FASH
ION
& B
EAU
TY
FASHION & BEAUTY
INVESTMENT OPPORTUNITIESIN KOREA
KOTRA자료 17-062
Fashion04 Industry Overview Definition of the Industry Status of the Industry Competitiveness of the Industry Prospect for the Industry
13 Locational Competitiveness Status of Fashion Industry Location Conditions and Benefits of Fashion Industry Location
17 Policies, Cost and Success Cases
Government Policies and Related Laws Cost Success Cases of Foreign Investment
22 Related Companies and Associations
Beauty27 Industry Overview and Locational Competitiveness Overview and Status of the Industry Locational Conditions and Benefits 33 Policies, Cost and Success Cases Government Policies and Incentives Cost Success Cases of Foreign Investment
39 Related Companies and Associations
41 Relationship with Other Industries
Contents
Most figures in this report are converted from KRW into USD based on yearly average exchange rates. But growth rates (e.g. CAGR and YoY growth rate) are calculated based on KRW to prevent any distortion caused by changes in exchange rates.
FASHION & BEAUTYI N V E S T M E N T O P P O R T U N I T I E S I N K O R E A
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4FASHION
01 INDUSTRY OVERVIEW
I. FASHION
5 INDUSTRY OVERVIEW
Definition of the Industry
“Fashion” refers to the popular and personal practice of style in clothing, accessories, and behaviors, which are
accepted and popularized by the public during a particular place and time.
•���� In this report, the fashion industry is defined as a manufacturing industry that covers subjects related to apparel
such as yarn (as a finished product mainly made up of fiber), knitted/woven goods, dyeing processing, apparel
manufacturing, accessories, and clothing subsidiary materials.
Fashion as a highly value-added, knowledge-intensive industry.
•���� Fashion goods have practical and aesthetic values. The former centers on the physical aspect of stability,
comfort and functionality, while the latter focuses on aesthetic value and design.
- Along with practicality, fashion goods has been increasing its added value given the strengthening of brand
popularity, visual beauty, self-satisfaction, trends, design, and materials.
Fashion trends spread faster with single cycle.
•���� A trend can catch on globally much quicker nowadays.
- The reasons behind this include the development of communication thanks to the Internet and satellite
communication, the advancement of mass media, and the growing number and diversification of people with
higher income levels.
- In addition, fashion products are highly susceptible to seasons and trends, thus making their life cycle short
while bringing in continuous demand. This creates sustainable growth for the industry as consumers and
preferences diversify, so new products are developed to meet the changing needs of customers.
Status of the Industry
Status of the Global Market
A sharp change in the fashion industry’s consumer pattern.
•���� Consumer demand patterns have become more complicated, especially due to the growing gap between
increased consumption caused by higher income and rational consumption caused by the economic recession.
Other reasons include the demand for individuality and personalized fashion, the expansion of life-enriching
consumption such as leisure and cultural activities, the increase in online purchases, the aging population, and
the shift of core consumers.
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- With this polarization, a variety of brands are expanding into the global market, from high-end luxury brands,
such as Burberry and Louis Vuitton, to mid to low-end SPA brands, such as Zara, H&M, and UNIQLO, which have
a strong advantage in design, planning, and distribution.
- While global brands are competing in domestic and overseas markets, the competition in global production
is further intensifying through strengthened production and technological power. This is a result of increased
foreign investment into China and Southeast Asian countries.
The global fashion market has achieved an average annual growth rate of 4.2% between 2009 and 2013,
reaching USD 1.54 trillion in 2013. The market is expected to grow at approximately 4% annually until 2020.
•���� By clothing type, the womenswear market is worth USD 638.1 billion, accounting for the largest share in the
total market at 41.5%. Menswear accounts for 27.6%, and children's clothing for 14%.
- Products with newly converged technology are growing at a high rate. The “smart” trend is not only being
rapidly developed in clothing that integrates IT technology but also in the production and fashion distribution
process as well.
Scale of Fashion Market by Clothing Type (2013) (USD 100 million, %)
Classification Total Womenswear Menswear Kids wear Shoes
Scale 15,360 6,381 4,232 2,162 2,584
Share 100.0 41.5 27.6 14.1 16.8
Source: Market Line, 2014
Growth Trend in Global Fashion Market (USD billion)
2009 2010 2011 2012 2013
1,600
1,550
1,500
1,450
1,400
1,350
1,300
1,250
1,200
1,150
1,306
1,355
1,418
1,4791,536
Source: Market Line, 2014
•���� By region, the fashion market in America is worth USD 560.6 billion, accounting for 36.3% of the total fashion
market, while Europe accounts for 33% with USD 507.6 billion, and the Asia Pacific region for 27.2% with USD
417.8 billion.
- By country, the market size of the United States stands at USD 445.7 billion (29.0%); China at USD 194.1 billion
(12.6%); Japan at USD 116.0 billion (7.6%); Russia at USD 82.7 billion (5.4%); and South Korea at USD 31.8 billion
(2.1%).
7 INDUSTRY OVERVIEW
Status of Fashion Market by Continent (2013) (USD billion)
U.S.A445.7 Europe
507.6
Brazil50.5
Russia82.7
China194.1
Japan116
Korea31.8
Mexico 8.4India 18
Singapore 3.3
Taiwan 7.9
Austrailia 19.6
Americas 560.6
Asia pacific417.8
Source: Ministry of Commerce, Industry and Energy, Report on the 2014 Korean Fashion Market; requoted (Source: Market Line)
Status of Domestic Market
The domestic fashion market continues to grow slightly despite uncertainties like the sluggish domestic
demand.
•���� The focus of the fashion market is shifting from the sportswear market to the casual wear market, while casual
wear, menswear, womenswear, and underwear are showing consistent growth.
Fashion Market Scale in 2016 and 2017 (USD million, %)
Clothing Type 2016(e) YoY 2017(p) YoY
Casual wear 11,438.1 5.40 12,246.4 6.40
Sportswear 6,059.5 −7.9 5,958.8 −2.3
Shoes 5,361.1 −5.9 5,313.5 −1.5
Menswear 3,991.0 11.80 4,268.6 6.30
Womenswear 3,120.5 2.80 3,363.3 7.10
Shoes 2,153.1 3.60 2,208.4 1.90
Underwear 1,774.9 13.60 1,972.7 10.40
Kids wear 1,051.3 8.90 1,066.2 0.80
Fashion market 34,949.5 1.80 36,397.8 3.50
Source: Korea Federation of Textile Industries(KOFOTI)
- The growth of the domestic fashion market is also attributed to the growth of online and mobile shopping;
the diversification of new distribution channels, such as multi-platform shopping; and the diversification of
consumers, which include the youth, men, and the elderly.
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Production in the domestic fashion industry increased between 2010 and 2014 because of the continued
growth in domestic demand and export volume. However, in the short term, production volume has been
on the decline since 2012 because of worsening domestic production conditions and weakening demand for
locally produced goods.
•���� As a result, a growing importance of aesthetics in product designs, the continued growth of SPA brands,
and increased exports of "Korean wave" content serve as positive factors for domestic production. However,
production has somewhat dwindled as the growing demand in the domestic market is involved more with
imported products than domestic ones.
Production Trend in the Fashion Industry (USD million, %)
Clothing Type 2010 2011 2012 2013 2014 CAGR(10-14)Share
Chemical fibers 3,912 4,557 5,021 5,148 4,945 9.1 5.2
Yarn fibers 2,850 3,208 3,306 3,566 3,449 6.4 4.1
Woven goods 5,497 7,109 7,445 7,294 6,385 11.8 3
Knitted goods 3,921 4,051 4,405 4,825 3,644 6.7 -2.6
Dyed products 2,561 2,479 2,726 2,679 2,622 4.8 -0.2
Clothing materials 18,740 21,404 22,903 23,511 21,044 38.8 2.1
Fashion apparel 24,689 27,677 37,826 35,949 33,200 61.2 6.8
Total 37,480 42,808 45,806 47,023 42,089 100
Source: The Bank of Korea, Input-Output Table, Annual report
•���� Looking at the changes in the production structure of fashion apparel, the share of shirts and workout clothes
increased the most with 28% of the total production in 2014. This is due to the rise in the number of consumers
who are interested in leisure and health, as well as changes in lifestyle. In addition, the boundary among the
types of clothing such as casual style in sportswear and outdoor wear has blurred.
- While the share of women's suits declined slightly, male suits accounted for 19% of the total, because of the
increased interest in fashion among men. Due to better quality and increasing prices, the shares of infant
clothing increased by 2.9% in 2014 despite the low birth rate.
Production Structure for Fashion Apparel (%)
Year Men's Suit Women's Suit Kids wear Underwear/
Pajamas
Shirts/Workout clothes
KnittedClothing
Clothing Accessories Others Total
2010 16.2 29.1 2.6 3.8 28.4 8.2 6.0 5.7 100.0
2011 19.4 28.6 1.9 3.8 25.8 8.8 6.5 5.2 100.0
2012 10.0 36.7 3.0 3.6 27.9 7.2 5.7 5.8 100.0
2013 19.5 26.9 2.2 3.6 27.4 10.3 5.7 4.4 100.0
2014 18.8 25.3 2.9 3.9 28.1 10.0 6.0 5.1 100.0
Source: Statistics Korea, Mining and Manufacturing Survey, Annual
9 INDUSTRY OVERVIEW
•���� While the export of fashion apparel increased by 4.4% since 2010 because of the rising popularity and
recognition of Korean brands brought about by the Korean Wave and improved product competitiveness,
clothing materials like textiles and fabrics, showed a downward trend.
