Editor’s Note
This article examines the stark decline in South Korea’s wedding jewelry market, a direct consequence of record-low marriage rates. As societal shifts reshape traditions, the ripple effects on long-established industries are becoming increasingly visible.
The wedding jewelry market has halved in size over the past decade due to a sharp decline in the number of marriages. On the 22nd, ‘For Rent’ signs were posted on stores in the Jongno precious metals district in Bongik-dong, Seoul.
It was desolate. It was hard to find soon-to-be-married couples shopping around for wedding gifts. On the 22nd, ahead of the spring wedding season, the Jongno precious metals district in Bongik-dong, Seoul, was quiet. Here, population decline was not just a distant story read in newspapers. As the marriage rate halved over ten years, the footsteps of people in their 20s and 30s visiting the precious metals district have almost ceased.
The wedding jewelry industry has taken a direct hit from the plummeting marriage rate. According to market research firm Wolgok Jewelry Industry Research Institute, the size of the wedding jewelry market last year was 819.7 billion won, a 25.9% decrease compared to the previous year. This is the lowest figure recorded since statistics began in 2010. Compared to ten years ago in 2012 (1.6049 trillion won), it has been cut in half.
The contraction of the diamond market, which accounts for two-thirds of the wedding jewelry market, was particularly noticeable. The domestic diamond market was recorded at 457.3 billion won last year, a sharp 35.6% drop from the previous year. Wolgok Jewelry Industry Research Institute Director On Hyun-sung explained, “The average purchase cost per couple for wedding jewelry was also the lowest.”
Industry insiders unanimously stated, “Due to the decrease in marriages, the consumer base has shrunk, and the wedding jewelry market itself is disappearing.” The number of marriages in Korea peaked at 435,000 in 1996 and has been steadily declining since. The last annual statistic from 2021 recorded 193,000 marriages, an all-time low. Although the number of marriages in the third quarter of last year saw a slight rebound for the first time in 15 quarters, analysis suggests it is merely a base effect from the COVID-19 period.
Merchants in the Jongno precious metals district are feeling this environmental change more acutely than anyone. Until the mid-2000s, it boasted the world’s largest single precious metals commercial district, with around 3,000 wholesale/retail precious metals stores and workshops gathered there. Now, the downturn is so severe that roughly every third or fourth store has a ‘For Rent’ sign posted.
According to Seoul City, the five-year survival rate for newly opened watch/jewelry stores near Jongno 3-ga Station is 64.8%. This means one out of three stores closes within five years of opening.
In contrast to the decline of the wedding jewelry industry, the non-wedding gift jewelry market, excluding marriage gifts, showed a statistical rebound influenced by rising gold prices due to factors like the war in Ukraine. The market size for general jewelry made of gold and platinum reached 4.9074 trillion won last year, an increase of 1.1652 trillion won from the previous year.
Consumption of imported luxury jewelry is also booming. According to the Korea Customs Service, last year’s jewelry import value reached a record high of $1,070.82 million (approximately 1.4 trillion won). Two-thirds of imported jewelry comes from Italy, France, and the United States, home to luxury brands like Van Cleef & Arpels and Cartier.