Korea’s textile industry is projected to face continued sluggish business conditions in 2025, with a decline in exports and production output. Data from the Korea Institute of Industrial Economics and Trade and the Korea Federation of Textile Industries, shows, exports in the textile and fashion industry are expected to stagnate by 1.9 per cent Y-o-Y, totaling $10.34 billion. The increase in Chinese textile product dumping has further reduced the market share of Korean textile products both domestically and internationally.
With Donald Trump returning to power, he is set to introduce high tariffs on Chinese products, leading to a rise in Chinese dumping across Southeast Asia, intensifying competition for Korean companies. Additionally, European fashion brands increasingly favor suppliers within Europe to stabilize their supply chains, further disadvantaging Korean manufacturers.
The output of Korea’s textile industry is expected to decline, particularly in the general-purpose sector. The Korea Institute of Industrial Economics and Trade predicts a 1.0 per cent Y-o-Y decline in output, amounting to 52.6 trillion won in 2025. This downturn is attributed to reduced utilization rates and declining production volumes due to weaker demand for domestic textile products.
Despite these challenges, the chemical fiber sector offers a silver lining. Kolon Industries is poised for improved performance in 2025, driven by strong fundamentals and growth in industrial materials. The company’s facility expansion and a recovery in aramid demand are expected to bolster its industrial materials segment. Similarly, HS effectiveness, supported by its global leadership in tire reinforcement, is predicted to perform solidly. Rising tire demand from European customers is likely to further boost this segment.
While Korea’s textile industry faces significant headwinds from global competition, protectionist policies, and shifting supply chain preferences, the chemical fiber sector’s positive outlook highlights opportunities for growth in niche markets. As the industry navigates these challenges, a focus on innovation and specialized products may be key to sustaining long-term growth.