- The increased export volume of such fashion apparel was attributed to export growth in countries influenced
by the Korean Wave such as Vietnam (24.2%), Taiwan (16.0%), Indonesia (10.8%), Myanmar (9.34%), and China
(3.2%).
- In particular, exports to Japan, which accounted for the largest portion of fashion apparel in 2010, grew by
1.5% between 2010 and 2016, while exports to Vietnam surged by more than 20% during the same period.
Meanwhile, exports to China increased by 3.5%, as its major export items changed from apparel parts to
finished apparel. As a result, China surpassed Japan to become Korea's first or second largest fashion export
destination.
- However, fashion apparel imports grew rapidly because of the increase in the reimport of mid to low–priced
foreign products and the rise in the import of high-priced products from advanced economies, which resulted
in the rapidly expanded trade deficit.
Export and Import Trends in the Fashion Industry (USD million, %)
IndustryExport Import Trade Balance
2010 2016 CAGR(10-16) 2010 2016 CAGR
(10-16) 2010 2016
Textile materials
1,109 1,125 0.2 245 203 −3.1 864 922
Fibers 1,580 1,314 -3.0 2,238 1,862 −3.0 -658 −548
Textile 8,464 7,821 -1.3 1,647 1,838 1.8 6,817 5,983
Fashion apparel
1,462 1,896 4.4 4,247 8,331 11.9 −2,785 −6,435
Total 12,615 12,156 -0.6 8,377 12,234 6.5 4,238 −78
Source: Korea International Trade Association, kita.net
Status of Foreign Direct Investment in the Industry
Foreign direct investment in the Korean fashion industry has somewhat slowed down since 2013 but remains
stable.
•��Unlike in the past when global fashion companies preferred Japan or Hong Kong as their base for entering the
Asian market, they recently preferred to go straight to the Korean market for Chinese and Korean consumers.
Foreign Investment Trend in the Fashion Industry (Textiles/Fabrics/Clothing) (no. of cases, USD million)
Classification 2008 2009 2010 2011 2012 2013 2014 2015
Cases 19 20 28 17 29 16 15 15
Amount 86 55 74 10 316 51 35 363
Source: The Ministry of Trade, Industry and Energy, Statistics on Foreign Direct Investment, based on notification
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However, foreign investment tends to be concentrated more on the distribution of global fashion brands than
on apparel manufacturing, and it mainly includes joint ventures with global SPA brands such as UNIQLO and
Zara.
•���� Burberry and Gucci are 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.
Major Foreign Investment Companies in the Fashion Apparel Sectors
Company Entered Sectors Foreign
Investment First Registered
Major investing countries
Sales in 2016 (KRW billion)
FRL Korea(UNIQLO)
Wholesale of shirts and others (46413) 2004 Japan 1,117
ZARA Retail Korea Wholesale of shirts and others (46413) 2008 Spain 290.5
H&M Hennes & Mauritz KoreaRetail sale of shirts and other clothing
(47416)2009 Sweden 156.8
Gucci Korea (Ltd.) Wholesale of goods (46800) 1998 Netherlands242.5(2013)
Burberry Korea Wholesale of shirts and others (46413) 2002 UK 251.2
Source: The Ministry of Trade, Industry and Energy, Information on Foreign Investment CompaniesNote: ( ) Indicates HS Code
Competitiveness of the Industry
Global Market Share
Korea's export market share of fashion apparel continues to decline because of lowered production
competitiveness such as rising labor costs in Korea, emerging competitors, and expanding overseas production.
•���� The export of Korean fashion apparel accounted for 7.3% of the world's export market in 1990, ranking 5th, but
its share fell to 0.5%, ranking 30th in 2014 because of the increased production and the export from emerging
countries such as Bangladesh, Vietnam, and India.
Apparel Export Market Share of Major Countries (%, USD million)
Rank1990 2000 2014
Country Market share Country Market share Country Market share
1 Hong Kong 14.2 China 18.2 China 38.6
2 Germany 13.8 Hong Kong 12.2 Italy 5.1
3 Italy 10.9 Italy 6.8 Bangladesh 5.1
11 INDUSTRY OVERVIEW
Rank1990 2000 2014
Country Market share Country Market share Country Market share
4 China 8.9 Mexico 4.4 Hong Kong 4.2
5 South Korea 7.3 US 4.4 Germany 4.1
6 France 4.3 Germany 3.7 Veitnam 4.0
11 South Korea 2.5
30 South Korea 0.5
Total exports amount
108,129 197,903 483,280
Source : World Trade Organization
•���� However, as the backbone of fashion apparel, the share of textile materials for apparel in the export market
is 35.6% in 2014 for China, 5.8% for India, 4.9% for Germany, 4.6% for the US, 4.4% for Italy, and 4% for
Turkey, followed by 3.8% for Korea, ranking seventh in the global export market, which shows relatively high
competitiveness.
Technology Competitiveness
The US and Europe have the highest level of production technology for raw materials and new applications,
while Japan is the strongest in commercialization technology. Korea is ahead of China overall, but the gap is
narrowing rapidly.
Korea has a gap of 1.5 years in terms of technology for fashion apparel compared to the highest level in the
world.
•���� Europe is number one in the world in terms of culture and design as well as the development of luxury brands
for traditional technology, high-speed inkjet printing technology, and dyeing processing technology, while the
US is the best in product planning and biz model development technology.
Korea has a gap of 2.2 years in terms of fashion apparel and living fabric materials, compared to the highest level
in the world.
•���� The US is the world's best in the fields of safety protection, sports leisure, and smart textiles, while the EU is the
strongest in the field of interior textiles. With this, Japan is the most competitive in eco-friendly, highly sensitive,
and highly functional textiles.
Comparison of Technology Level by Area (score, year)
Category TechnologyTechnology Level Technology Gap
Korea US Japan Europe China Korea US Japan Europe China
Fashionapparel
Fashion apparel 86.3 90.4 92.1 100 71.9 1.4 0.8 0.7 0.0 2.8
Innovative process 85.6 93.8 100 92.5 76.1 1.5 0.6 0.0 0.7 2.6
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Category TechnologyTechnology Level Technology Gap
Korea US Japan Europe China Korea US Japan Europe China
Fashion apparel / textile
materials for living
Eco-friendly, highly sensitive, highly functional textile
85.1 94.8 100 97.2 71.4 1.5 0.6 0.0 0.3 2.9
Textile for safety protection
78.1 100 94.5 95.3 68.3 2.2 0.0 0.6 0.5 3.2
Smart textile 81.0 100 95.6 94.7 68.3 1.9 0.0 0.5 0.5 3.2
Interior, well-being textile
84.8 93.6 97.8 100 71.4 1.5 0.5 0.0 0.0 2.8
Sports, leisure textile 88.0 100 95.8 99.5 73.4 1.2 0.0 0.0 0.0 2.8
Source: 2013 Report on the Industrial Technology Level, KEIT
Prospect for the Industry
The global textile demand in 2013 stood at 90 million tons and was worth USD 1.8 trillion. By 2020, it will grow at a CAGR of 3.2% by 2020 in terms of quantity. (Source: Fiber Organon, 2014, WTO, 2013, Capital Markets Day 2014, Lenzing)
•���� In terms of quantity, it is comprised of 54% for clothing, 28% for living, and 18% for industrial fiber. (Source: Estimated based on Capital Markets Day 2012 and 2013, Lenzing, Transparency Market Research, 2013)
•���� The global fashion apparel market volume in 2013 was estimated to be worth USD 1.33 trillion, and it is expected to show an annual growth rate of about 4% by 2020.
(Source: Market Line 2014)
- As the market boundaries between countries fall and the O2O business strategy linking online and off-line converge, the globalization and centralization of the supply chain from production to distribution is being accelerated.•���� The global market for textile materials for apparel amounted to about 9.69 million tons and was worth about
USD 60 billion in 2012. The market will grow at an average growth rate of 3% per year in terms of quantity. While Japan, the EU, and the US are leading the market, Korea and China are close behind.
(Source: Transparency Market Research, 2013)
The Korean fashion industry is also expected to grow steadily with progress in diversification, segmentation, and integration along with increasing demand. •���� Korea has a balanced production base in the upstream, midstream and downstream industries. It possesses
world-class synthetic fiber materials companies and infrastructure, and has the potential to utilize convergence
technologies such as IT and Nano Technology (NT).
- Meanwhile, the increasing demand for high performance and eco-friendly textiles, as well as consumer preferences for high quality, unique and diverse clothing are expected to be a driving force of the growth of the fashion market in the future.
- As fashion apparel shifts to a diverse-type, small-quantity production structure, the markets for fashion apparel are expected to be diversified, segmented, and converged such as eco-friendly, highly functional, design-oriented, smart, and highly sensitive apparel.
13 LOCATION COMPETITIVENESS
02 LOCATION COMPETITIVENESS
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Status of Fashion Industry Location
The most concentrated locations for the fashion industry in 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 the northern part of Jeolla-do. •���� The northern part of Gyeonggi-do is the world's top knitting production area, and accounts for about 40% of
the world market for high-quality knitwear (golf wear, sportswear/leisure wear, etc.), while accounting for about 90% of the domestic knitting production. It is also the largest consumer of yarn, consuming 60% of the locally produced yarn. •���� The northern part of Gyeonggi-do has the world's only short-term delivery (within one week) production
system, and all production processes from yarn to post-processing are done in the region, providing an advantageous structure for new product development and commercialization. •���� The northern part of Jeolla-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 fibers such as cotton yarn, knitting yarn, and sewing, among others. In terms of products, knitwear (which mainly includes underwear and kids wear) is the mainstay of the textile industry in the region.
