Editor’s Note
Soaring gold prices are taking a heavy toll on Korea’s jewelry industry, with exports dropping 22% last year and domestic sales also in decline. The latest data from the Wolgok Jewelry Industry Research Institute highlights a growing trade deficit, now at $1.22 billion, as consumer purchasing power weakens.
Soaring Gold Prices Send Jewelry Exports and Domestic Sales Plummeting – Maeil Shinmun
Last year, exports fell 22%, resulting in a trade deficit of $1.22 billion.
A customer browses jewelry products at a department store in Daegu. (Maeil Shinmun DB)
A survey has found that despite the sharp rise in gold prices last year, exports of domestic jewelry products declined. The scale of jewelry imports reached 3.4 times that of exports, indicating a deepening dependence on imports. As demand shifts towards overseas luxury brands, local precious metal districts are not enjoying the usual boom even during the wedding season.
According to the ‘Korea Jewelry Import and Export Trends’ report published by the Wolgok Jewelry Industry Research Institute, South Korea’s exports of ‘jewelry and imitation personal adornment items (fashion jewelry not using precious metals)’ last year amounted to $517.74 million (approximately KRW 763 billion), a 22.2% decrease from the previous year.
In contrast, imports surged 29.1% to $1.74062 billion, resulting in a trade deficit of $1.22288 billion. Looking solely at jewelry, exports last year were $425.36 million, down 24.7%. The institute explained, “Despite the surge in gold prices, the contraction in export volume itself had a significant impact.”
On the New York Commodity Exchange, the international gold price rose to $4,341.10 per ounce at the end of last year, recording an annual increase of 62.6%. During the same period, domestic gold prices in Korea also soared to KRW 883,000 per don (3.75g), a 65.6% jump from the beginning of the year. The pace of gold price increases has slowed somewhat this year, both internationally (8.4%) and domestically (11.4%). As of the 27th, the international gold price was $4,693.70 per ounce, and the domestic price was KRW 980,000 per don.
Last year, jewelry imports surged 33.5% to a record high of $1.56401 billion. The import structure became increasingly centered on overseas luxury brands, with imports from four countries—France, Italy, Switzerland, and the US—accounting for 86.1% of total imports. The institute analyzed that the burden of higher gold prices is felt more acutely by consumers of domestic products, strengthening the trend towards choosing imported goods.
