  

Why should we receive investment? Here are three key reasons.  

First, we have a clear business model and have successfully generated revenue for over four years. We have navigated through the challenging early stages of a startup while strengthening our R&D capabilities.  

Second, we have a deep understanding of the market’s challenges and opportunities. We have developed a highly optimized service to address these needs and have been validated through multiple government startup support programs and R&D initiatives.  

Third, we have the infrastructure, expertise, and talent necessary to build and scale this service. Our team includes industry veterans from the fashion sector, global experts with in-depth knowledge of luxury brands, AI researchers, specialists in detailed fashion data ontology, and luxury authentication experts who ensure the credibility of our technology. This combination makes Quazar a startup with immense growth potential.  

Lastly, is there anything you would like to say to our readers?  

Amid the current economic downturn, the focus of the luxury market is rapidly shifting toward the secondhand sector. While parallel imports of new products have been relatively unproblematic since they are linked to the brand owner’s revenue, the growing secondhand market presents a challenge for brands that rely on new product sales. If legal disputes arise, companies could face significant financial risks.  

Quazar is not just a product verification company. We are evolving into a provider of structured management systems and advanced technology solutions that will help maintain the integrity and efficiency of the luxury market in the long run.

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