South Korean fashion companies have turned eyes to overseas market amid little signs of turnaround in the domestic market.

Korean fashion group Hyungji Co. in September acquired “De Castelbajac,” the fashion label launched by French fashion designer Jean-Charles de Castelbajac, a pioneer of the avant-garde who dressed the late Pope John Paul II, Lady Gaga and Madonna. It was one of big merger and acquisition deals that Korea’s indigenous fashion brands have ever made since 2000. Previously, Fila from Italy and Germany-originated MCM were acquired by Korean firms in 2003 and 2005, respectively.

Hyungji, well-known for running its low- and mid-tier women’s apparel brands such as “Crocodile Lady” and “Chatelaine” in Korea, decided to add the French fashion lineup to its business portfolio in hopes that the deal helps not only expand its presence in the golf-wear and handbag markets but also enter the markets for home and living goods and men and children’s clothing.

Korean outdoor and sports-wear brands are also in quest to find new growth momentum as the nation’s outdoor craze has fizzled out in recent years. Youngwon Corp., parent company of Youngone Outdoor Corp. that runs the Korean operations of the North Face, became a major shareholder of European bicycle brand “Scott” last year. Another leading outdoor cloth and gear supplier Black Yak Corp. bought U.S. fashion brand “Nau” last year.

LeeNHan Co., which earlier this year pulled out its sports apparel brand EXR from Korea, has been focusing to expand the lineup of import goods while actively considering acquisitions of offshore brands, such as U.S. street fashion brand “Joy Rich,” according to a company official.

Korea’s home-grown brands have been also actively seeking opportunities in foreign markets. Samsung C&T Corp.’s fashion business is working on a plan to export its women’s apparel “Kuho” and men’s apparel “Juun. J” brands to overseas. The company that aims to earn 100 billion won ($90.3 million) in sales from Kuho this year expects to double sales to 200 billion won by 2020 by entering global markets such as the United States. Juun J became the very first designer in Korea to be invited to global men’s apparel fashion show “Pitti Uomo” held in Italy early this year. Samsung C&T’s fashion unit plans to grow the brand with sales of 100 billion won by 2020 by focusing on export.

By Park In-hye

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]