[Edaily Reporter YU JIN-HEE ] “Cera-Q,” a product by BrainOn Co., Ltd., which was distributed under false pretenses—passing off ingredients not recognized as having functional benefits by the Ministry of Food and Drug Safety (MFDS) as if they were approved—has received consecutive notices of business suspension from major business partners. Following this newspaper’s exclusive report , “MFDS Confirms ‘Cera-Q’ Product Materials Plagiarized Data from Other Companies’ Ingredients,” the distributor and manufacturer have embarked on a comprehensive business restructuring and product recall, effectively leading to Cera-Q’s exit from the industry.

BrainOn’s Major Client, Company M, Completely Halts Use of Cera-Q

According to health authorities and industry sources on the 18th, M Company, a mid-sized domestic multi-level marketing firm, has decided to completely halt the use of “SeraQ,” a secondary ingredient previously used in its health functional food “Brain Plus.” N Company, a domestic contract manufacturer (OEM) that had been responsible for the contract production of the finished product, has also officially notified BrainOn of the suspension of raw material supply and production.

This situation was triggered by an article published by this newspaper last month reporting that the Ministry of Food and Drug Safety (MFDS) had initiated administrative sanctions and legal proceedings. Our investigation revealed that BrainOn had been supplying “CeraQ” despite the fact that its efficacy had not been recognized by the MFDS, by tampering without authorization with research data from another company’s ingredient that had received individual recognition from the MFDS. The method involved erasing the original ingredient name from clinical graphs and replacing it with the generic term “silk.”

The MFDS confirmed these actions and initiated legal sanctions for alleged false advertising. Meanwhile, the distributor, Company M, and the manufacturer, Company N, had been planning and selling the products based on the false explanatory materials provided by BrainOn. Although Company N merely manufactured the product according to the specified formulation and Company M conducted promotional activities based on BrainOn’s training materials, they were left to bear the full brunt of damage to their brand image and financial losses as the MFDS sanctions took full effect.

Upon realizing the situation, both companies made immediate decisions. Company N halted production of all product lines containing SeraQ, while Company M removed all related advertisements from its official online store and YouTube channel. The burden of disposing of existing inventory of finished products and covering marketing losses fell entirely on the distributor and the manufacturer. Ultimately, BrainOn’s false information dealt a severe blow to the entire distribution network.

Industry observers assessed this suspension of business as a signal heralding SeraQ’s complete exit from domestic and international markets. As major clients—who had been the backbone of the raw material supply—have completely withdrawn, other dietary supplement manufacturers are also accelerating their efforts to exclude SeraQ.

Even companies that previously manufactured SeraQ under contract have stated that SeraQ differs from other companies’ genuine products in terms of “raw materials, processing methods, and the enzymes used, resulting in different end products and efficacy.” Experts unanimously agree that with natural products—particularly protein hydrolysates—even if the raw materials are similar or identical, different processing methods can yield entirely different end products with varying efficacy. In many cases, the actual production site changes, leading to uncertainty regarding the product’s identity. There are also numerous instances where non-genuine raw materials are manipulated to merely mimic the levels of marker substances. This serves as a warning that using such products simply because they appear cheaper could result in significant harm.

An official from the health authorities emphasized, “Using secondary ingredients whose official approval has been revoked to imply disease prevention or brain function improvement constitutes intentional consumer deception,” adding, “We plan to take strict administrative disciplinary actions and file criminal charges without exception against companies that use plagiarism, impersonation, or false descriptions in their advertising.”

Damage to overseas consumers, who are unaware of domestic circumstances, is an even bigger problem... Concerns over declining trust in domestic companies

Seracu, which is distributed in overseas markets, is also a problem. Seracu is currently being sold in overseas markets under a new name, “Memo-Q.” Overseas promotional materials still brazenly feature phrases such as “Approved by Korean regulatory authorities” and “Proven through more than 10 clinical trials.” This is a classic tactic of whitewashing the company’s history—including the revocation of its approval in Korea due to the retraction of a paper involving data manipulation—to deceive overseas consumers.

Experts warn that overseas partners will also find it difficult to avoid legal risks. Since the product’s misrepresentation and plagiarism have been officially confirmed in Korea, overseas distributors are legally obligated to verify the authenticity of the ingredients. If they continue to sell Memo-Q while knowing the facts, they could face severe penalties under consumer protection regulations enforced by health authorities in their respective countries.

This is not the first time BrainOn has faced allegations of illegal activity. Kang Yong-gu, CEO of BrainOn, has a history of receiving a business suspension and a Supreme Court conviction with a fine for running false advertisements by misappropriating the results of another company’s individually approved ingredients. At the time, the judiciary ruled that “the nature of the crime is severe, as it was committed with the intent to capitalize on another company’s research results.” An ingredient for children’s height growth previously developed by CEO Kang also caused controversy when the entire batch was recalled due to the inclusion of non-edible materials and the retraction of a related research paper.

Based on a comprehensive review of MFDS registration data and National Assembly records, the number of cases involving false or exaggerated advertising related to SeraQ alone totals 98, and the company has received corrective orders four times during National Assembly oversight hearings. Nevertheless, the industry’s consensus is that the repeated plagiarism of other companies’ research and impersonation are not mere oversights but rather structural and malicious business practices.

“Violation of the Act on the Labeling and Advertising of Foods, etc.” is a serious crime that undermines fair competition in the market and shakes the very foundation of the national certification system. Article 8 of this Act strictly prohibits “anyone” from engaging in labeling or advertising that deceives consumers or causes them to mistake general foods for dietary supplements. Selling ingredients lacking scientific evidence as substitutes not only undermines the integrity of biotech companies that are honestly dedicated to research and development but also threatens consumer safety.

Consumers must also exercise caution. Secondary ingredients in general foods must not be labeled as having any functional properties on packaging or in advertisements. If you come across a product containing SeraQuna or MemoQuna, you must check the list of certified functional ingredients on the Ministry of Food and Drug Safety’s “Food Safety Korea” website. If you purchased a product after being misled by false advertising, you can seek assistance through the 1372 Consumer Counseling Center or the 1399 Hotline for Reporting Substandard Foods.

A representative from Company M stated, “We decided to suspend all transactions immediately upon becoming aware of the distortion of data provided by the supplier,” adding, “We will significantly strengthen our raw material verification procedures going forward and take thorough measures to ensure no consumer harm occurs.”