Korea Trade-Investment Promotion Agency (KOTRA), operated and funded by the Government of South Korea, is planning to launch a fashion fund to boost Korea-China apparel products, reports The Korea Times.
Apparel with ‘Made in Korea’ tags sell well in global market, but there are few textile and garment companies now operating from Korea, as most of them have relocated their manufacturing to China and Vietnam, according to Han Ki-won, commissioner of Invest Korea, the foreign investment promotion division of KOTRA.
The proposed fashion fund would aim investing in small and medium sized companies in both Korea and China, and would benefit from the expertise of Korean designers and that of Chinese garment factories, thus ensuring a win-win situation for both.
The products developed through the fashion fund would be sold under a slogan, which could be “Made in Korea, Made with China”, states the report.
Invest Korea officials have been working on this project for nearly six months and they have now received some positive signals from their Chinese counterpart, the report adds.
Over the last two years, some Chinese companies have become the largest shareholders in Korean companies or have merged with Korean fashion firms. For example, Chinese private fund Unitas Capital invested 180 billion won in Korean outdoor wear maker Nepa in 2012, whereas Korean firm Suhyan Networks merged with Li & Fung Group last year.