Korean fashion companies are turning the clothes in consumers' closets into a new business. According to market research firm PayNXT360, South Korea's re-commerce market is estimated at USD 5.2806 billion (approximately KRW 7.1715 trillion) this year, up 11.0% year-on-year; it is expected to grow at an average annual rate of 9.2% over the next four years, reaching USD 7.5183 billion (approximately KRW 10.2106 trillion) by 2030.

Key Points

  • South Korea's re-commerce market is worth USD 5.2806 billion this year and is projected to reach USD 7.5183 billion by 2030
  • Musinsa's Used saw transaction value rise 45% month-on-month in August, with order volume up 25%
  • LF's L RE:Market had a customer repurchase rate of 34% and a reward usage rate of 73% as of February this year

Secondhand clothing trading, once dominated by consumer-to-consumer (C2C) transactions, is now being taken over directly by fashion companies. Companies handle the entire process—from collection and inspection to storage, photography, delivery, and customer service—easing the burden on sellers while building buyer trust through inspection. Musinsa's "Used" is a typical example: after sellers list items, the platform handles the entire transaction. The project's transaction value grew 45% month-on-month in August, with order volume up 25%; over the past five months, more than 20,000 sellers have been active on the platform each month.

Its business structure is also being adjusted. Musinsa announced it will shut down its limited-edition trading platform soldout by the end of this year and integrate fashion re-commerce features into Musinsa Used, shifting its focus from personal resale of limited editions to general fashion secondhand trading.

Another value of secondhand trading is bringing customers who sell old clothes back to buying new products. Companies pay with points or rewards usable on their own malls instead of cash, securing secondhand supply while guiding customers back. LF handles the collection, inspection, storage, and resale of secondhand clothing through its resale market "L RE:Market," issuing sellers "L Rewards" usable on the LF mall. As of February this year, the platform's customer repurchase rate was 34%, and its reward usage rate was 73%.

This model is also being used to attract customers from other brands. Kolon FnC's "OLO Relay Market" started in 2022 mainly with secondhand goods from its own brands, and this year expanded its acquisition scope to about 160 other brands. Selling clothes from other brands still earns OLO points usable on the Kolon mall. Currently, the sell-through rate of acquired goods remains around 85%.

Users of secondhand clothing are not limited to young people. Among LF's L RE:Market customers, those aged 50 and above account for 48%, and those aged 40 and above account for 32%, with middle-aged and older groups being the main participants, showing that fashion companies can use this to expand their customer reach.

The focus of competition is thus extending from how many new products are sold to how to use already-sold clothes to create the next transaction. A fashion industry insider said that resale not only helps resource circulation but also brings customers back to the platform and generates new transactions, which is why it is also drawing attention from a business perspective.

Source: "2030년 10조 시장 잡아라"…패션업계 새 먹거리로 떠오른 '리커머스'[두 번째 가격표] · Originally published on 2026-10-01