Korean textile industry opts to undergo change for growth

Korean textile industry opts to undergo change for growth

최초입력 2025.07.04 10:29:49

(Korea Federation of Textile Industries)

South Korean textile and fashion industries should undergo transformation in a rapidly changing business environment for growth, according to Hong Jae-sung, chairman and chief executive officer at JS Corp.
“Samsung Electronics Co. and Hyundai Motor Co. have built fully automated manufacturing systems using robots in unmanned factories,” Hong said, in a speech delivered at the Textile Industry CEO Forum Busan hosted by the Korea Federation of Textile Industries on Thursday. “Coupang’s logistics centers are also largely automated. The world is taking these changes very seriously – and we must follow suit if we want to survive.”
Hong noted that “it’s been two or three years since we started talking about digital transformation and now we’re already talking about AI transformation.”
“This isn’t about the distant future. It’s an urgent issue, and those who don’t respond will be left behind,” he said.
Hong expressed concern over the stagnation of domestic fashion companies, citing rising labor costs, increasing industrial electricity prices, and intensifying business regulations.
He noted that China, which once served as Korea’s manufacturing base, has now fully replaced Japan’s manufacturing capabilities under its manufacturing revival policy.
In the retail sector, platforms like AliExpress, Temu, and Shein are also overtaking Korea – highlighting its vulnerabilities in the global market.
To counter these challenges, Hong proposed four key strategies for the global expansion of Korea’s textile and fashion industry – manufacturing, AI, retail branding, and workforce development.
In manufacturing, he emphasized the need to boost productivity and reduce labor costs through automation, while maintaining consistent quality.
He also argued for a complete overhaul of workflows centered around AI, suggesting that not only operational efficiency and data-driven decision-making, but also innovation and new business models, hinge on AI.
Hong cited past skepticism in the industry regarding Coupang’s losses, noting that even then, its founder pursued AI-powered logistics, believing in the creation of a completely new market.
Mentioning the recent investment of about 145 billion won ($106.1 million) in Gentle Monster by Google LLC, Hong pointed out the need for Korean fashion brands to target global markets and position themselves as luxury brands.
To address the difficulty of attracting young talent due to the fashion industry’s poor working conditions and low wages, he proposed introducing a draft system – where organizations like the Korea Federation of Textile Industries of the government provide professional training and select verified talent.
The federation’s chairman Choi Byung-oh also emphasized the need for innovation and government support amid rapid industrial and global changes.
“With increasing volatility in global trade, the world economy is facing structural uncertainty,” Choi said. “Swift innovation and institutional backing must go hand-in-hand for K-fashion and textiles to rise again as future core industries.”
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Korean textile industry opts to undergo change for growth

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