Retailers eye China rebound as Korea–China summit revives market hopes

(Yonhap)

Hopes are rising across South Korea’s retail industry that access to the Chinese market could reopen, following a rare state visit by a South Korean president to China after more than eight years. Fashion and duty-free sectors in particular are reassessing China as diplomatic signals point to a potential easing of long-standing restrictions on Korean cultural and consumer brands.

On Tuesday, Lee Jae-myung met with Xi Jinping in Beijing for a bilateral summit. It marked the first state visit by a Korean president since 2017, when former President Moon Jae-in traveled to China.

Lee began the visit with an official welcome ceremony before holding talks with Xi, after which the two sides signed more than ten memoranda of understanding. The leaders also shared a state banquet, where they were reported to have agreed on the need for a broad restoration of bilateral relations.

(Musinsa)

Korean fashion companies have already begun moving to re-enter China’s offline retail market. Musinsa opened its first physical stores in Shanghai last December under the Musinsa Store and Musinsa Standard brands, marking a full-fledged launch of offline operations in China.

The company plans additional openings in major commercial districts including Nanjing East Road, Xujiahui and Hangzhou in the first half of this year, with a long-term goal of expanding to more than 100 stores across China within five years.

Hyungji Group, which has operated school uniform and apparel businesses in China through its subsidiary Hyungji Elite, is also raising expectations for growth in the market. The group recently signed a memorandum of understanding with Cosmax, formally signaling its entry into China’s beauty sector.

Both Musinsa and Hyungji Group were included in the economic delegation accompanying Lee’s visit, a move widely interpreted as a sign of their intent to expand China-related businesses.

Musinsa founder and CEO Cho Man-ho was reported to have attended the Korea–China business forum held Tuesday, as well as the state banquet later in the evening.

(News1)

The tourism and duty-free industries are likewise watching diplomatic developments closely. With visa-free entry for Chinese group tourists already in place, industry observers say an improvement in bilateral relations could lead to a rebound in inbound tourism from China, providing a lift to travel retail and related sectors.

“While it is too early to assume an immediate rollback of regulations, a more relaxed market atmosphere following high-level diplomacy could accelerate Korean companies’ re-entry into China,” an industry official said.