Unless you’ve been living under a rock, you must have probably noticed the whole world going gaga over Korea — K-pop, K-drama, K-beauty, even their robots are all the rage! It’s like everyone’s caught the Korea bug! And guess what? Just like K-pop and those addicting dramas have their own special place in entertainment, K-fashion is carving its own style niche too. From cool streetwear to classy outfits, Korean fashion is winning over hearts everywhere! This global impact of Korean popular culture is referred to as Hallyu or the ‘Korean Wave’. This presents a significant opportunity for the Indian fashion industry to tap into the market through collaboration and partnerships to expand their reach and influence.

Economic landscape and apparel market projections

According to Horizons, a leading international Employer of Record (EOR) technology company, the average annual salary in South Korea in 2022 stood at US $ 34,210, surpassing that of neighbouring countries like Japan and China, which reported averages of US $ 32,296 and US $ 15,339 respectively. Despite this, South Korea’s median household income in the same year, as per Statista, was recorded at US $ 25,063. The country’s economic landscape also includes a notable presence of high-net-worth individuals (HNWIs), with approximately 8,30,000 such individuals residing in South Korea in 2021. This demographic experienced significant growth, expanding by about 73 per cent from 2016 to 2021 and are projected to reach around 1.35 million by 2026. Additionally, in 2023, an estimated 4,56,000 people in South Korea possessed financial assets valued at one billion South Korean won or more, representing a 7.5 percent increase from the previous year, according to Statista. Reflecting the country’s economic strength, Korea’s gross national income (GNI) per capita reached US $ 33,745 in 2023, as reported by World Bank.

According to Statista, the revenue in the apparel market of South Korea is projected to reach US $ 39.36 billion in 2024. It is anticipated to grow at an annual rate of 0.30 per cent (CAGR 2024-28). The largest segment in this market is women’s apparel, which is estimated to have a market volume of US $ 19.45 billion in 2024. In 2023, the South Korean textile industry imported goods valued at around US $ 18.87 billion with the value of textile exports amounting to about US $ 10.92 billion, according to Statista.

Trade with China, Vietnam, Bangladesh and India

In 2023, China emerged as South Korea’s leading apparel exporter, with exports totalling US $ 6.71 billion, according to the United Nations Comtrade database on international trade. Meanwhile, trade with Bangladesh amounted to US $ 578 million. On the other hand, South Korea’s apparel imports from Vietnam experienced a decline of 7.75 percent in 2023, totalling US $ 3.443 billion. Despite this decrease from US $ 3.733 billion in 2022, Vietnam remained South Korea’s second-largest apparel supplier. Trousers and shorts were amongst the most imported items.

On the other hand, the trade relationship between India and South Korea has yet to reach its full potential. In 2022, apparel exports from India to South Korea saw good growth, surging to US $ 59.451 million from US $ 39.002 million in 2021. This increase marks a significant turnaround from previous years’ figures, with shipments recorded at US $ 54.132 million in 2018, declining to US $ 49.749 million in 2019 and further dropping to US $ 38.644 million in 2020.

On the policy front, negotiations concerning the expansion of the Comprehensive Economic Partnership Agreement (CEPA) between India and South Korea are expected to wrap up in 2024. The CEPA was initially signed between the Republic of Korea and India back in 2009. India has proposed renegotiations of the CEPA to foster a more balanced and fair trade relationship. India’s trade deficit with South Korea increased to US $ 14.57 billion in FY ’23 from US $ 9.39 billion in the previous year. South Korea is the fourth largest economy in Asia and the 13th largest in the world.

Online dominance and luxury consumption

South Koreans are also avid internet shoppers, thus online retail is king there. GlobalData’s 2023 Financial Services Consumer survey found that over 80 per cent of respondents said they had shopped online in the previous six months and only 10 per cent said they had never done so.

South Korea had a 40 per cent increase in sales compared to pre-pandemic levels in 2023 and the country accounts for more than 10 per cent of consumers for brands such as Prada, Bottega Veneta, Burberry and Moncler in overall retail sales, according to research by Barclay’s. In 2022, South Koreans emerged as the world’s largest consumers of luxury goods, and by 2028, the country’s fashion market is expected to generate US $ 22.92 billion in revenue.