Location of Korea Fashion Industry
North Gyeonggi-do:KnitGyeonggi, Incheon: Fashion apparel
Seoul: Fashion apparel
Chungcheongnam-do: Jacquard
Jeollabuk-do: KnitBusan: Woolen fabrics
Gyeongsangnam-do (Jinju):Silk
Daegu: Textiles
Gyeongsangbuk-do: Synthetic fabrics
Capital Area Gangwon-
do
Daegu and Gyeongsangbuk-do
Chungcheong-do
Busan and Gyeongsangnam-do
Jeolla-do
The jacquard industry in Chungcheongnam-do is mainly occupied by companies that develop fashion and home interior products using jacquard. •���� To develop jacquard products, a variety of labor-intensive work, such as material development, design, and
product planning, is required. Korea has a great deal of design database and colorway tools, which makes a strong foundation for jacquard development.
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
15 LOCATION COMPETITIVENESS
to global demands. It has an abundant source of technology personnel on standby and new skilled workforce with its universities.
In the Daegu and Gyeongbuk region, the production base has sharply decreased because of bankruptcy and the restructuring of marginal firms until 2005; however, the textile production base has remained stable since 2006.•���� As the largest textile and chemical fiber center in Korea, it is the country's leading textile exporter.
The Gyeongsangnam-do and Jinju areas account for 80% of the domestic silk production, occupying more than 70% of the market.•���� By shifting its production from OEM to ODM, a direct production method, it is paving the way for the expansion
of a sales channel from the local market to export destinations and its development of highly sensitive materials for various purposes from products mainly focused on traditional Korean dress ("Hanbok") and ties. It is also focusing on brand marketing by shifting from fabric-oriented to finished product brands.
Conditions and Benefits of Fashion Industry Location
To promote foreign investment, specific areas, such as foreign investment zones, free trade zones, free economic
zones, and complexes exclusively for components and materials, have been designated. Companies can also receive various benefits and incentives in these regions.•���� Among them, foreign investment zones and free economic zones are closely related to the fashion and beauty
industries.
The foreign investment areas are classified into three types: complex (23), individual zone (75), and lease zone (4). Benefits include tax reduction, rent discount, etc.
Among 23 complex-type foreign investment areas, Gumi (textile, fabrics) is the most highly concentrated area for the fashion industry.
Incentives for Lease of Government-owned Land
Eligible appplicant Rent discount Note
1. Companies in individual-type foreign investment zone. 100% * Only for government-owned lands according to, - the National Property Act; - the Public Property Act; - the Law on Operation of Public Organizations.
* For joint ventures, - foreign investment should account for more than 30% of its shares; - or the largest stakeholder should be a foreigner.
2. Business over USD 1 million requiring highly advanced technology & Industrial support service business.
100% for foreign investment zones.50% for industrial complexes.
3. Manufacturing business over USD 5 million.
In Foreign Investment Zone, - 100% for parts and material; - 75% for others.In Industrial Complexes, 50%.
4. Manufacturing business over USD 2.5 million.
By no. of regular employees, - 100% for over 200; - 90% for over 150; - 75% for over 70.
* Private contract is possible
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Incentives for Tax Exemption
Eligible appplicantTax exemption
National tax Local tax Customs
1. Business requiring highly advanced technology or industrial support service business.
100% for 5 years, 50% for 2 years
100% (maximum 15 years by the laws of the local government)
* 7 years-type- exemption for customs, individual consumption, and value-added tax for 3 years.
* 5 years-type- only customs are exempted.
2. Companies in individual-type foreign investment zone.
100% for 5 years, 50% for 2 years
"
3. Complex-type foreign investment zone. -Manufacturing business over USD 10 million. -Logistics business over USD 5 million.
100% for 3 years, 50% for 2 years
"
Source: Korea Industrial Complex Corporation
Exemption of corporate tax, income tax, customs tax, acquisition tax, and property tax for foreign investment firms in the free economic zones•���� In addition, for 10/1,000 of the government-owned land, lease is permitted for 50 years, and rent can be
reduced by 50%–100% according to the local government ordinance. •���� In particular, for the Daegu-Gyeongbuk Economic Freedom Zone, support will be concentrated on the fashion
design sector.
Benefits for Foreign Investment Companies in Free Economic Zones
Tax type Details of Reduction Condition for Reduction
National Tax
Corporate TaxIncome Tax
Five-Year Tax Reduction. •�For�three�years:�100%�exemption.•�For�the�next�two�years:�50%�reduction.
Manufacturing business: Over USD 10 million.
7-Year Tax Reduction. •�For�five�years:�100%�exemption.•�For�the�next�two�years:�50%�reduction.
Manufacturing business: Over USD 30 million.
Customs 100% exemption for five years. Limited to imported capital goods.
Local TaxAcquisition Tax 100% exemption for up to 15 years according to laws and regulations of the local government.
Property Tax Reduction for up to 15 years according to laws and regulations of the local government.
Source: Korean Free Economic Zones; KFEZ
17 POLICIES, COST AND SUCCESS CASES
03 POLICIES, COST AND SUCCESS CASES
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Government Policies and Related Laws
Government Policies and Incentives
Project to Develop Global ExpertiseThe project aims to develop small and medium-sized companies with the technological innovation capacity
to become a global professional enterprise by supporting the development of major short-term industrial
technology.
Project to Develop Special Technology for Material PartsThe project promotes the development of new technologies and differentiated products by offering financial
aid for technology development to a consortium that plans to jointly implement planning, technology
development, production and marketing between textile and fashion stream (or between the textile fashion
industry and other industries). The textile fashion stream refers to textile fields used for clothing, living and
industrial purposes.
Project to Develop Key Industrial TechnologyThe project fosters new future industries by offering intensive support for the strategic development of key and
original technologies based on national growth strategies, and creates future growth engines by enhancing
industrial competitiveness of key industries.
Applicable areas include high value–added key technology, source technology and engineering technology that
can have a significant ripple effect and substantially enhance industrial technology competitiveness within 10
years.
The fields of support, meanwhile, are divided into creative industries and material parts industries. The textile
apparel falls into the rebuilt parts industry. Regarding fashion apparel, support is mainly concentrated on the
development of new materials for yarns and fabrics.
Project to Strengthen Design Innovation Capability
The project fosters specialized global companies and upgrades the design ecosystem by strengthening design
innovation capacity of small and medium-sized firms and exploring new design markets.
Applicable Areas
Classification Purpose and Description
Fostering global companies specialized in design.
Fostering global design (design utilizing) companies equipped with key capabilities to lead the design innovation *A “design utilizing company” refers to a manufacturing business with design capabilities (department exclusively for design or designers).
Developing professional design technology.
Supporting design technology development to commercialize promising technology/products and business ideas of small and medium-sized companies*In case of collaborative development among manufacturing companies and design specializing companies*, it is necessary to submit a royalty contract.
19 POLICIES, COST AND SUCCESS CASES
Classification Purpose and Description
Developing next-generation key design technology.
Supporting the research and development of key and basic design technologies to preoccupy the future market
Building new ecosystem for service design-based manufacturing industry.
Discovering–supporting new business areas by integrating service design based on products※In case of collaborative development among manufacturing companies and design specializing companies*, it is necessary to submit a royalty contract.
* Companies specialized in design according to Article 9 of the Industrial Design Promotion Act
Applicable Laws and Regulations
A verification of origin of textiles and apparel is conducted under the Korea–US Free Trade Agreement: "Free Trade Agreement between Korea and US of America” Article 4.2 (8). Upon the request of the importing party, the exporting party shall carry out the verification for the purpose of enabling the party of import to determine that the country of origin for the textile or apparel product is correct.
For order cancellations and returns, Article 17 (1) of the "Consumer Protection Act on Electronic Commerce etc.” states that consumers can freely cancel the subscription within the period of withdrawal of the subscription or contract termination (normally seven days) regardless of the contents of the e-commerce contract entered into by themselves.
In regards to the common safety standards for hazardous substances for children's commodities, Notification No. 2010-676 of the Korean Agency for Technology and Standards sets the standard for harmful substances only for children's products. This standard applies to metal products that are in direct contact with the skin (nickel used in toys, jewelry, eyeglass frames, sunglasses, clothing, etc.).
The Chemical Control Act protects the lives, property or the environment of all people from chemical substances by preventing harmful effects on public health and the environment from occurring, manages chemical substances appropriately and promptly responds to accidents caused by such substances.
The Act on the Registration and Evaluation of Chemical Substances protects the health of the people and the environment by defining details on the registration of chemical substances, examines and evaluates the products containing chemical and hazardous chemical substances, and designates hazardous chemical substances, allowing people to produce or utilize the information on chemical substances.
Cost
Price and Workforce Supply
The proportion of labor costs relative to the production value of the fashion industry is about KRW 1.7 trillion in fashion apparel, accounting for 9.6% of the total production, while textile materials account for 12.8%.
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•���� For major production costs out of gross output, textile materials account for 65.1%, and fashion apparel accounts for 55.2%. •���� Among the elements of major production costs, the share of the raw material costs is 75.8% for textile materials
and 55.6% for fashion apparel.
