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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Seoul, January 11, 2026 – South Korea’s once-dominant textile industry, long a major export driver, is facing a sharp decline as price competitiveness erodes and efforts to shift to high-value-added products have largely failed.
According to the Ministry of Trade, Industry and Energy, textile exports totaled $9.681 billion last year, down 7.5% from $10.463 billion in 2024. This marks the first time since 1987 that exports have fallen below the $10 billion threshold.
Textiles have historically been a key export sector, with South Korea becoming the first country in a single industry to surpass $10 billion in annual textile exports in 1987. To commemorate the milestone, November 11 was designated “Textile Day.” However, export growth has stagnated since the 2000s and declined steadily after 2022, barely maintaining the $10 billion mark.
Meanwhile, textile imports have risen, worsening the trade balance. Imports grew from $9.739 billion in 2010 to $12.33 billion in 2011, a 26.6% increase in a single year, and continued rising to $18.749 billion last year. The sector has recorded a trade deficit every year since 2016.
Industry analysts attribute the decline to intensified competition from emerging economies such as China, which have entered the apparel fiber market with lower labor costs. While efforts were made to expand overseas, the domestic textile industry struggled to develop new growth engines. Attempts to pivot to high-value-added, advanced, and eco-friendly industrial fibers have largely failed.
The Ministry of Trade, Industry and Energy notes that the global industrial textile market, valued at $146.7 billion in 2021, is projected to grow at an average annual rate of 4.7% to reach $192.2 billion by 2027. Yet South Korea’s share of the global market remains just 3%, with a 2% share in the eco-friendly textile segment.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