Businesses from all around the world are investing in South Korea and its customers, regardless of the market or product line. International fashion brands such as Zara (with over 30 stores), H&M (41 stores) and Uniqlo (128 stores) have established a strong presence in the country, catering to the growing demand for fashionable and stylish apparel. Investment tends to be concentrated more on the distribution of global fashion brands than on apparel manufacturing and it mainly includes joint ventures of global fast fashion brands such as UNIQLO and Zara with Lotte Group, one of South Korea’s largest conglomerates with annual sales of over US $ 10 billion and even Inditex (Zara’s parent brand) granting Lotte Group 20 per cent ownership in Inditex Korea. Burberry (40+ stores) and Gucci (60 stores) are amongst the luxury brands that have directly entered the Korean market to benefit from the sustained growth in the Korean fashion industry and attract foreign tourists.

Foreign investors are also drawn to physical shopping, as seen by an agreement between Thai and South Korean department store developers – Siam Piwat Group and the Hyundai Department Store. To serve both Thai clients and foreign tourists interested in South Korea, this includes a shopping experience based upon Korean culture, including K-pop, K-food and K-fashion.

A look into homegrown brands

This might be one of the popular K-Drama TV series that has been streaming services all over lately or it could be a successful K-Pop music group. These accomplishments have unavoidably led to significant
retail gains from products, sponsorships and agreements involving intellectual property.

K-pop is strongly rooted in South Korean culture and many fashion elements derive from Korean traditions such as the hanbok (traditional dress). However, the K-pop industry is characterized by its ability to absorb and reimagine global trends.

K-pop fashion often features a mix of Western and Asian styles, creating a unique aesthetic that appeals to a diverse international audience. This generates a cycle of cultural exchange, where elements of South Korean culture are adopted globally, while global influences are also incorporated into K-pop fashion.

Regarding television, Netflix’s phenomenal hit Squid Game, which debuted in 2021, is said to have increased the company’s worth by US $ 1 billion in just two years. South Korea has also had success in the film industry; in 2020, Bong Joon-Ho’s Parasite, directed by him, took home the Best Picture Oscar.

This dynamic environment has nurtured a fertile ground for the growth of homegrown fashion brands.

SPAO, operated by South Korea’s apparel giant E-Land Group, stands out as one of the most common Korean fashion brands. Known for its affordable casualwear, SPAO can be found in almost every shopping district and department store. The brand’s limited edition collaborations with characters like Harry Potter and Crayon Shinchan have garnered attention, earning SPAO the title of the Korean version of UNIQLO. With offerings for both men and women, SPAO provides simple and affordable versions of current trends.

8 Seconds seeks to provide customers with trendy and budget-friendly fashion options, blending elements from H&M and Zara. With a wide range of styles and colours available for both men and women, 8 Seconds boasts a slightly larger size range compared to other brands.

MINJUKIM, a contemporary womenswear designer brand, focuses on fashionable aesthetics targeted at customers in their 20s. Inspired by Korean and Scandinavian culture, Andersson Bell reinterprets and combines contrasting traits to create a unique aesthetic. Its collections feature playful designs, vivid patterns and colour blocking for both men and women.

ADERERROR, founded in 2014, focuses on reimagining everyday garments in exciting and innovative ways. Offering unisex clothing in various designs, ADERERROR experiments with oversized, reversible knitwear and repurposed varsity jackets, turning staples into statement pieces. Hyein Seo, founded by designer Hyein Seo, is a premium streetwear brand known for its edgy and distinctive designs.

Post Archive Faction, launched by Dongjoon Lim and Sookyo Jeong in 2018, is known for its asymmetrical cuts, subtle sportswear inspirations and avant-garde expressions of technical design in menswear. TopTen, akin to a Korean version of Gap, emphasises plain and simple staples for any gender, offering chinos, skirts, T-shirts, tank tops and underwear in muted earth tones.

We11done, founded by Dami Kwon and Jessica Jung in 2015, merges loose-fitting styles with understated sophistication in athleisure and streetwear-inspired silhouettes. Nain, frequently seen on celebrities and TV shows, including K-dramas When the Camellia Blooms and Itaewon Class, offers stylish and professional clothing for women, blending work-appropriate and casual attire. Wonderplace caters to a younger, trendier crowd, offering oversized logo T-shirts, baggy cargo pants and other street style staples alongside a range of other styles and trends. LAP (Los Angeles Project) combines Korean elegance with LA casual, offering a mix of tea dresses, leather jackets, Mickey Mouse T-shirts, tailored suits and accessories for trendy young women.