•���� In particular, as for fashion apparel, the share of outsourced processing, such as sewing, is very high with 43.3%,
while electricity and fuel costs are relatively high for textile materials because of processes such as chemical fiber manufacturing, knitting, and dyeing.
The share of the sales cost out of the sales of fashion manufacturing companies was the highest for textile materials, being 98% in 2012; however, it gradually improved and dropped to 88.5% in 2015.
Structure of Production Costs for Fashion Industry (2014) (KRW billion, %)
Industry Gross OutputAdded Value Major Production
CostsLabor CostTextile Materials 18,796 (100) 6,551 (34.9) 2,403 (12.8) 12,243 (65.1)
Fashion Apparel 16,130 (100) 7,227 (44.8) 1,541 (9.6) 8,903 (55.2)
Source: Mining and Manufacturing Survey, for companies with more than 10 peopleNote: ( ) refers to the share out of the gross output -The share of the sales cost for fashion apparel also started to improve slightly from 2013, accounting for 60.3% of the total in 2015, and the price competitiveness is relatively higher than that of textile materials
Structure of Major Production Costs for Fashion Industry (%)
IndustryMajor
Production Cost
Raw Material Cost Fuel Cost Electricity
CostWaterCost
Outsourced Processing
Cost
Repairing Cost
Textile Materials 100.0 75.8 3.2 4.8 1.3 14.2 0.8
Fashion Apparel 100.0 55.6 0.1 0.4 0.2 43.3 0.4
Source: Statistics Korea, Mining and Manufacturing Survey, for companies with more than 10 people
Share of Sales Cost to Sales for the Fashion Industry (%)
Industry 2010 2011 2012 2013 2014 2015Textile Materials 87.6 96.4 97.9 91.8 94.4 88.5
Fashion Apparel 56.0 56.5 59.5 67.2 60.0 60.3
Source: Based on KISVALUE, KOSPI
Cost-to-Profit
The fashion industry’s operating profit in proportion to sales is declining to some extent, and profitability is decreasing. As of 2015, the operating profit margin to sales of textile materials is 3.5% and that of fashion apparel is 4.9%.
Trend in Operating Profit Margin to Sales for Fashion Industry (%)
Industry 2010 2011 2012 2013 2014 2015
Textile Materials 7.8 −5.1 −3.2 3.5 −0.7 3.5
Fashion Apparel 7.3 7.7 5.3 4.7 5.3 4.9
Source: Based on KISVALUE, KOSPI
21 POLICIES, COST AND SUCCESS CASES
The profitability of the fashion apparel market in Korea is highly dependent on the distribution structure.•���� The largest share is the distribution fee. For department stores, which account for a large portion of retail sales,
the distribution fee is around 35% for clothing, burdening manufacturers and increasing consumer prices.
In addition, the profitability of the fashion industry is determined by the markup. Selling price is determined by adding a certain level of markup (including distribution fee) to the manufacturing cost. The higher the brand awareness and loyalty, the higher the markup is applied, resulting in increased profitability.
Success Cases of Foreign Investment
UNIQLO
FRL Korea, an operator of UNIQLO Korea is a joint venture between Lotte Shopping and Fast Retailing in Japan, holding 49% and 51% of its shares, respectively. •���� Lotte Shopping's strong distribution network was the most attractive factor behind the joint venture, which
enabled UNIQLO to grow into a leader in the domestic SPA industry.•���� Out of 180 UNIQLO stores, 58 stores are located in Lotte Department Stores, Lotte Outlets, and Lotte Marts.
Because it is a joint-venture corporation, it has a competitive advantage in terms of price over other apparel brands because of the lower rent.
UNIQLO's innovation capability minimizes the cost of all stages from raw materials to sales, simplifies design, attempts to sharply cut down prices by not engraving the logo, and creates a new market by upgrading its materials and products. UNIQLO leads the Korean SPA market with sales of over KRW 1 trillion in Korea in 2015.•���� It diversified the way of opening its stores in Korea, for example, utilizing major distribution channels, such
as department stores, outlets, and marts, or opening roadside stores. It implements strategies to enhance convenience and accessibility by expanding its business in local areas.
Growth Trend of UNIQLO (KRW 100 million)
Operating profit Sales
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
341 726 1,2262,260
3,2805,050
6,9408,954
11,169
16,00014,00012,00010,000
8,0006,0004,0002,000
0
2,0001,5001,0005000
-500-1,000-1,500-2,000-2,500-3,000
11,822
1,0731,564
1,0777686425203511077917
22FASHION
04 RELATED COMPANIES AND ASSOCIATIONS
23 RELATED COMPANIES AND ASSOCIATIONS
Lists of Companies Related to Fashion Apparel
Company Name Major Items Website Location
Namyeung Vivien Women's lingerie www.namyeung.co.kr Yongsan-gu, Seoul
BYC Co., Ltd. Undershirt, lingerie, T-shirt www.byc.co.kr Jeonju-si, Jeollabuk-do
Beaucre Merchandising Womenswear www.ibeaucre.co.kr Geumcheon-gu, Seoul
E-Land Group Kids wear, casual, SPA www.elandretail.com Mapo-gu, Seoul
LF GroupReady-to-wear
clothing, fashion accessories www.lfcorp.com Gangnam-gu, Seoul
Samsung C&T Corporation Fashion Division
Casual, menswear samsungcnt.com Seocho-gu, Seoul
KOLON IndustryFnC Division
Outdoor, golf, women, casual, etc. kolonindustries.comGwacheon-si, Gyeonggi-do
FRL Korea Wholesale and retail of casual wear www.uniqlo.com Jung-gu, Seoul
Adidas Korea Sportswear www.adidas.co.kr Seocho-gu, Seoul
Hyungji Group Women casual www.hyungji.co.kr Gangnam-gu, Seoul
NIKE Korea Sportswear www.nike.co.kr Gangnam-gu, Seoul
Sejung GroupWomenswear, menswear, outdoor,
sports www.sejung.co.kr Geumjeong-gu, Busan
Shinsung Tongsang Men's casual, men's dress suit, SPA www.ssts.co.kr Gangdong-gu, Seoul
Descente Korea Sportswear, golf www.descentekorea.co.kr Gangnam-gu, Seoul
K2 Korea Outdoor www.k2.co.kr Seongdong-gu, Seoul
Blackyak Outdoor www.blackyak.com Seocho-gu, Seoul
F&F Group Outdoor www.fnf.co.kr Gangnam-gu, Seoul
Kumkang Outdoor, golf www.kumkang.com Gyeyang-gu, Incheon
Parkland Menswear www.parkland.co.kr Geumjeong-gu Busan
Sungjoo Group Casual www.sungjoogroup.com Gangnam-gu, Seoul
LS Networks Sports www.lsnetworks.co.kr Yongsan-gu, Seoul
Youngone Outdoor Outdoor www.yooutdoor.co.krChangwon-si,
Gyeongsangnam-do
FILA Korea Sportswear www.fila.co.kr Seocho-gu, Seoul
ZARA Retail Korea SPA www.zara.com/kr Gangnam-gu, Seoul
Shinwon Women's suit www.sw.co.kr Mapo-gu, Seoul
MK Trend Casual www.mktrend.co.kr Gangnam-gu, Seoul
Millet Outdoor, climbing suit www.millet.co.kr Mapo-gu, Seoul
Aioli Women's casual, women's suit www.aioli.co.kr Gangnam-gu, Seoul
Lee and Han Casual, outdoor shop.exrkorea.com Gangnam-gu, Seoul
Baba Fashion Women's suit www.babafashion.com Seocho-gu, Seoul
Giordano Casual www.giordano.co.kr Seocho-gu, Seoul
Indong FN Womenswear indongfn.co.kr Seocho-gu, Seoul
Handsome Womenswear www.handsome.co.kr Gangnam-gu, Seoul
24FASHION
Company Name Major Items Website Location
YK038 Womenswear www.yk038.co.kr Seocho-gu, Seoul
GSGM Casual www.gsgm.co.kr Gangnam-gu, Seoul
Biltmore Menswear www.ibiltmore.com Gangdong-gu, Seoul
The Basic House Casual, kids wear www.basichouse.co.kr Gangnam-gu, Seoul
Demoo Women's www.demoo.com Gangnam-gu, Seoul
Valencia Womenswear www.valencia.co.kr Seongdong-gu, Seoul
Chatelaine Womenswear www.chatelaine.co.kr Gangnam-gu, Seoul
Songjungwan Womenswear sonjungwan.com Gangnam-gu, Seoul
Agabang Company Kids wearwww.
agabangncompany.comGangnam-gu, Seoul
List of Companies Related to Textile Materials
Company Name Major Items Website Location
Hyosung Co., Ltd. Filament yarn www.hyosung.co.krNam-gu, Ulsan
Gumi, Gyeogsangbuk-do
HUVIS Co., Ltd. PSF www.huvis.com Jeongju, Jeollabuk-do
Taekwang Industrial Co., Ltd. Acrylic tow, spandex, nylon, polyester
fabricwww.taekwang.co.kr
Nam-gu, Ulsan, Gyeongju, Gyeongsangbuk-do
TK Chemical Co., Ltd. PF, DTY, spandex www.tkchemi.co.krChilgok, Gyeongsangbuk-do
Gumi, Gyeongsangbuk-do
Seongan Synthetics Co., Ltd. Polyester filament yarn www.sasyn.co.kr Gumi, Gyeongsangbuk-do
Daenong Co., Ltd. Modal cotton, Tencel, modal www.daenong21.comCheongwon-gun,
Chungcheongbuk-do
SG Choongnam Spinning Co., Ltd.
