South Korea Luxury Goods Market Outlook
According to the report by Expert Market Research (EMR), the South Korea luxury goods market size attained a value of USD 6.69 billion in 2024. Aided by the growing affluence of consumers, a rising penchant for high-end fashion, luxury automobiles, and premium electronics, the market is projected to grow at a CAGR of 4.6% between 2025 and 2034, reaching a value of USD 10.02 billion by 2034.
South Korea’s luxury goods market encompasses a diverse range of products, from fashion items such as designer apparel, handbags, and footwear, to high-end jewelry, watches, automobiles, and electronics. The growing purchasing power of South Korea’s middle and upper-middle class, as well as a robust appetite for global luxury brands, has driven the demand for premium goods. Consumers are increasingly seeking products that signify status and offer exclusivity, which has further fueled the luxury market’s expansion in the region.
Market Drivers Of Growth
The rapid expansion of South Korea luxury goods market can be attributed to several key factors, including a rising number of affluent consumers, growing globalisation, and the increasing importance of status symbols.
One of the primary drivers of the South Korea luxury goods market is the growing affluence of the population. With a strong economy, rising household incomes, and an expanding middle class, more consumers now have the financial capability to indulge in luxury items. As South Korea continues to experience economic growth, particularly within urban centres like Seoul, demand for high-end goods has surged. South Korea’s increasingly globalised society has also contributed to the luxury market, with consumers exposed to luxury brands from around the world through travel, the internet, and international media. This exposure has led to an increased desire for exclusive and premium products that reflect both personal and social status.
Furthermore, South Korea has witnessed a shift in consumer behaviour, with a growing number of individuals placing a premium on self-indulgence and personal satisfaction. This trend has been particularly evident among the younger generation, with Millennials and Generation Z increasingly viewing luxury goods as a form of self-expression and a symbol of achievement. The “affordable luxury” segment has also gained traction, with consumers willing to splurge on premium products that offer prestige without the steep price tag of ultra-luxury items.
Luxury fashion and accessories remain the largest segment in the South Korean market. High-end apparel, handbags, shoes, and accessories from global luxury brands such as Louis Vuitton, Gucci, Chanel, and Prada are highly sought after by South Korean consumers. The increasing popularity of K-pop and Korean drama culture has further influenced the demand for luxury fashion, with many celebrities and influencers setting trends that drive consumer purchasing decisions.
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Trends in the South Korea Luxury Goods Market
Several trends are shaping the future of the South Korea luxury goods market:
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Sustainability and Ethical Luxury: Consumers are increasingly concerned with sustainability, and this has influenced the luxury goods sector. There is a rising demand for environmentally conscious products, such as sustainably sourced leather, eco-friendly packaging, and transparent supply chains. Luxury brands are adopting more ethical practices to cater to this growing demand.
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Personalisation and Customisation: South Korean consumers value exclusivity and individuality. Many luxury brands are offering personalised and customised products, from monogrammed handbags to bespoke automobiles, to meet the demand for unique items that reflect personal style.
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Digital Transformation and Virtual Luxury: The integration of digital technology into the luxury market is a notable trend. Virtual showrooms, augmented reality shopping experiences, and collaborations with influencers and celebrities on social media platforms are enhancing the consumer experience and driving engagement in the luxury space.
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Growing Popularity of Experiential Luxury: South Korean consumers are increasingly seeking experiences over products. Luxury brands are responding by offering exclusive experiences, such as private viewings, limited-edition products, and unique events that allow consumers to interact with the brand in an immersive way.
South Korea Luxury Goods Market Segmentation
The market can be divided based on product, end use, and distribution channel.
Market Breakup by Product
- Watches and Jewellery
- Leather Goods
- Perfumes and Cosmetics
- Clothing
- Eyewear
- Others
Market Breakup by End of Use
- Women
- Men
Market Breakup by Distribution Channel
- Offline
- Online
Competitive Landscape
The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the South Korea luxury goods market. Some of the major players explored in the report by Expert Market Research are as follows:
- LVMH Moët Hennessy
- Compagnie Financière Richemont SA
- Kering Group
- The Swatch Group Ltd
- Chanel
- ROLEX SA
- Minjukim
- Guccio Gucci SpA
- Chanel
- Prada SpA
- Others
Market Challenges
Despite the robust growth prospects, the South Korea luxury goods market faces several challenges. One significant challenge is the increasing competition from both domestic and international luxury brands. As South Korea becomes an increasingly attractive market for luxury goods, new brands are continually entering the market, intensifying competition among existing players.
Additionally, the rise of counterfeit goods and parallel imports is a major issue within the luxury goods market. While South Korea has strict regulations and enforcement policies against counterfeit goods, the continued growth of online shopping has led to an increase in counterfeit products being sold via unregulated online platforms.
Another challenge is the potential economic slowdown. Although South Korea has shown remarkable economic resilience, global economic uncertainties, such as trade tensions and inflationary pressures, can impact consumer spending on non-essential luxury items. A decline in disposable income or a shift in consumer priorities could negatively impact the growth of the luxury market.
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