Other popular fashion brands include Bean Pole, Stylenanda, Chuu, Mixxmix, A Land, Teenie Weenie, E-Land KUHO, J.Estina, Hazzys, Lucky Chouette, System Homme, The Studio K, Basic House, Lemite, Reike Nen, Steve J & Yoni P, Gentle Monster and more.

These brands present a lucrative opportunity for Indian fashion players to introduce them domestically under a franchise or distribution agreement. This would create a bustling fashion scene heavily influenced by Korean pop culture, which has already captured the attention of Gen Z and their peers in India.

South Korea’s apparel retail market is not just about well-known fashion brands; it also boasts a vibrant array of department stores catering to diverse fashion needs. Lotte Department Store, amongst the largest chains in the country, offers a wide selection of apparel brands spanning various price points. Similarly, Hyundai Department Store is recognised for its upscale and trendy apparel offerings. Shinsegae Department Store, with multiple locations nationwide, caters to different tastes and budgets with its diverse brand portfolio. Galleria Department Store, known for luxury and high-end fashion, attracts shoppers seeking upscale apparel experiences. Additionally, AK Plaza, a popular department store chain, focuses on fashion and lifestyle products, featuring both local and international apparel brands.

Beyond department stores, South Korea’s convenience stores are also venturing into the clothing market. Gmarket, a prominent online shopping platform, hosts a wide array of clothing options from various brands and sellers. Homeplus, a chain of hypermarkets, often includes affordable clothing sections alongside its other offerings. CU and GS25, convenience store chains, occasionally stock basic clothing items like socks, T-shirts and pajamas, providing shoppers with convenient options for their fashion needs.

Regional hubs, manufacturing giants

The most concentrated locations for the fashion industry in South Korea include Seoul, Incheon and Gyeonggi-do, which are leading the trend and distribution sector and possess the largest consumer market. The knitting industry is concentrated in the northern part of Gyeonggi-do and Jeollabuk-do.

The northern part of Gyeonggi-do is the world’s top knitting production area and accounts for a large share of the world market for high-quality knitwear (golfwear, sportswear/leisurewear, etc.), while accounting for about 90 percent of the domestic knitting production. It is also the largest consumer of yarn, consuming 60 per cent of the locally produced yarn.

Jeollabuk-do is home to various producers, from the spinning industry to the sewing and clothing manufacturing industry. It also has a production structure mainly based on natural fibres such as cotton yarn, knitting yarn and sewing, amongst others. In terms of products, knitwear (which mainly includes underwear and kidswear) is the mainstay of the textile industry in the region.

In Busan, large-scale apparel companies such as Parkland, Indian, Colping and Greenjoy, operate a sewing factory equipped with automation facilities. Facilities for OEMs are located within a 50 km radius of Busan. The city’s geographical characteristics, its proximity to the sea, ports and an international airport allow the fast introduction of global trends, giving Busan strong logistics competitiveness and ease in promptly responding to global demands. It has an abundant source of technology personnel on standby and new skilled workforce with its universities.

There are several prominent apparel manufacturers in Korea offering a range of specialties and offerings. For instance, Samsung C&T Fashion Group, founded in 1993, leads with innovation and sustainability at the forefront. It conducts extensive consumer research, develops brand strategies and boasts a vast database of fashion trends through Samsung Design Net. E-Land, a prominent Korean fashion conglomerate, is known for its diverse range of casualwear, formalwear and accessories. Its Indian subsidiary is headquartered in Bengaluru. Specialising in woven tops such as shirts, blouses and lightweight garments, the company boasts a production capacity of 5 million pieces per year. Kolon Industries specialises in technical fabrics and performancewear, catering to industries like outdoor and sports apparel with its advanced textile technologies. Shinsegae International Co., Ltd., established in 1980, excels in fashion-forward designs and exceptional quality in men’s and women’s apparel, footwear and accessories. Suy stands out as a global trendsetter in women’s apparel, recognised for its extensive experience in woven and knit clothing production since 1994. Mom Company focuses on providing comfort and style to expectant mothers with a wide range of maternitywear options, from shorts to blouses. Traddin, operating in both China and Korea, serves as an OEM clothing producer, leveraging its factories in multiple countries to deliver personalised apparel globally.

These manufacturers serve as a valuable asset for Indian buying houses and manufacturers to develop a sourcing strategy and access a market that has largely been overlooked.