Recycled staple fiber yarnwww.sgchoongbang.
comNonsan, Chungcheongnam-
do
Daehan Synthetic Fiber Co., Ltd. Polyester www.daehansf.co.kr Nam-gu, Ulsan
Samyang Corporation Co., Ltd. Polyester high-strength yarn www.samtangcorp.com Jongno-gu, Seoul
KP Chemtech Co., Ltd. Nylon yarn www.kpchemtech.co.kr Nam-gu, Ulsan
Toray Chemical polyester filament yarn www.toray-tck.com Gumi, Gyeongsangbuk-do
Samheung Co., Ltd. PP filament yarn www.maxlon.co.kr Pocheon, Gyeonggi-do
Shinwon Textile Co., Ltd. Polyester DTY www.chewon.co.kr Gumi, Gyeongsangbuk-do
Dongil Corporation Komasa (combed yarn) 60 www.dong-il.comSeocheon-gun,
Chungcheongnam-do
Jayoung Co., Ltd. Worsted, carded wool, pure wool and
blended wool www.daewon.co.kr
Cheongju, Chungcheongbuk-do
TAIHAN Textile Co., Ltd.Cotton fabrics, knitted fabrics, cotton
yarn, etc.www.thtc.co.kr/
Yeongdeungpo-gu, Seoul
SEONG-AN Co., Ltd. Polyester fabric Buk-gu, Daegu
Duckwoo Corporation Polyester fabricChilgok-gun,
Gyeongsangbuk-do
25 RELATED COMPANIES AND ASSOCIATIONS
Company Name Major Items Website Location
Woongjin Textile Co., Ltd. Two-way stretch (PET, nylon, etc.) www.tcktextiles.com Gumi, Gyeongsangbuk-do
Eulhwa Co., Ltd. Chador fabric www.peacetex.co.kr Gumi, Gyeongsangbuk-do
Chonbang Co., Ltd. Denim, cotton cloth, cotton blend fabric www.chonbang.co.krSeodaemun-gu, Seoul
Yeongam-gun, Jeollanam-do
Jeongsan International Co., Ltd. Laminated fabric www.jeongsan.com Gangseo-gu Busan
Shinhan Spinning Co., Ltd. Circular knitted fabric shinhan.net Guro-gu, Seoul
Ducksan Enterprise Co., Ltd. Brushed cotton knit fabric Pocheon, Gyeonggi-do
Saechang Commercial Co., Ltd. Light knitted fabric www.saechang.co.kr Icheon, Gyeonggi-do
Mogae Textile Co., Ltd. Polyester knitted fabric www.mogaetextile.com Saha-gu, Busan
Young Shin Textile Co., Ltd. Fabric dyeing processing Yangju Gyeonggi-do
Bomyung Industrial Co., Ltd. Poly blend / printed products www.bomyung.co.kr Ansan, Gyeonggi-do
Seong An Dyeing and Finishing Co., Ltd.
Mixed fabric, poly knit Seo-gu, Daegu
Hyundai Wool Textile Co., Ltd. Products with worsted and carded wool www.hyundaitex.co.kr Yangsan, Gyeongsangnam-do
Aztech WB 100% wool dyeing www.aztechwb.co.kr Saha-gu, Busan
Hyundai Special Print Co., Ltd. Printed goods www.specialprint.co.kr Siheung, Gyeonggi-do
Bukwang Co., Ltd. Mesh fabric www.bukwang.com Saha-gu, Busan
SungGwang Co., Ltd. Polyester fabric www.sunggwang.co.kr Jung-gu, Seoul
Seong-An High-twist polyester fabric www.startex.co.kr Songpa-gu, Seoul
Pucheon Co., Ltd. Light knitted and circular knitted fabric www.pucheon.co.kr Gangnam-gu, Seoul
Vision Land Natural fiber, synthetic fiber, soil release
processing www.visionland.co.kr Gangbuk-gu, Seoul
Youngpoong Filltex Skin plus processing www.filltex.com Guro-gu, Seoul
Ducksan EnterpriseOutdoor and active casual knitted
material www.ducksanbj.co.kr Seongdong-gu, Seoul
ShinheungFabric mixed with soft fiber and
memory fabricswww.monotex.co.kr Gangnam-gu, Seoul
Alpha FabricCOTTON-NYLON fabric, jacquard, special
post-processing www.alphafabric.co.kr Gangnam-gu, Seoul
Young Textile Weaving mixed fabric www.youngtex.com Gangnam-gu, Seoul
26FASHION
List of Organizations Related to Fashion Apparel
Company Name Website Major Roles
Korea Federation of Textile Industry
www.kofoti.or.krTo promote the growth and development of the textile industry by seeking ways to promote restructuring and enhance the competitiveness of the textile industry.
Korea Chemical Fibers Association
www.kcfa.or.krTo promote mutual partnership and benefits among member companies by promoting technology development, improvement of quality and productivity, and strengthening the global competitiveness of the Korean synthetic fiber industry.
Korea Textile Trade Association
www.textra.or.krTo respond to the government's policy for promoting the export of textiles and the sound development of the textiles and fabrics trade, and promote the common interests of members.
Spinners & Weavers Association of Korea
www.swak.orgTo expand demand for cotton products, carry out a joint purchase of parts and materials and joint maintenance of facilities, and provide domestic and overseas industrial trends surveys and data.
Korea Textile Development Institute
www.textopia.or.kr
To help Korean textile companies prepare for new trends and improve their competitiveness with application and process technology.
Korean Apparel Industry Association
www.kaia.or.krTo open up the overseas market of the fashion apparel export industry, implement global marketing for exporting goods, conduct global market research, and make a proposal to the government.
Korea Fashion Associationwww.
koreafashion.orgTo protect the interests of members in the high fashion industry and strengthen competitiveness of the Korean fashion industry.
Korea Research Institute for Fashion Industry
www.krifi.re.kr To strengthen the capabilities of the fashion industry, carry out R&D activities, and support companies.
Federation of Korea Knit Industry Cooperative
www.knit.or.kr To strengthen competitiveness of companies producing knitted items.
Korea Institute for Knit Industry
www.knitcenter.re.kr
To support R&D of SMEs, prototype production, fashion and design development, marketing, and incubation for the development of the knit industry.
Korea Sewing Technology Institute
www.sewtec.re.kr
To promote R&D in the sewing industry that integrates the IT field and support prototype production for sewing companies, and provide technical guidance and workforce training.
Korea Textile Machinery Association
www.kotma.orgTo build a system for collaborative research such as key development, development of an automated system, etc., while supporting R&D of small and medium-sized textile machinery companies.
KOTITI Testing & Research Institute
kotiti.re.krTo perform tasks such as test analysis, quality inspection, and R&D on textile products, environmental sanitation, and industrial materials.
Korea High Tech Textile Research Institute
www.koteri.re.krTo develop advanced key technology for the textile business, provide support to textile industry development, cultivate professional production and an operational workforce, support prototype production, and analyze and disseminate technical information.
Dyetec, Korea Dyeing & Finishing Technology
Institute
www.dyetec.or.kr
To develop cutting-edge processing technology in the dyeing processing sector, secure original technology, and provide enterprise-friendly research and development.
FITI Testing & Research Institute
www.fiti.re.kr
To provide comprehensive solutions ranging from tests, inspections, certifications, assessments, education, and consulting to research and development for industrial areas, including fashion apparel and consumer goods; the environment, such as water quality, air, and soil; and other industrial areas, such as automobile, architecture, and electrical and electronic materials, with its professional workforce and advanced testing equipment.
Korea Apparel Testing & Research Institute
www.katri.re.kr To perform test, inspection, and certification for the textile fashion industry.
Korea Color & Fashion Trend Center
www.cft.or.krTo provide key information for product development by collecting, analyzing, and distributing international information on color and systematically accumulating various data such as design and lifestyle.
Korea Garment Industry Cooperative
www.uniform.or.kr
To perform joint sale and joint purchase, provide bidding information, implement a mutual-aid project for small businesses, provide financial support, implement a new product development project, and make a proposal to the government, etc.
27 INDUSTRY OVERVIEW AND LOCATIONAL COMPETITIVENESS
01 INDUSTRY OVERVIEW AND LOCATIONAL COMPETITIVENESS
II. BEAUTY
28BEAUTY
Overview and Status of the Industry
Definition of the Industry
Cosmetics are products applied to the human body for various purposes such as to clean, enhance features, and
maintain or improve the health of skin and hair, among others. It is defined as an object that is used on the body
with a mild impact.
•���� Cosmetics are distinguished from medicine and quasidrugs in that it would be difficult for people to expect
clear results from a short period of use. In 1999, the Korean government enacted the Korean Cosmetics Act and
distinguished cosmetics from pharmaceuticals.
Recently, as functional cosmetics continue to be developed, consumer demand for environmental friendliness
and high functionality, in addition to aesthetic factors and safety, has been increasing.
Status of the Industry
Status of the Global Market
The global cosmetics market, which represents the beauty industry, grew by 4.3% year on year to USD 259.8
billion in 2014 and is expected to grow to USD 330 billion by 2019. (Source: Datamonitor)
•���� Despite the sluggish global economy, the global cosmetics market continued to grow thanks to the high
growth in the Asian market, the expansion of the eco-friendly organic cosmetics market, increased interest in
skin care, and the growth of the men's cosmetics market.
