Luxury and fashion—South Korea—Q&A guide [Archived, 2020 edition]

The following IP practice note provides comprehensive and up to date legal information covering:

  • Luxury and fashion—South Korea—Q&A guide [Archived, 2020 edition]
  • 1. What is the current state of the luxury fashion market in your jurisdiction?
  • 2. What legal framework governs the development, manufacture and supply chain for fashion goods? What are the usual contractual arrangements for these relationships?
  • 3. What legal framework governs distribution and agency agreements for fashion goods?
  • 4. What are the most commonly used distribution and agency structures for fashion goods, and what contractual terms and provisions usually apply?
  • 5. Do any special import and export rules and restrictions apply to fashion goods?
  • 6. What are the requirements and disclosure obligations in relation to corporate social responsibility and sustainability for fashion and luxury brands in your jurisdiction? What due diligence in this regard is advised or required?
  • 7. What occupational health and safety laws should fashion companies be aware of across their supply chains?
  • 8. What legal framework governs the launch of an online fashion marketplace or store?
  • 9. How does e-commerce implicate retailers’ sourcing and distribution arrangements (or other contractual arrangements) in your jurisdiction?
  • More...

Luxury and fashion—South Korea—Q&A guide [Archived, 2020 edition]

This Practice Note contains a jurisdiction-specific Q&A guide to luxury and fashion in South Korea published as part of the Lexology Getting the Deal Through series by Law Business Research (published: January 2021).

Authors: Kim & Chang—Hee Won (Marina) Moon; Yong Hoon Cho

1. What is the current state of the luxury fashion market in your jurisdiction?

According to market data research firm Statista, the Korean luxury fashion market amounted to US$5.3 billion (apparel and accessories, exclusive of prestige cosmetics and fragrances) in 2018 with brands under the corporate umbrellas of LVMH, Kering, Chanel, Hermès, Prada, Richemont Group, Armani Group and EssilorLuxottica, among others, carving up a substantial portion of the market as major players. However, given the size of the Korean luxury market, which was the eighth largest luxury fashion market in the world as of 2018 according to Euromonitor, nearly all major global brands are competitively represented as other independent brands also enjoy considerable consumer support.

2. What legal framework governs the development, manufacture and supply chain for fashion goods? What are the usual contractual arrangements for these relationships?

The development, manufacture, and supply chain for fashion goods are governed by generally applicable business and regulatory laws, including the Korean Commercial Code (the KCC), the Monopoly Regulation and Fair Trade Act (the FTL), and the Fairness in Distributor Transactions

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