Indonesia's apparel market share in South Korea declines despite FTA

The free trade agreement (FTA) between South Korea and Indonesia, which was implemented on January 1, 2023, has not yet significantly boosted South Korea's apparel imports from Indonesia. Despite the agreement, Indonesia's contribution to South Korea's total apparel imports witnessed a slight decline, dropping to 4.68 per cent in the period from January to October 2023, compared to its 4.75 per cent share in 2022. 

South Korea imported total apparel worth $10.259 billion during the first ten months of 2023. Of this, imports from Indonesia were valued at $479.694 million, accounting for just 4.68 per cent of the total, according to Fibre2Fashion's market insight tool TexPro. 

Indonesia was the fifth largest supplier to South Korea, following China, Vietnam, Italy, and Bangladesh. These top four suppliers contributed over 75 per cent to South Korea's total apparel imports during the first ten months of 2023. In 2022, South Korea imported total apparel worth $12.194 billion. The inbound shipment from Indonesia was $579.616 million, which represented 4.75 per cent of the total. Indonesia was the fourth largest supplier after China, Vietnam, and Italy, whose combined share was around 70 per cent, as per TexPro.

In 2021, Indonesia's share was 4.83 per cent of total imports worth $10.483 billion, with inbound shipments from Indonesia valued at $506.735 million. The country retained its fourth position among South Korea's top apparel suppliers. 

The data indicates that Indonesia has yet to gain a significant foothold in South Korea's apparel market, which is dominated by countries such as China, Vietnam, and Italy. 

ALCHEMPro News Desk (KUL)