Major global luxury corporations saw total sales of 7.3 trillion won in Korea last year, but donations were only 4 billion won, accounting for just 0.055%. Despite the continuing popularity of luxury goods in Korea, which has led to annual price increases and billions in dividends paid to overseas headquarters, there are criticisms that they only make minimal contributions to Korean society.
According to the Financial Supervisory Service's electronic disclosure system on the 27th, the combined sales of five major luxury corporations, including Hermes Korea, Louis Vuitton Korea, Chanel Korea, Christian Dior Couture Korea, and Richemont Korea, were 7.2978 trillion won last year. This figure represents an increase of 598.7 billion won (8.94%) compared to the same period last year. Operating profit during the same period also rose to 1.2821 trillion won, an increase of 69.5 billion won (5.73%) from the previous year.
The total donations from these five companies last year were 4.0404 billion won. This is an increase of 1.6 billion won from the previous year (2.443 billion won), but the proportion relative to total sales remained at 0.055%. In contrast, dividends paid to overseas headquarters during the same period amounted to 686.3 billion won.
Richemont Korea reduced the amount of its donations despite growth in performance. The company recorded sales of 1.7952 trillion won and operating profit of 130.2 billion won for the last fiscal year (April 2024 to March 2025), increases of 19.6% and 22.7%, respectively, compared to the same period last year. The Richemont Group owns brands such as Cartier, Van Cleef & Arpels, Piaget, IWC, Montblanc, Buccellati, and Chloe.
Richemont Korea's donations totaled 499 million won, representing a decrease of about 12.5% from the same period last year (570 million won). Donations accounted for approximately 0.028% of total sales. During the same period, the dividends paid to headquarters amounted to 73.8 billion won, an increase of 37.9% from the previous year (53.5 billion won).
Hermes Korea recorded sales of 964.3 billion won and operating profit of 266.7 billion won in 2024. Sales increased by 21% and operating profit by 13%, but donations remained at the previous year's level of 553 million won.
Louis Vuitton Korea recorded sales of 1.7484 trillion won and operating profit of 389.1 billion won last year. Compared to the same period last year, these figures represent increases of 5.9% and 35.7%, respectively. The company made a donation of 405 million won. Notably, from 2020, when Louis Vuitton Korea began submitting domestic audit reports, to 2023, it did not make any donations.
Chanel Korea recorded sales of 1.8446 trillion won and operating profit of 269.5 billion won last year. Compared to the previous year, sales increased by about 8%, while operating profit saw a decrease of about 1%. Donations amounted to 1.917 billion won, the largest among the five companies. Donations accounted for approximately 0.1% of total sales. Hermes, Louis Vuitton, and Chanel increased prices for major products such as bags twice last year.
Christian Dior Couture Korea's performance last year showed sales of 945.4 billion won and operating profit of 226.6 billion won, a decrease of 9.6% and 27.4%, respectively, compared to the previous year. The company made donations totaling 665 million won. The proportion of donations relative to total sales was 0.07%, ranking second after Chanel.
Luxury brands are also raising prices several times this year. Chanel raised the average price of some flap bag products by 2.5% in January, and earlier this month increased prices for some bags and jewelry. Dior raised prices for its jewelry products by about 8%. Cartier also increased product prices by an average of 6% in February and May this year with roughly three months' interval.
Eunhee Lee, a professor at Inha University, noted, "The donations from luxury corporations remain at a minimal level. If this perception spreads, it will negatively impact luxury consumers as well."