Scale of the Global Cosmetics Market (USD billion)
2010 2011 2012 2013 2014 2015(e) 2016(e) 2017(e) 2018(e) 2019(e)
350
300
250
200
150
100
50
0
314330
299
260285
249231
272240
222
Source: Korea Health Industry Development Institute (KHIDI), Requoted from the Report on the 2015 Cosmetics Industry Analysis
29 INDUSTRY OVERVIEW AND LOCATIONAL COMPETITIVENESS
By region, Europe accounted for 37% of the total market, followed by the Asia Pacific market with 32.1% and the
Americas with 28.2%.
•���� The US market stood at USD 38.7 billion (14.9%); China at USD 26.7 billion (10.3%); Japan at USD 23.5 billion
(9.0%); Germany at USD 15.5 billion (6.0%); Brazil at USD 15.2 billion (5.9%); France at USD 14.3 billion (5.5%);
and Korea at USD 7.4 billion (2.9%).
Scale of Cosmetics Market by Region (USD billion, %)
Region 2010 2011 2012 20132014 CAGR
(10–14)Market Size YoY
Europe 86.9 89.1 91.3 93.5 96.2 2.8 2.6
Asia/Pacific 67.7 71.2 74.9 78.8 83.3 5.7 5.3
North America/ Latin America
61.8 64.8 67.3 70.2 73.3 4.5 4.4
Middle East/ Africa 5.5 5.8 6.2 6.6 7.0 6.0 6.2
Total 221.9 230.9 239.7 249.0 259.8 4.3 4.0
Source: KHIDI, Report on the 2015 Cosmetics Industry Analysis
Status of the Korean Market
Domestic cosmetics production grew by more than 13% thanks to the continued expansion of exports and
rapid growth in the domestic market.
Production Trend of the Korean Cosmetics Industry (USD million, %)
2010 2011 2012 2013 2014
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
-
4,418 4,4965,279
CAGR 13.26,459
7,477
Source: The Bank of Korea, Input-Output Table, Annual
While cosmetics for basic skin care account for the largest portion of the cosmetics market, color cosmetics and
personal care products are growing significantly.
•���� For color cosmetics, cushion products continue to grow because of the rapid changes in trends and the
growing interest in color cosmetics among young people. In addition, the demand for point makeup products,
such as lip tint, lipsticks, and blush, is constant.
•���� The share of personal hygiene products is continuously growing because of the increasing interest in physical
beauty, regardless of gender. Most notably, there is a strong growth in men's care products (including shaving
cream, aftershave, etc.) and a steady rise in body cleansing products.
•���� On the other hand, the growth of functional cosmetics, which are between pharmaceuticals and cosmetics, is
30BEAUTY
prominent. Functional cosmetics, such as wrinkle reducing products, brightening products, and sunscreen, are
growing sharply with 41% of CAGR between 2010 and 2014 with a rising demand from busy consumers in the
modern era.
Trend in Korea's Cosmetics Production Structure (%)
Year Basic Skin Care Cosmetics
Color Makeup Products
Hair Care Products
Body Cleansing Products
Eye Makeup Products Others Total
2010 58.6 12.8 15.4 4.2 2.6 6.4 100.0
2011 61.3 11.7 15.3 4.1 2.6 5.1 100.0
2012 60.4 12.5 14.8 6.5 2.0 3.8 100.0
2013 56.7 14.1 15.3 7.6 2.1 4.3 100.0
2014 56.8 15.9 14.5 7.2 2.3 3.3 100.0
Source: Korea Cosmetics Association, Data on Production of Cosmetics, Annual
The cosmetics distribution structure is largely divided into the premium market consisting of department stores,
duty-free shops, and door-to-door sales, and the mid to low-end market including large discount stores, brand
shops, health and beauty shops, and home shopping and Internet shopping malls.
•���� The recent distribution of the cosmetics industry has been reorganized with the rapid emergence of home
shopping and online malls while brand shops are diminishing. The K-beauty craze, which has enabled new
companies to enter the Chinese market, is also contributing to the change.
•���� As online and home shopping users are increasing, latecomers, such as Aekyung, L&P Cosmetics, and Cover
Korea, grew sharply with their "hit products" on home shopping channels, threatening existing companies such
as Missha and Nature Republic, among others.
•���� The sales of Able C&C (Missha), a representative of the brand shops, was estimated to have declined slightly
from KRW 442.4 billion in 2013 to KRW 400 billion in 2016, while Cover Korea (A.H.C) grew rapidly from KRW
30.0 billion to KRW 400.0 billion for the same period.
Cosmetics sales grew at an annual average growth rate of 28.6% because of the impact of the Korean wave such
as K-beauty, while the import declined because of the domestic economic recession, which changed the country
to an exporter of cosmetics from an importer since 2014.
Korea's Export-Import Trend of Cosmetics (USD million, %)
ClassificationExport Import Trade Balance
2010 2016 CAGR 2010 2016 CAGR 2010 2016
To Global Market 781 3,971 31.1 1,011 1,371 5.2 −230 2,599
China321
(41.1)1,450(36.5)
28.624
(2.4)49
(3.6)12.6 297 1,401
Hong Kong61
(7.8)1221(30.7)
64.80.7
(0.1)6.0
(0.4)43.1 61 1,215
Source: Korea International Trade Association, kita.netNote: ( ) refers to the share of the total export
•���� The export of cosmetics, which nearly reached 30% for the past five years, is attributed to the growth of imports
to China, Hong Kong, and Taiwan.
31 INDUSTRY OVERVIEW AND LOCATIONAL COMPETITIVENESS
•���� In particular, the export of the Korean cosmetics to Hong Kong grew sharply as the country has no tariffs, VAT,
or commodity tax for all imported goods. It is also a tourist destination, with Chinese tourists accounting for
more than half of the total visitors, and serves as a gateway to China. Meanwhile, China continues to set stricter
standards in granting health certificates.
Status of Foreign Direct Investment in the Industry
Foreign investors continue to expand their stock holdings for KOSPI-listed cosmetics companies.
•���� The total market value of the stocks held by foreigners for eight cosmetics companies listed on the KOSPI is
KRW 15.26 billion based on the closing price on April 18, 2016, which is equivalent to 34.4% of the total market
capitalization of the eight companies (KRW 44.39 trillion).
- The share of the stocks held by foreigners for the eight companies: Amore Pacific (32.0%), LG Household &
Health Care (42.3%), COSMAX (17.0%), Kolmar Korea (46.2%), It’S SKIN (4.6%), TONYMOLY (0.9%), Hankook
Cosmetics (0.9%), Dongsung Pharmaceutical (3.8%), and so on.
- The aggregate market price for foreign ownership stocks for cosmetics companies listed on KOSPI jumped by
82.4% from KRW 8.29 billion as of January 2, 2015 to KRW 15.13 billion as of January 4, 2016.
Industry Competitiveness
Share of the Global Market
•���� The world market for cosmetics is expected to reach USD 259.8 billion for 47 countries in 2014, up 4.3% year
on year. (source: Datamonitor Personal Care Market Data, 2016)
- By country, the US accounted for 14.9% of the total market, followed by China with 10.3%, Japan with 9.0%,
Germany with 6.0%, Brazil with 5.9%, France with 5.5%, the UK with 4.6%, Italy with 4.0%, and Russia with 3.1%
and Korea with 2.9%, ranking 10th.
- The market size of Korean cosmetics is rising from 12th in the world in 2011 to 10th in 2014.
Technology Competitiveness
•���� Along with leading domestic brands like Amore Pacific at the frontline, Korean cosmetics are rapidly growing by
leveraging the sharp growth of Korea’s one-brand shops, promoting the development of hit items and product
innovation, fostering brands, targeting China and ASEAN markets, and improving a fast response to trends.
- In addition, Korean ODM companies, such as Kolmar Korea and Cosmax, are also experiencing a rapid growth
because of ODM orders from global cosmetics brands, product development, the emerging Chinese market,
and growing number of orders for Korean companies.
Industry Outlook
The global cosmetics market is expected to grow at a CAGR of 6.4% until 2020, while the domestic cosmetics
industry is also expected to witness fast growth.
32BEAUTY
•���� The global cosmetics market will grow from USD 460 billion in 2014 to USD 6.75 billion (KRW 785.16 trillion) by
2020 at a CAGR of 6.4%. (Source: Research and Market, 2015)
- With strengthening consumer awareness on beauty products, the Asia Pacific region is expected to lead the
cosmetics industry, accounting for 35% of the market, following Western Europe and North America.
•���� The Korean cosmetics industry is expected to continue its growth in the ODM and OEM markets while
alternative distribution channels, such as one-brand shops, online, mobile channels in addition to department
stores, and door-to-door sales, are developing.
- In particular, major domestic brands, such as Amore Pacific, LG Household & Health Care, and Able C&C, are
expected to grow continuously by enhancing their technological prowess, strengthening their premium
product line, launching new brands, and improving brand power to enter the Asian market such as China.
Locational Conditions and Benefits
Regional Status of Cosmetics Industry
The most concentrated area for the cosmetics industry is in the capital area where market and distribution
infrastructure is available; 64% of the total number of businesses and 60% of the total number of workers are
located in the area.
•���� The Gyeonggi-do has the largest number of companies and employees, each taking up 37% of the national
cosmetics market.