In a significant development for the India-South Korea partnership, the South Korean textile giant Youngone Corporation plans to set up 11 factories under its Evertop Textile & Apparel Complex Pvt. Ltd., at Kakatiya Mega Textile Park (KMTP) in Telangana. These facilities will primarily concentrate on producing sportswear, knitting, textiles, dyeing, finishing and poly products, potentially generating up to 21,000 job opportunities. Youngone has secured 290 acres of land at KMTP for this purpose.

Exploring the eclectic world of Korean fashion

Korean fashion is an eclectic mix of styles and looks that, when combined, makes for a unique ensemble. Minimalism is a prominent theme in South Korean street fashion. Clean lines, monochromatic colour palettes and simplicity are key elements. The rise of gender-neutral fashion is challenging traditional norms and promoting inclusivity. Oversized clothing, neutral colour schemes and unisex silhouettes are becoming increasingly common, allowing individuals to express their style without conforming to gender stereotypes.

According to the latest report by Daxue Consulting, the 20s to 30s age group demonstrates remarkable sensitivity to fashion trends compared to other demographics. Specifically, women in their 20s scored 62.2 points in trend awareness, while men in the same age bracket scored 56.5 points, marking the highest within their respective genders.

Leading domestic fashion brands are now recognised as trendsetters, shaping the preferences of the MZ Generation, a term unique to South Korea, which encompasses Millennials and Generation Z, constituting 32.5 per cent of the population as of 2021. In South Korea, Gen Z and Millennials are viewed as a single demographic cohort rather than distinct groups. A significant 66.8 per cent of this demographic prefer online shopping over offline channels when purchasing clothes.

In areas known for their vibrant atmosphere and popularity among young people, branded stores with distinct styles such as ‘Hongdae style’ (a street fashion look incorporating oversized tops with wide pants or jogger pants) or ‘Seongsu-dong style’ (more of a retro looking fashion style with a focus on handmade fashion apparel) are prevalent. Brands often select locations based on their desired aesthetic direction, as exemplified by Nike in Korea, which named its concept store ‘Nike Store Hongdae’ to resonate with the ’10s to ’20s age group, given Hongdae’s reputation as a fashion hub for the youth.

One of the driving forces behind the popularity of South Korean street fashion is the emergence of influential fashion bloggers and social media personalities. These individuals, often referred to as ‘influencers’, curate and showcase their unique styles on platforms like Instagram and YouTube, inspiring countless followers around the world. These include the likes of Lee Sung-kyung (15.3 million followers on Instagram), Jessica Jung (12 million followers on Instagram),  Jung Ji-woo (10.8 million followers on Instagram),  Aimee Song (7 million followers on Instagram), Irene Kim (3 million followers on Instagram), Chriselle Lim (1.5 million followers on Instagram), Park Sora (1 million followers on Instagram).

South Korean street fashion has embraced a sense of nostalgia for the ’90s. Vintage sportswear, baggy jeans and chunky sneakers have made a triumphant return to the streets of Seoul. The ’90s aesthetic, characterised by its relaxed and carefree vibe, resonates with the younger generation seeking a break from the constraints of contemporary fashion. It consists mainly of basics such as simple tees, plain sweatshirts and jeans which are then paired with chunky sneakers or other eye-catching accessories for a trendy touch.

South Korean street fashion seamlessly integrates high-end luxury brands with casual, everyday wear. Mixing designer pieces with streetwear staples is a common practice. Accessories continue to be a significant aspect of South Korean street fashion, used to express individuality and creativity. Oversized sunglasses, statement socks and distinctive handbags are employed as personal statements, allowing fashion enthusiasts to experiment with their style.

The Korean beauty industry’s global influence extends beyond skincare and makeup—it also plays a significant role in fashion. The ‘glass skin’ trend, characterised by radiant, flawless complexions, has spurred a preference for lighter, more natural makeup looks. This minimalist approach to beauty complements the clean lines and simplicity of Korean street fashion.

The popularity of South Korean street fashion has paved the way for local streetwear brands to thrive. Hip-hop and street culture from the United States, particularly from African-American communities, have left an indelible mark on Korean street style. This influence can be seen in the adoption of baggy clothing, oversized hoodies and baseball caps, reminiscent of iconic hip-hop artists.

As fashion apparel shifts to a small-quantity production structure, the markets for fashion apparel are expected to be diversified and converged with the growth of highly functional, design-oriented and smart clothes. Meanwhile, the increasing demand for high-performance and eco-friendly textiles and the diversification of apparel consumption are expected to be the driving forces of the fashion market in the future.