South Korea’s RMG imports expanded by 2.27 per cent Y-o-Y to $5.66 billion during the first six months of 2026. Knitted garment categories led the increase, rising faster than woven items as domestic retailers responded to strong consumer demand for casual wear and technical activewear. Vietnam and China remained the dominant sourcing hubs, leveraging competitive production costs to supply South Korean distribution networks.
Domestic upstream textile mills face export contraction
This rise in finished garment imports coincides with a contraction in South Korea’s upstream textile exports. Outbound shipments of man-made filaments and knitted fabrics fell sharply, highlighting structural stress across local yarn and fabric mills.
Korean fashion conglomerates are accelerating direct offshore manufacturing to defend gross retail margins against rising domestic operational overhead, notes Park Jin-woo, Senior Trade Analyst, Seoul Textile Institute.
In a representative industry case study, retail major Shinsegae International shifted additional apparel production quotas to Southeast Asian manufacturing facilities, cutting domestic fabric procurement while securing lower unit costs.
A premier consumer apparel trade destination
Originating as a high-volume synthetic fiber producer in the 1970s, South Korea's textile market now functions primarily as a premium consumer apparel trade destination. Major retail brands concentrate on activewear and synthetic blends. Sourcing plans prioritize low-cost Asian supply networks, maintaining a positive financial outlook for retail sales while upstream fabric manufacturing yields ground to foreign producers.
