South Korea Luxury Goods Market Outlook

According to the report by Expert Market Research (EMR), the South Korea luxury goods market size was valued at USD 6.69 billion in 2024. Driven by a growing affluent population, an increasing inclination towards premium products, and the rising influence of global luxury brands, the market is expected to grow at a compound annual growth rate (CAGR) of 4.6% from 2025 to 2034, reaching a value of USD 10.02 billion by 2034.

The luxury goods market in South Korea, encompassing products such as high-end apparel, accessories, automobiles, cosmetics, and jewelry, has witnessed impressive growth over the past few years. As a country with one of the highest purchasing powers in Asia, South Korea’s luxury market benefits from a highly competitive and evolving landscape, where global brands continue to establish their dominance, while local brands also capitalize on the growing demand for premium and personalized products.

The South Korea luxury market is influenced by various factors, including the country's strong economic position, a thriving middle class, and changing consumer preferences that emphasize quality, exclusivity, and craftsmanship. Furthermore, as a hub for global fashion and beauty trends, South Korea also experiences an increase in demand for luxury products, particularly from the younger generation that is increasingly seeking premium offerings in various categories, including fashion, electronics, and automobiles.

Get a Free Sample Report with Table of Contents: https://www.expertmarketresearch.com/reports/south-korea-luxury-goods-market/requestsample

Rising Affluent Population and Consumer Trends

South Korea’s affluent population is a key driver of the South Korea luxury goods market. The country boasts a high disposable income, particularly among the urban population in Seoul and other metropolitan cities, where luxury spending is concentrated. This affluent consumer base, which includes both well-established older generations and young professionals, continues to drive the demand for high-end products.

In recent years, South Korea’s younger consumers have become increasingly important in the luxury goods sector. Millennials and Generation Z are now among the largest consumer groups for luxury items, with a keen interest in fashion, beauty, and lifestyle products. These generations have been exposed to global luxury brands through various digital platforms and are highly influenced by social media trends, celebrity endorsements, and influencer marketing. Consequently, luxury items are now viewed as symbols of status and personal expression, motivating younger consumers to indulge in premium purchases.

The strong preference for quality and brand heritage has led to an increasing demand for items that represent exclusivity, craftsmanship, and a high degree of personalization. South Korean consumers seek products that not only meet their aesthetic needs but also resonate with their values of prestige and refinement. This trend has been particularly notable in categories like luxury fashion, handbags, and watches, where craftsmanship, design, and heritage are highly regarded.

Influence of Global Luxury Brands

South Korea luxury goods market is heavily influenced by international brands that are widely recognized for their iconic status, high-quality offerings, and strong global presence. Major luxury brands such as Louis Vuitton, Chanel, Gucci, and Dior continue to maintain a stronghold in the South Korean market, benefitting from the growing affluence and increasing demand for exclusivity.

The presence of these brands in South Korea is bolstered by their extensive retail networks, including standalone stores, department store counters, and flagship outlets in key locations such as Seoul's Gangnam District and Myeongdong. These areas are renowned for their high-end shopping experiences, attracting both local consumers and international tourists. Furthermore, South Korea’s status as a global fashion and beauty hub has resulted in an increasing number of international luxury brands establishing their presence in the country to tap into the lucrative market.

Additionally, the rapid expansion of online platforms has allowed luxury brands to cater to the growing demand for convenience among consumers. E-commerce has emerged as an essential sales channel, enabling South Korean consumers to easily access global luxury brands from the comfort of their homes. The rise of online luxury marketplaces and exclusive brand websites has significantly reshaped the luxury shopping experience, offering a seamless and personalized shopping journey.

Demand for Luxury Cosmetics and Skincare

In South Korea, luxury cosmetics and skincare have become an integral part of the broader South Korea luxury goods market. The country has long been known for its innovative beauty industry, and this reputation has led to a rise in demand for high-end beauty products, both locally produced and imported.

Korean beauty (K-beauty) has gained global recognition for its focus on skincare innovation, and the luxury segment of this industry is growing rapidly. Many South Korean consumers are increasingly willing to invest in premium skincare products that promise efficacy, scientific formulation, and advanced technology. The demand for luxury cosmetics brands, including both international and Korean brands, is particularly strong among affluent consumers who seek high-quality products with proven results.

Luxury skincare brands such as La Mer, SK-II, and Sulwhasoo are highly sought after for their anti-aging, rejuvenating, and skin-healing properties. South Korean consumers are highly discerning when it comes to skincare, often preferring products with natural ingredients and luxurious textures. This growing preference for high-end skincare has also contributed to the expansion of the South Korea luxury goods market.

Cultural Significance of Luxury Goods

South Korea luxury goods market are not only seen as products of high quality but also as symbols of success, prestige, and cultural identity. South Korean society places great emphasis on social status, and the acquisition of luxury items is often viewed as a reflection of one’s position in society. This cultural factor is particularly prominent in the fashion and luxury automobile segments, where the demand for high-end products is often associated with wealth and success.

In addition, gifting luxury items is a common practice in South Korea, especially during significant occasions such as weddings, holidays, and birthdays. This cultural tradition further drives the sales of luxury goods, with high-end jewelry, designer handbags, and premium electronics being popular choices for gifts.

Furthermore, South Korea’s role as a cultural epicenter, with its influence on global music, entertainment, and fashion, also plays a crucial role in shaping luxury consumption. The global popularity of K-pop, Korean dramas, and Korean celebrities has led to an increase in demand for luxury goods, with many fans aspiring to emulate the style and lifestyle of their favorite stars. This phenomenon, often referred to as the "Korean wave" or "Hallyu," has contributed significantly to the market’s growth.

E-commerce and Digital Transformation

The South Korea luxury goods market has undergone a digital transformation in recent years, driven by the rapid adoption of e-commerce. Digital platforms have become an essential channel for luxury brands, enabling them to reach a wider audience and cater to the convenience-seeking consumer.

The increasing use of mobile shopping apps, online marketplaces, and luxury e-commerce websites has provided a seamless shopping experience for South Korean consumers. These platforms offer everything from product discovery and virtual try-ons to personalized recommendations and home delivery services. The rise of online shopping has also made it easier for international luxury brands to enter the South Korean market without needing a physical store presence.

Social media has further amplified the South Korea luxury goods market digital transformation. Platforms such as Instagram, YouTube, and Naver have become important tools for luxury brands to engage with consumers, showcase their products, and drive sales. Influencers and celebrities continue to play a significant role in promoting luxury items, influencing purchasing decisions and shaping trends.

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

Challenges and Opportunities

Despite the positive outlook for the South Korea luxury goods market, several challenges exist. The market is highly competitive, with both global and local brands vying for the attention of affluent consumers. Additionally, changing consumer preferences, particularly among younger generations, require brands to constantly innovate and adapt to new trends and expectations.

However, these challenges also present opportunities. The growing demand for sustainable luxury, ethical production, and personalized services offers avenues for brands to differentiate themselves. Furthermore, as e-commerce continues to expand, the potential for luxury brands to reach new consumers across the country remains significant.