Korean luxury goods market booming, says KITA report

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According to the latest statistics published by the Korea International Trade Association (KITA) the local market for high-end luxury goods, of which duty-free shops make up a large share, has showed a sharp increase in the first half of this year.

Korean imports of luxury goods, defined as high-end consumer goods including cars and certain food products, surged 65.5% year-on-year during the period. Imports of fragrances and cosmetics expanded 27.3% and 38.9% respectively, to $16.7m and $225.3m, said the KITA report. Whisky imports grew 23.1% to $100.1m.

Despite this evidence of consumer recovery, the snowballing of luxury imports is viewed negatively in government circles, as falling exports have created a sense of national crisis. The KITA report went on to say that sales of imported shoes and leathergoods also increased by 33.8% and 14.8% respectively, to $65.9m and $16.6m.