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Tuesday, 01 September 2026 08:24

South Korean apparel giants target outerwear demand to secure annual margins

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Major South Korean apparel corporations are accelerating their A/W merchandise rollouts, leveraging a resilient first-half department store surge to cement full-year profitability. Industry leaders including Samsung C&T’s fashion division, Kolon FnC, and LF Corp. are deploying targeted marketing campaigns for high-ticket outerwear, such as structured wool coats and technical leather goods. Because warmer seasonal transitions and persistent domestic spending constraints threaten early sell-through rates, executives are prioritizing full-price inventory management over steep discounting to protect operating margins.

Foreign tourism and channel vulnerabilities

The sector’s robust first-half performance - highlighted by Samsung C&T's 16.3 per cent revenue increase and Shinsegae International's return to profitability - was largely catalyzed by an influx of international tourists boosting brick-and-mortar luxury and apparel sales. However, shifting foreign exchange valuations and fluctuating currency rates introduce operational volatility for the upcoming months. Sustaining our growth momentum requires careful control over inventory depth and agile responses to regional foot traffic shifts, notes Park Min-woo, Senior Retail Strategist, Fashion Insight. The challenge is converting transient tourist spending into sustained domestic purchasing power, he adds.

A primary bellwether for Korea’s textile economy

Operating as a premier division of Samsung C&T, the Samsung C&T Fashion Group manages a diverse portfolio of domestic labels and global luxury licenses across South Korea. The company pursues aggressive retail expansion through flagship brick-and-mortar storefronts and high-end department store concessions, complemented by targeted digital commerce platforms. Financially, the division continues to demonstrate strong recovery, anchored by double-digit operating profit expansions and disciplined supply chain optimization. Historically recognized as a pioneer in modernizing South Korea's organized apparel distribution, the enterprise remains a primary bellwether for the nation’s broader textile and retail economy.