•���� Chungcheong-do is the second largest cosmetics market in Korea, with its share of 11% and 23% in the number
of companies and employees, respectively. In particular, in Chungcheongbuk-do, 7% of the companies and
15% of the workers are located.
Conditions and Benefits of the Cosmetics Industry Locations
Chungcheongbuk-do is home to many leading cosmetics companies. In December 2015, the local development
committee decided to establish a complex specializing in cosmetics in Jincheon, Chungcheongbuk-do.
•���� In addition, the area is emerging as a base for cosmetics production as the Global Cosmeceutical Center in
Osong, Chungcheongbuk-do, will launch in April 2017, and the Chungbuk Cosmetics Promotion Center will be
established by 2018. *Osong Global Cosmeceutical Center: It will take charge of overseas export and import certification by conducting R&D and clinical tests for new materials and antiaging cosmetics, accessing and testing the safety of functional cosmetics of the venture SMEs in Chungcheongbuk-do. *Cosmetics Promotion Center: It will house office and research space for 30 venture companies and GMP (Good Manufacturing Practice, standard for good manufacturing and management of food and drug) facilities for basic care, color cosmetics, and hair care products.
33 POLICIES, COST AND SUCCESS CASES
02 POLICIES, COST AND SUCCESS CASES
34BEAUTY
Government Policies and Incentives
Project to Develop Specialized Global Technology
The purpose of this project is to develop small and medium-sized enterprises with technological innovation
capacity into specialized global companies by supporting the short-term development of key industrial
technologies.
Most notably the project seeks to develop specialized technology for the creative industry by upgrading the
consumer goods industry. It also aims to advance the life and consumer goods industry and promote exports by
upgrading household and consumer products and developing technologies related to export business models. * Development of premium household goods: supporting R&D, such as creating convergent products and export business models, to enhance product value and marketability for major items in the daily living industry. ※Living industry: furniture, stationery, glasses, watches, jewelry, leisure goods, bags, kitchenware, beauty products, etc. * Convergence alliance: Supporting a convergence technology development project discovered by operating the Convergence Alliance Division of the Living Industry. * Global premium goods for living: Supporting a technological advancement project selected in a contest among the companies designated as producers of high-end goods for living.
Regulatory Reform Measures
The Korean government has laid out regulatory reform measures to promote foreign investment (May 5, 2015).
In particular, it selected 12 industries, including cosmetics, pharmaceuticals and food, as promising sectors for
investment and identified tasks to improve regulations and systems.
To maximize the effect of the Korean Wave, the government has implemented a plan to establish a base for
highly functional and expensive products. It abolished the requirement to submit medical certificates, such as
the CEO's medical certificate for mental illness, when registering cosmetics business (Cosmetics Act revised, since
2015). The related law required cosmetics manufacturing businesses to submit a medical certificate certifying
that the CEO of the company is not mentally ill or a drug abuser, when registering the business. If the foreign
CEO does not reside in Korea, it is difficult to issue a medical certificate, hindering the company from registering
its business (a foreign doctor's medical certificate is not accepted).
The revised law expands the scope of functional cosmetics (e.g., atopy, etc.), and downgrades the level of the
law to a lower-class regulation to ensure flexibility (Law -> Enforcement Regulation, since 2015). The current
Cosmetics Act restricts functional cosmetics to three areas of whitening, wrinkle reduction and ultraviolet
protection (Article 2 of the Cosmetics Act). This led to many difficulties in developing new products or premium
products in the functional cosmetics area. The law also exempts functional cosmetics for export from the
functionality test. Test exemption of functional cosmetics is included in the list of exemptions for cosmetics,
particularly for exports (Article 30 of the Cosmetics Act revised, since 2015).
35 POLICIES, COST AND SUCCESS CASES
Cosmetics exclusively for exports are exempted from certain duties (Cosmetics Act, Articles 8–16) and are subject
to the regulations of the importing country. However, functional cosmetics were not exempted from screening.
Even though these products are exclusively for export, they were subject to a functionality test following
domestic regulations, resulting in delayed export and excessive cost. Before the revision, it took a long time for
the concerned authority in charge to review the evaluation report on certain functional cosmetics for their safety
and efficacy. After the result, the processing time was reduced when submitting a report on functional cosmetics
and shortened the time for implementation after submission. (May 2015).
Applicable Laws and Regulations
Following laws stipulate matters concerning the manufacturing, import, and sales of cosmetics
Chemical Control Act.
•���� The purpose of the act is to protect the lives, property, or the environment of all people from chemical
substances by preventing harmful effects on public health and the environment from occurring, managing
chemical substances appropriately, and promptly responding to accidents caused by such substances.
Act on the Registration and Evaluation of Chemical Substances
•���� The purpose of the act is to protect the health of the people and the environment by defining details on the
registration of chemical substances, examination, evaluation of products containing chemical and hazardous
chemical substances, and designation of hazardous chemical substances, and allowing the people to produce
or utilize the information on chemical substances.
Other regulations on cosmetics
•���� Regulations on Cosmetics Labeling and Advertising Demonstration
•���� Regulations on Examination of Functional Cosmetics
•���� Cosmetic Safety Information Management Regulations
•���� Standards for Manufacturing Excellent Cosmetics and Quality Control
•���� Guidance on Cosmetics Price Indication
•���� Regulations on Reporting on Production and Import of Cosmetics and Raw Material List
36BEAUTY
Cost
Price and Workforce Supply
The share of labor costs out of the gross output in the cosmetics industry was low at 5.3% in 2014, but the share
of the added value is 58% of the gross output.
•���� The share of the main production cost out of the gross output in the cosmetics industry accounted for 41.3%,
while the largest portion of the main production cost was the raw material cost, accounting for 87.1% of the
total.
•���� Among the elements of the main production cost, raw material cost accounted for the largest portion (87.1%),
and outsourced processing cost accounted for 11.3%.
Production Cost Structure of the Cosmetics Industry (2014) (USD million, %)
Classification Gross OutputAdded Value
Major Production CostLabor Cost
Cost structure 7,372 (100.0) 4,329 (58.7) 389 (5.3) 3,043 (41.3)
Source: Statistics Korea, Mining and Manufacturing Survey, for companies with more than 10 peopleNote: ( ) refers to the share of the gross output
Major Production Cost Structure of the Cosmetics Industry (%, USD million in parenthesis)
ClassificationMajor
Production Cost
Raw Material cost Fuel Cost Electricity
Cost Water CostOutsourcedProcessing
Cost
Repairing Cost
Proportion 100.0 (3,043) 87.1 0.3 0.6 0.2 11.3 0.5
Source: Statistics Korea, Mining and Manufacturing Survey, for companies with more than 10 people
The share of the sales cost to sales for the cosmetics manufacturing companies accounted for 40%, and the share
was gradually dropped to 39.5% in 2015, after reaching 43.6% in 2011.
•���� In particular, the share of cosmetics sales cost has been on the rise along with the growth in the domestic
cosmetic production, but it dropped as the sales increased faster due to the improving business performance
of domestic cosmetics.
Share of Sales Cost to Sales in Cosmetics Industry (%)
Classification 2010 2011 2012 2013 2014 2015
Cost to Sale ratio 40.4 43.6 42.2 41.6 41.6 39.5
Source: Based on KISVALUE, KOSPI
37 POLICIES, COST AND SUCCESS CASES
Cost-to-Profit
The operating profit to sales of the cosmetics industry has steadily risen from 13.5% in 2010 to 15.3% in 2015, leading to a marked improvement in profitability.•���� The improvement in profitability of domestic cosmetics is attributable to steady development of the products
and stable growth of overseas businesses such as in China.
Trend in Operating Profit Margin to Sales for the Cosmetics Industry (%)
Classification 2010 2011 2012 2013 2014 2015
Operating profit 13.5 13.2 13.2 11.3 12.7 15.3
Source: Based on KISVALUE, KOSPI
Meanwhile, the profitability of the cosmetics market in Korea depends heavily on price structure (Source: Korea Distribution Map).•���� Looking at the cosmetics price structure, distributors' sales commissions account for as much as 40% of the
consumer price. When another 25% for advertising and promotional expenses are added, distribution and marketing expenses account for a whopping 65%. •���� In addition, according to data released by the Korea Fair Trade Commission, the sales commissions for the
cosmetics in the department stores are up to over 35%, while those in the duty-free shops account for more than 55% including a broker's fee. •���� In the case of large-sized marts, sales commissions are usually 20%–30%, but vendors' fee, which is normally
7%–10%, is added additionally, while TV home shopping requires about 38% of the sales commissions, resulting in weak profitability for small and medium businesses.
Success Cases of Foreign Investment
Kolmar Korea
On May 15, 1990, KM Korea Co., Ltd. was established as a joint venture with Kolmar Japan Co., Ltd. It then
changed its name to Kolmar Korea in December and registered as a foreign invested company in January 1991.
•���� What drove the joint venture with Kolmar Japan is its R&D capacity. The company invests around 6% of its
annual sales in R&D, sharing technology with the Kolmar Group in the US and Japan. As a result, it has raised its
R&D power to the world-class level.
38BEAUTY
Kolmar Korea was granted a quasidrug manufacturing license in 1992 and was selected by the Ministry of Health
and Welfare in 1994 as a company that meets the CGMP (Standards for Manufacturing Excellent Cosmetics and
Quality Control).
