Koreans’ spending on high-end fashion brands has declined sharply, reflecting a cooling demand for luxury goods amid economic uncertainty.

According to Korean alternative data platform KED Aicel, credit card transactions for upscale brands under French luxury group Kering totalled US$26 million (KRW$38.1 billion) in February, marking a 10.3 per cent drop from last year. This is Korea’s lowest monthly sales figure for Kering brands since 2018.

The decline affected major Kering labels including Gucci, Balenciaga, Bottega Veneta, Brioni, Boucheron, Saint Laurent, and Alexander McQueen.

Other luxury houses also saw a downturn. Transactions for 17 LVMH brands, including Louis Vuitton and Givenchy, fell 4.2 per cent year-over-year to $99.3 million (KRW$146 billion).

Spending on Dior, Burberry, and Chanel declined by 24.8 per cent, 22.4 per cent, and 8.4 per cent, respectively.

According to KED Global, the slowdown in luxury spending comes as economic pressures lead Korean consumers, particularly the middle class, to cut back on discretionary purchases.

“This is a sharp reverse from Koreans’ spending trend, which has indulged in expensive haute couture items despite constant price hikes by foreign high-end fashion and jewellery brands in recent years,” KED Global reported.