FTA may boost South Korean apparel imports from Philippines

The Philippine government is optimistic that the FTA will come into force in current month itself after the issuance of an executive order by Philippine’s President Ferdinand Marcos Jr. Exporters of both countries will get certain benefits under the trade agreement.

According to Fibre2Fashion’s market insight tool TexPro, South Korea has imported apparel of $10.513 billion in the first ten months of the current year. Philippines’ share was just 0.67 per cent in the total inbound shipment. South Korea’s apparel imports from the partner country was valued at $70.114 million during the period. The imports decreased 9.61 per cent in January-October 2024 from the imports of $77.571 million in the corresponding period of the last year.

In 2023, South Korea’s apparel imports from the Philippines totalled $89.586 million, which was 0.75 per cent of South Korea’s total apparel imports of $11.979 billion during the year. China, Vietnam, Türkiye, Bangladesh and Indonesia were the top five apparel suppliers to South Korea.

In fabric too, Philippines has negligible presence in the South Korean market. South Korea’s fabric imports totalled $797.591 million in the first ten months of the current year. Of this, the imports from Philippines were noted at $6.193 million, or 0.78 per cent of the total imports. Fabric import from Philippines was 4.04 per cent lower the inbound shipment of $6.454 million in January-October 2023, as per TexPro.

Last year, South Korea had imported fabric worth $1,051.931 million. Of this, the import from Philippines stood at $7.778 million, or 0.74 per cent of the total.

Being an industrial developed nation, South Korea is an important consumer market for garment and textile products. Philippines may gain larger share in the market in the coming years due to the coming into force of the FTA.

ALCHEMPro News Desk (KUL)