•���� It was listed on the KOSDAQ in 1996, completed the electrical factory in 1997 (color cosmetics), and was selected as a promising export company by the Small and Medium Business Corporation in 1998. It also obtained a patent on manufacturing method and device for multicolored bar-shaped cosmetics.•���� In 2001, it received ISO 9001 certification, and was approved as KGMP (excellent pharmaceutical manufacturing
and quality control standard) compliant company in 2002. In 2007, it established a Chinese corporation. Afterward, it acquired Ecocert certification from the International Organic Certification Authority and LOHAS certification from Korean Standards Association in 2009.•���� In 2010, it was awarded the grand prize in the Korean premium brand technology development category,
and in 2011, it received ISO 22716 International Excellent Cosmetics Manufacturing and Quality Management Certification.
Kolmar Korea has started to make cosmetics through the ODM (Original Development Manufacturing) method, escaping from production by simple subcontractors when OEM production was stabilized to a certain point.•���� It is evaluated as having competitiveness in R&D, planning, design, etc.•���� Kolmar Korea's main business areas in Korea include cosmetics and pharmaceuticals, supplying its products to
160 leading companies locally and abroad including LG Household & Health Care, Amore Pacific, US Johnson & Johnson, Herbal Life, and more.
Kolmar Korea recorded sales of KRW 535.8 billion in 2015, an increase by 16.1% year on year, while the operating profit was KRW 60.7 billion, up by 29.6% year on year. •���� Kolmar Korea has started a new plant in Sejong in June 2016 and started to receive new orders from overseas
clients. As the equipment verification process by major makers is completed in order, its export is expected to increase further.
39 RELATED COMPANIES AND ASSOCIATIONS
03 RELATED COMPANIES AND ASSOCIATIONS
40BEAUTY
List of Related Companies and Associations
List of Companies Related to Cosmetics
Company Name Major Items Website Location
Amore Pacific Co., Ltd. Total cosmetics www.amorepacific.com Jung-gu, Seoul
LG Household & Health Care Co., Ltd. Total cosmetics www.lgcare.co.kr Jongno-gu, Seoul
The Face Shop Co., Ltd. Total cosmetics www.thefaceshop.com Jongno-gu, Seoul
Innisfree Co., Ltd. Total cosmetics www.innisfree.co.kr Yongsan-gu, Seoul
Kolmar Korea Co., Ltd. Total cosmetics www.kolmar.co.kr Seocho-gu, Seoul
Aekyung Co., Ltd. Total cosmetics www.aekyung.co.kr Guro-gu, Seoul
Able C&C Co., Ltd. Total cosmetics www.able-cnc.co.kr Geumcheon-gu, Seoul
CJ Olive Networks Co., Ltd. Total cosmetics www.cjolivenetworks.co.kr Seongnam, Gyeonggi-do
Atomy Co., Ltd. Total cosmetics www.atomy.kr Gongju, Chungcheongnam-do
Nuskin Korea Co., Ltd. Total cosmetics www.nuskinkorea.co.kr Gangnam-gu, Seoul
Etude Co., Ltd. Total cosmetics www.etude.co.kr Jung-gu, Seoul
Nature Republic Co., Ltd. Total cosmetics www.naturerepublic.com Gangnam-gu, Seoul
Cosmax Co., Ltd. Total cosmetics www.cosmax.com Seongnam, Gyeonggi-do
It'S SKIN Co., Ltd. Total cosmetics www.itsskin.co.kr Gangnam-gu, Seoul
TONYMOLY Co., Ltd. Total cosmetics www.etonymoly.com Seocho-gu, Seoul
Skin Food Co., Ltd. Total cosmetics www.theskinfood.co.kr Seocho-gu, Seoul
Boryung Medience Co., Ltd.Baby products, Total cosmetics
www.medience.co.kr Jongno-gu, Seoul
HLMC Co., Ltd. Total cosmetics www.hlmc.co.kr Gangnam-gu, Seoul
Cos Vision Co., Ltd. Total cosmetics www.cosvision.com Suwon, Gyeonggi-go
Johnson & Johnson Co., Ltd. Total cosmetics www.jnj.com Yongsan-gu, Seoul
List of Associations Related to Cosmetics
Name Website Major Role
Korea Cosmetic Association www.kcia.or.krTo perform R&D, reform laws and regulations, and support the development of cosmetics-related technologies and international competitiveness to contribute to the development of the cosmetics industry.
Korea Health Industry Development Institute
www.khidi.or.krTo enhance the international competitiveness of the health industry and improve the public health by performing projects to improve the health industry and health services professionally and systematically.
Korea Specialty Chemical Industry Association
www.kscia.or.krTo implement R&D to develop the fine chemical industry and international agreements in the chemical field.
Korea Cosmetic Industry Cooperative
www.kcic.or.krTo implement joint projects in the cosmetics industry, such as joint purchase, joint selling, and common brand business, and provide support for members to help their business management.
Korea Pharmaceutical Test & Research Institute
www.kptr.or.krTo ensure the stability in quality and establish the distribution order through self-quality control for medicines and cosmetics.
Korea Testing & Research Institute
www.ktr.or.krTo perform comprehensive examination, certification, and technical consulting for all industries.
Dema Pro www.demapro.co.krTo evaluate the safety and efficacy of cosmetics, hair products, quasidrugs, and beauty functional food related to the human skin as a professional dermatology test agency.
IEC Korea www.ieckorea.co.kr
To improve quality and productivity, complement and reduce various risk factors, and review and provide certification services in conjunction with international organizations to ensure international regulatory compliance and sustainable business management.
Ellead www.ellead.comTo evaluate and analyze safety of cosmetics, quasi-drugs, household goods and perform a clinical research.
41 RELATIONSHIP WITH OTHER INDUSTRIES
APPENDIX RELATIONSHIP WITH OTHER INDUSTRIES
42FASHION & BEAUTY
Distribution Industry
Fashion and cosmetics are considered as final consumer goods and have a close relationship with the
distribution industry. They are both expected to observe rapid growth as sales through online channels
continues to rise despite the sluggish distribution market caused by the economic recession and the slowed
trend in consumption.
•���� Online sales have grown at a CAGR of 9.7% over the past five years, leading the growth in the retail sales of
clothing. In 2015, they grew by 14.6% year on year, representing a fast growth rate.
•���� In particular, out of online purchases, purchase via mobile grew by a staggering 55.7% YoY in 2015, emerging as
a hub of the fashion distribution.
•���� On the other hand, the share of the conventional markets, such as department stores, and traditional markets in
the distribution showed a downward trend.
List of Distribution Companies
Category Name Website Location
Department stores
Lotte www.lotte.com Jung-gu, Seoul
Shinsegae www.shinsegae.com Jung-gu, Seoul
Hyundai www.ehyundai.com Gangnam-gu, Seoul
Large-sized marts
Emart www.emartcompany.com Seongdong-gu, Seoul
Homeplus corporate.homeplus.co.kr Gangseo-gu, Seoul
Lotte Mart company.lottemart.com Songpa-gu, Seoul
Shopping centers
Save Zone www.savezone.co.kr Nowon-gu, Seoul
Central City www.centralcityseoul.co.kr Jung-gu, Seoul
Times Square www.timessquare.co.kr Yeongdeungpo-gu, Seoul
IFC Mall www.ifcmallseoul.co Yeongdeungpo-gu, Seoul
Garden 5 www.garden5.com Songpa-gu, Seoul
Techno Mart www.tm21.com Gwangjin-gu, Seoul
Premium outlets
Lotte Premium Outlet www.lotteoutlets.com Jung-gu, Seoul
Hyundai Premium Outlet www.ehyundai.comGimpo,
Gyeonggi-do
Shinsegae Premium Outlet
premiumoutlets.co.kr Gangnam-gu, Seoul
Open markets
Gmarket www.gmarket.co.kr Gangnam-gu, Seoul
Auction www.auction.co.kr Gangnam-gu, Seoul
11th Street www.11st.co.krSeongnam,
Gyeonggi-do
Interpark www.interpark.com Gangnam-gu, Seoul
Social commerce
WEMAKEPRICE www.wemakeprice.com Gangnam-gu, Seoul
Coupang www.coupang.com Gangnam-gu, Seoul
Ticket Monster www.ticketmonster.co.kr Gangnam-gu, Seoul
Shocking Deals deal.11st.co.kr Seongnam, Gyeonggi-do
43 RELATIONSHIP WITH OTHER INDUSTRIES
Category Name Website Location
Integrated shopping mall
GS SHOP www.gsshop.com Yeongdeungpo-gu, Seoul
Lotte.com www.lotte.com Jung-gu, Seoul
CJmall www.cjmall.com Seocho-gu, Seoul
Hyundai Hmall www.hyundaihmall.com Gangdong-gu, Seoul
Shinsegae Mall shinsegaemall.ssg.com Jung-gu, Seoul
AK Mall www.akmall.com Seongnam, Gyeonggi-do
Home&Shopping www.hnsmall.com Mapo-gu, Seoul
Apparel shopping mall
Stylenanda www.stylenanda.com Mapo-gu, Seoul
Naning9 www.naning9.com Jongno-gu, Seoul
Imvely www.imvely.com Geumcheon-gu, Seoul
Niponjjuya niponjjuya.com Seo-gu, Incheon
Bagazimuri bagazimuri.com Gangnam-gu, Seoul
Aura-J www.aura-j.kr Gangnam-gu, Seoul
Supporting foreign investors worldwide
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INVEST KOREA'SGLOBAL NETWORK
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