South Korea: luxury goods market size 2022

The value of the luxury goods market in South Korea stood at around 21 trillion South Korean won in 2022, a large increase compared to the previous year. This continued the overall trend of the growing luxury market in South Korea. In 2022, retail sales of foreign luxury goods experienced a further increase, reflecting the growing interest in high-end products.

Spending on luxury goods

The average spending per person in department stores, where high-end products are sold in either brand corners or in the department store’s general items section, has increased significantly during recent years. Luxury brand goods recorded the largest growth among all products sold in department stores,. At the same time, the trend of increasing sales and consumption was not only found in brick-and-mortar stores, but it spilled over into the e-commerce landscape as well. Correspondingly, spending on luxury shopping platforms had almost tripled compared to two years ago.

What luxury items do South Koreans buy?

The interest of South Koreans in all kinds of luxury articles has increased, but handbags were still the most likely to be purchased. They are not only seen as a fashion item but also as a possible investment. This was due to high-end brand items being less likely to lose their value, even during the financially insecure times that developed during the COVID-19 pandemic. Therefore, picking an item with a brand value that would not change for a long time was an important criterion for luxury articles. Also, many South Koreans see luxury goods as an indicator of succesfully climbing the social ladder, and as such they have become a well-established status symbol.