Musinsa Expands Co-Growth Funds... Annual Production Support Surpasses 52.1 Billion KRW

[Asia Economy Reporter Seungjin Lee] Musinsa announced on the 14th that the scale of production funds provided to tenant brands facing difficulties in product manufacturing due to the prolonged COVID-19 pandemic and rising raw material prices has exceeded 52.1 billion KRW annually. As part of its win-win growth project, Musinsa has supported production funds five times this year, with total cumulative support reaching 92 billion KRW.

Musinsa's win-win growth project operates by lending production funds interest-free for the next season so that brands can focus stably on production and marketing. It was launched in 2015 to solve the problem of small and medium-sized fashion brands struggling to secure production funds each season. Until last year, the project was operated twice a year, but this year, both the scale and frequency were significantly increased, providing over 52.1 billion KRW in five rounds.

About 7 billion KRW was invested in the first half of the year, and approximately 30 billion KRW was supported over three rounds in the second half. In October, due to the prolonged lockdown in Vietnam and the resulting suspension of overseas factory operations, Musinsa urgently secured an additional 8.6 billion KRW in production funds to assist tenant brands experiencing disruptions in the production and supply of fall and winter season products.

Recently, about 15.6 billion KRW of win-win growth production funds were provided to tenant brands preparing for the next spring season. Considering the increased production cost burden on small and medium brands due to the sharp rise in raw cotton and other raw material prices as well as rising subcontracting costs in Southeast Asia, the timing of fund support was advanced by one to two months compared to previous years.

A Musinsa official stated, “This year, the issue of securing production funds was particularly severe due to the prolonged COVID-19 pandemic, so we expanded the budget by more than 74% compared to the previous year,” and added, “We plan to continue expanding support programs focusing on practical needs for tenant brands to grow.”

This content was produced with the assistance of AI translation services.