Demand for lab-grown diamonds grows in Korea

[Photo by Lee Seung-hwan]

The demand for lab-grown diamonds is rapidly increasing in South Korea. Previously seen primarily as cost-effective alternatives to natural diamonds, lab-grown diamonds are now being recognized for their comparable quality, leading to a surge in the sales of higher-priced items.

Lab-grown diamonds are created in laboratories via a process that exposes carbon to high pressure and temperatures over an extended period. These diamonds are physically, chemically, and optically identical to natural diamonds, making them indistinguishable even to experts. However, they are significantly cheaper, costing up to one-tenth of the price of natural diamonds.

Korea has recently become a popular shopping destination for lab-grown diamonds, especially among foreign tourists. This trend is attributed to the country’s advanced retail market, precision craftsmanship, and diverse designs. Currently, only eight countries, including the United States, Japan, and Germany, have the capability to produce lab-grown diamonds.

On Thursday, ALOD, the only Korean brand that produces its own lab-grown diamonds, announced it sold its first high-end product exceeding 30 million won ($22,000) since launching in mid-May 2024. The item that was sold, the “Palace Necklace 1-Carat Gradation,” boasts a total weight of 26 carats and a price tag of 36 million won.

“Lab-grown diamonds have traditionally attracted interest due to their lower prices compared to natural diamonds. There is now a growing demand for premium products that allow for more extravagant and personalized expressions, even at higher prices,” the company’s CEO Kang Sung-hyuk said. According to ALOD, high-end products, defined as those over 1 carat and priced above 3 million won, now account for about 50 percent of their sales, a 20 percentage point increase compared to the same period in 2023.

This shift is largely due to the widespread recognition that lab-grown diamonds rival natural diamonds in quality. Their popularity grew even further after celebrities, including actress Son Ye-jin, wore them and interest from foreign tourists is also growing. International visitors have been particularly drawn to the diverse and exquisite designs that are available in Korea.

ALOD said that the proportion of foreign sales at their eight major department store locations nationwide has doubled compared to 2023’s figure.

LLOYD, a jewelry brand operated by Eland, sold a 7.67-carat pink lab-grown diamond ring, the most expensive of its kind in Korea, at 77 million won to an American tourist in March 2024. This unique piece was part of LLOYD’s “Tudor Rose Garden” collection that wss released in November 2023 and is the only one the brand has ever made in Korea.