Korea : 96% of Apparel Exports Carry Foreign Labels

Korea's apparel exports are heavily dependent on orders from overseas brand-holding companies, with about 96 percent being exported under original equipment manufacturers contracts, the Korea Apparel Industry Association said yesterday.

According to a survey of the association's 325 members that are exporters, shipments with local manufacturers' brand names accounted for only 4 percent of the total apparel exports last year.

In contrast, a survey by the Ministry of Commerce, Industry and Energy showed that the ratio of independent brand usage for the nation's entire exports stood at about 40 percent last year.

"The apparel and textile industry is one of the weakest sectors in terms of standing on its own in the global market," said Geum Kyung-yeon, senior manager at the association.

Geum said that apparel exports carrying independent domestic brand names are mostly limited to hats with 52.2 percent of total exports being locally branded, underwear with 38.5 percent and knit wear with 27.9 percent.

He emphasized that individual manufacturers find it difficult to make inroads into foreign markets.

The number of apparel factories, including subcontractors, decreased by 14 units to 744, even though 25 more companies were surveyed than the previous year.

Apparel companies kept 37,897 workers last year, down 4.9 percent from the previous year.