South Korea Luxury Goods - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The south korea luxury goods market size was valued at USD 15.28 billion in 2025 and is estimated to grow from USD 17.62 billion in 2026 to reach USD 22.91 billion by 2031, at a CAGR of 5.39% during the forecast period (2026-2031). This report is Segmented by Product Type (Clothing and Apparel, Footwear, and More), End User (Men, Women, and Unisex), and Distribution Channel (Single-Brand Stores, Multi-Brand Stores, and More). The Market Forecasts are Provided in Terms of Value (USD).

South Korea Luxury Goods Market Trends and Insights

Shift Toward Sustainable and Eco-Certified Luxury Goods

Korean consumers are demanding verifiable sustainability credentials, pushing brands to adopt refillable packaging, traceable supply chains, and third-party certifications. Louis Vuitton's La Beaute beauty line, launched in Korea with refillable containers, signals a pivot from symbolic green messaging to operational redesign. The Ministry of Trade, Industry, and Energy allocated approximately USD 27 million in 2025 to raise digital transformation in the textile value chain from 35% to 60% and increase the global share of Korean fashion from 2-3% to 10% by 2030, embedding sustainability metrics into export competitiveness. Younger cohorts, who represent 55% of luxury buyers in a Spanish Gen Z study and 67% of whom would purchase to support an idol's endorsed sustainable product, are treating eco-certifications as non-negotiable table stakes rather than premium differentiators. This shift is compressing margins for brands that rely on opaque sourcing, while rewarding those that publish annual impact reports aligned with ISO 14001 environmental management standards.

Impact of Social Media and Celebrity Endorsements

K-pop idols have become a key driver of customer acquisition for Korean luxury brands, with their influence leading to significant revenue growth that justifies high endorsement fees. For example, BTS collaborations boosted McDonald's Korea sales by 250%. Similarly, Bodyfriend achieved record sales volumes for their recliners through such partnerships. In 2025, Felix Lee's role as a Louis Vuitton muse coincided with a 5.8% rise in sales, reaching 1.78 trillion won (approximately USD 1.26 billion) for Louis Vuitton Korea in 2024. Bulgari took a strategic approach by launching its Seoul creator platform featuring K-pop stars like Lisa and Mingyu. This initiative integrates idols into product narratives rather than relying on short-term campaigns, reflecting the belief that fans' emotional connections (parasocial relationships) can drive sustained purchasing behavior. In 2025, influencer marketing spending in Korea reached USD 489 million. A survey, with 93.4% social-media penetration, showed that 71% of consumers were directly influenced by social media in their luxury purchase decisions. However, the Cha Eun-woo controversy highlights the risks of celebrity endorsements, as a single misstep can harm brand reputation. This underscores the importance of brands maintaining strong crisis-management strategies and diversifying their ambassador portfolios.

Spread of Counterfeit Products

Korea Customs seized 117,000 counterfeit Korean-brand items in 2025, 97.7% of which originated from China, while total counterfeit seizures across all brands reached 102,219 cases in 2024, a 19.9% year-over-year increase, according to the Korea Customs Service. Over the five years from 2019 to 2023, authorities confiscated counterfeits worth 2.09 trillion won (USD 1.48 billion), with Louis Vuitton accounting for 246.4 billion won, Rolex 213.7 billion won, and Chanel 113.5 billion won. A February 2025 operation in Myeongdong seized 3,544 items valued at 20 billion won, and Incheon Customs confiscated 49,487 items between April and June 2024 Korea Customs Service. The Trademark Act amendment, effective May 27, 2025, tightens enforcement on overseas direct purchases and expands liability for e-commerce platforms, yet the OECD estimates global counterfeit trade at USD 467 billion - 2.3% of global imports - suggesting that supply-side enforcement alone cannot eliminate the problem

Other drivers and restraints analyzed in the detailed report include:

• Growth in Disposable Incomes and Wealth Accumulation
• Surge in Demand for K-Luxury Designer Brands
• Economic Volatility and Inflation's Effect on Spending

Segment Analysis

In 2025, clothing and apparel led with a 40.25% market share, driven by demand for seasonal lines and celebrity-endorsed collections. Watches, growing at a 6.45% CAGR through 2031, became the fastest-expanding category. Jewelry and watch counters in department stores recorded strong year-over-year sales growth: Lotte at 35%, Shinsegae at 36%, and Hyundai at 38.4% in Q3 2025, supported by an 8.4% rise in marriages in July and 16 months of sustained growth. Cartier Korea achieved record sales of USD 1.1 billion for the fiscal year ending March 2024. Vacheron Constantin opened a flagship store in Seoul in June 2025, while Hyundai Department Store plans to launch a Chaumet boutique in Pangyo this December. Gold prices surged 80% year-over-year to 245,000 won per gram (USD 168) by February 2026, enhancing the appeal of hard luxury as both adornment and a store of value, a trend capitalized on more effectively by jewelry and watches than apparel.

Leather goods, jewelry, and eyewear are experiencing moderate growth. Leather goods benefited from brand-specific gains: Hermès Korea's sales rose 20.9% to 964.2 billion won in 2024, while Louis Vuitton Korea and Chanel Korea grew 5.8% to 1.78 trillion won, and 8.2% to 1.84 trillion won, respectively. Eyewear is evolving, with Gentle Monster securing a USD 100 million investment from Google in early 2025 to develop Android XR smart glasses, signaling a shift toward wearable technology. Footwear, the smallest segment, remains constrained by limited differentiation and price sensitivity, though Korean brands like Andersson Bell and Kusikohc are gaining traction with oversized silhouettes and gender-fluid designs. The Ministry of Trade, Industry, and Energy's 2025 investment of USD 27 million aims to increase digital transformation in the textile value chain from 35% to 60% and raise Korea's global fashion share from 2-3% to 10% by 2030, boosting footwear and apparel exports.

Complete Report Scope:

• By Product Type
  • Clothing and Apparel
  • Footwear
  • Leather Goods
  • Watches
  • Jewellery
  • Eyewear
  • Other Product Types
• By End User
  • Men
  • Women
  • Unisex
• By Distribution Channel
  • Single-Brand Stores
  • Multi-Brand Stores
  • Online Luxury Stores
  • Other Distribution Channels

List of Companies Covered in this Report:

• LVMH Moët Hennessy Louis Vuitton SE
• Kering SA
• Compagnie Financière Richemont SA
• Chanel SA
• Hermès International SA
• Rolex SA
• The Swatch Group Ltd.
• Burberry Group Plc
• Capri Holdings Ltd
• Breitling SA
• Tapestry Inc.
• iiCombined (Gentle Monster)
• Giorgio Armani SpA
• HYEIN SEO
• Dolce & Gabbana Srl
• Audemars Piguet Holding SA
• Estée Lauder Companies Inc.
• Tod's S.p.A.
• HongShan (We11Done)
• Chopard & Cie S.A

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support