Korean-made products in Myeongdong

Kim Joo-won, the main character in the Korean TV series “Secret Garden,” wears a sweatsuit made by an Italian master craftsman. Certain people go mountain hiking in Moncler jackets made in France costing thousands of U.S. dollars. One cannot blame children who judge their friends by the colors of a North Face jacket. The Korean luxury market has grown 12 percent every year to 4.5 billion dollars in 2010. Korean households spend 5 percent of their income on luxury goods, surpassing Japan’s 4 percent. Louis Vuitton bags are even called the national bag of Korea. Knockoffs are also spreading like wildfire in the country.

The world’s largest luxury goods market is the U.S. and No. 2 is Japan. By population, Japan stands out by consuming 23 percent of all luxury goods. Despite slowed demand in the wake of last year’s earthquake, the Japanese love luxury brands. They helped the once-sagging European luxury brands turn around. When the real estate bubble was in place, Japanese consumers crisscrossed Europe to buy luxury goods on the back of the strong yen. Koreans followed suit and now the Chinese are flocking to buy the best money can buy. China’s luxury market is rapidly increasing.

The Japanese, who were the first buyers of luxury brands, are looking to Korean luxury brands. Japanese tourists shun European luxury brands at duty-free shops in Korea and look for inexpensive handmade shoes and bags made by Korean craftsman in Seoul`s Myeongdong district. Handmade bags with traditional Korean patterns and materials are also popular in addition to handmade shoes. The quality is as good as European luxury brands but costs only a third as much.

Korean leather craftsmen are as good as anyone else in the world. Last year, a leather craftsman was arrested for making top-level knockoffs, including those of Louis Vuitton, and exporting them to Japan. Despite his 22 years of experience in making bags, he turned to counterfeit products after his business went bankrupt. Japanese have a craftsmen’s culture and noticed Koreans’ skills first. Handmade goods in Korea could develop into luxury brands if design and brand power are added.

Editorial Writer Chung Sung-hee (shchung@donga.com)