Editor’s Note
This article highlights the growing market for lab-grown diamonds in South Korea, driven by their affordability and ethical appeal. As consumer preferences shift, this domestic production initiative represents a significant development in the luxury goods sector.
Amid prolonged high inflation and economic downturn, ‘Lab-Grown Diamonds’ are rapidly capturing the domestic wedding gift market. Lab-grown diamonds can be purchased at about one-fifth the price of natural diamonds while being 100% identical in physical, chemical, and optical properties. They are also free from the labor and human rights issues associated with natural diamonds, greatly appealing to young consumers who value ethical consumption.
KDT Diamond, operated by CEO Kang Seung-gi and his son, Director Kang Sung-hyuk (CEO of ALOD), is the first company in Korea to produce laboratory diamonds and is creating a storm in the jewelry market through its unique competitiveness.
On the 19th, the lab-grown diamond specialist brand ALOD announced that sales of its 1-carat proposal rings increased by 93% this year. The proportion of 1-carat proposal rings in ALOD’s total sales also increased from 27% last year to 53% this year.
While lab-grown diamonds have been popular as cost-effective items, they have not made a significant impact in the high-end jewelry market, such as wedding gifts. However, unlike last year, the number of consumers seeking premium products is increasing, and the landscape of the wedding gift market is expected to change.
According to a report by global diamond specialist analyst Paul Zimnisky, the lab-grown diamond market, valued at $2 billion (approximately 2.6 trillion KRW) in 2021, is expected to nearly double to $3.9 billion (approximately 5.2 trillion KRW) by 2025. The domestic market size is expected to reach 70 billion KRW in 2023, a 40% increase compared to the previous year.
This rapid market change is due to the fact that lab-grown diamonds are inexpensive but 100% identical to natural diamonds in physical, chemical, and optical properties. In the case of wedding gifts, budgets are fixed, and products are chosen within that budget to reflect personal taste. However, with existing natural diamond products being so expensive, the range of choices was limited. Choosing lab-grown diamond products allows for increasing the carat size or purchasing multiple items such as necklaces and earrings along with the ring.
ALOD is a lab-grown diamond brand launched by diamond specialist company KDT Diamond in March last year. It is the only company in Korea that directly produces lab-grown diamond rough stones using its own production technology and facilities. Unlike other brands that rely entirely on imports, ALOD can produce and polish diamonds in-house, allowing it to quickly introduce lab-grown diamond products that reflect customer trends.
KDT Diamond was the first in Korea and the eighth in the world to successfully develop gem-quality lab-grown diamonds using the CVD (Chemical Vapor Deposition) method. To date, only seven countries—the United States, India, China, Japan, Singapore, Germany, and Israel—have the capability to produce such synthetic diamonds.
CEO Kang Seung-gi, a jewelry expert with about 36 years in the industry since founding Kang Jewelry in 1987, entered the diamond business in the 2000s. In 2019, he collaborated with Professor Song Oh-sung’s team from the Department of New Materials Engineering at the University of Seoul and succeeded in developing Korea’s first gem-quality lab-grown diamond in 2021.
CEO Kang holds a doctorate from the Seoul National University of Science and Technology’s IT·Design Convergence Program, served as chairman of the Korea Diamond Committee (KDC), and is a certified gemologist by the American Gem Society. His son, Kang Sung-hyuk, CEO of ALOD, graduated from Goldsmiths, University of London, and has been working with his father since 2018.
ALOD made its debut at Hyundai Department Store’s Trade Center branch in March last year and successfully entered the top three department stores within eight months. It currently has stores in eight department stores in the metropolitan area. Each store generates an average monthly sales of 110 million KRW, and last year’s sales increased by over 100% compared to the previous year. Starting in 2025, the company plans to expand its presence nationwide, targeting annual sales of 30 billion KRW. In the second half of the year, it is preparing O2O (online to offline) services for VIP customers of Shinsegae Department Store and SSG.com, as well as various collaborative products and exhibitions with clothing brands and hotels.
ALOD is also focusing on developing its own signature designs to lead the domestic lab-grown diamond market. It is developing products with unique cutting styles that immediately evoke the ALOD brand, with the ultimate goal of embodying ALOD’s own design, philosophy, and message.