South Korea: Italian exports of consumer goods soar

In an increasingly globalized world, South Korea and Italy are united by a connection that goes beyond geographical and cultural differences: the appreciation for Made in Italy consumer goods. An affinity that has transformed Italian products into real must-haves among South Korean consumers thanks to their reputation for quality, craftsmanship and timeless style, giving rise to a constantly growing import phenomenon from the Bel Paese.

In South Korea, this concept has found fertile ground: at the end of 2022, South Korea is the third largest market for Italian exports in Asia, behind China and Japan, for a value of over 7 billion euros exported in 2022. So much so that trade between South Korea and Italy has constantly grown in the last 10 years with the exception of 2020, when it contracted by 3.5%, reaching the record value of 13.1 billion euros in 2022 As mentioned, it is above all exports that are growing, which in 2022 confirmed a trade balance firmly in surplus for the Peninsula, with a surplus of over a billion dollars, the best among the European Union countries after Germany.

In this sense, various Made in Italy sectors have experienced a real boom for Italian exports to South Korea in recent years: here they are presented in detail below.

Italian clothing exports are increasingly appreciated

One of the sectors in which Italy has had extraordinary success in South Korea is clothing. Italian brands like Gucci, Prada, And Versace have become synonymous with elegance and style among South Korean consumers. Just thehigh fashion and luxury they represented over 40% of total Made in Italy exports to the country, with a growth of 24% in the two-year period 2021-22.

The size of the Korean fashion market is estimated at 33.9 billion euros in 2022 with a growth of 5.2% compared to the previous year. The clothing market alone (excluding accessories such as footwear and bags) amounts to 25.1 billion euros. Footwear amounts to approximately 5.36 billion euros, for a growth compared to 2021 of 5.3%, while leather goods remain stable, equal to approximately 2.14 billion euros.

In Asia, Seoul is considered a fashion hub and a leading city in the latest fashion trends. The most important fashion brands try to profit from it, also taking advantage of the popularity of Korea's "Pop" culture (known internationally as HALLIYU), which has numerous followers internationally and acts as a powerful means of disseminating new trends.

Italian Cuisine as a cultural experience

Italian cuisine has long been a mainstay of food culture in South Korea. From pasta dishes and pizza to treats like ice cream and espresso, Italian food is loved by young and old alike. Many Italian restaurants run by Italian chefs have established themselves in South Korea, offering authentic Italian culinary experiences. Italian wine, which has recently set a new export record in the country is another selling point, with growing popularity among Korean consumers. Italian wines, renowned for their quality and variety, are increasingly in demand in restaurants and wine shops across the country. Furthermore, recently, thanks to the increasing number of tourists who have tried true Italian cuisine during a trip to our country, the need for original recipes is increasing.

Even more relevant is the data relating to the rate of food self-sufficiency: currently standing at 45.8%, has been progressively declining since the 1990s, when it exceeded the 70%. In this context, there are therefore ample opportunities for inclusion for Italian food companies, in particular with regards to flour products, almost entirely coming from abroad. That is how Korean food imports from Italy in 2022 reached 500 million euros, certifying Italy as the twenty-first supplier country. However, when we analyze the main Made in Italy agri-food products (olive oil, pasta, cheese, coffee, etc.), Italy in many cases reaches the top three positions with much more significant market shares.

Skin care products: Italian beauty

The Italian focus on beauty and skincare is well known in South Korea, famous for its advanced beauty industry. Italian skin care products have become a popular choice among Korean consumers seeking effective and long-lasting results.

One of the main reasons for this popularity is the reputation of Italian cosmetics for the quality of the ingredients used in its products. Many Italian companies rely on natural ingredients, such as olive oil, lavender extract, thermal water and honey, to create products that deeply nourish the skin and keep it healthy.

Furthermore, Italy is known for its advanced research in the field of dermatology and cosmetology. This has led to the creation of innovative, scientifically proven formulations that address a wide range of skin problems, from acne to aging.

What future developments for exports to South Korea?

The phenomenon of the attractiveness of Italian exports of consumer goods to South Korea is continually growing and promises to have a positive impact on trade between the two countries. The opportunities for Italian companies to expand in South Korea are numerous, and vice versa, South Korean consumers continue to demonstrate a strong interest in what Italy has to offer.

In conclusion, Italy has won the hearts of Korean consumers thanks to its reputation for quality, style and craftsmanship. This mutual affection has created a unique bond between the two countries, which translates into a continuous exchange of goods and cultures. With the promise of further collaborations and investments, Italian companies engaged in these sectors can profit greatly from business relationships with their Korean counterparts.

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