South Korea’s footwear industry is one of the growing and third largest export industry in the world. According to facts and figures of 1990, made in Korea footwear exports reached to a record of U.S. $4.3 million. The late eighties, the most popular brand of shoes started to shift its production to other countries, Korea come to their senses, the footwear industry’s decline is now irreversible.
Korean footwear exports fell to U.S. $577 million as well as employing less than 80% in 1990. The fast rise in labor costs was the cause to decline and even loss of international competitiveness of Korean direct which effected hardly on the footwear industry.
The fundamental reason is that Korea began from the 70′s over-reliance on OEM production (OEM) production and export patterns and long-term neglect self-brand creation, marketing capabilities and expertise of overseas training. Made in Korea footwear exports after the first few decades did not developed because Korea did not succeed to create a well-known brand. It has not established a specialized marketing company. The late eighties, the creation of a number of brands trying to break into the U.S. market, but not succeeded so far like past. Korean footwear industry is still striving to stable its position again in the global market and have lots of potential to survive.
