"Korean Textile Industry Needs to Shift Toward High-Value-Added Materials"

2026 First Textile Industry Committee Meeting Held

Small and medium-sized enterprises (SMEs) in the textile industry gathered to discuss strategies for addressing logistics disruptions caused by the Middle East war and the increasingly stringent environmental regulations.

On April 22, the Korea Federation of SMEs announced that it had held the "2026 First Textile Industry Committee Meeting" at its headquarters in Yeongdeungpo-gu, Seoul. This committee was formed to enable SMEs in the textile industry—including those specializing in fashion coloring, fabrics, and knits—to develop response strategies aimed at strengthening industrial competitiveness and fostering growth.

The meeting was attended by 22 SME leaders from the textile sector, including Committee Chair Kwonki Kim, Chairman of the Korea Bag Industry Cooperative Association; Sangwoong Han, President of the Korea Federation of Fashion Color Industry Cooperatives; and Seungho Baek, Chairman of the Daegu-Gyeongbuk Fashion Color Industry Cooperative Association.

The committee discussed a range of industry issues, including a presentation on the "Recent Status and Proposals for the Textile Industry," the current status of efforts to localize military apparel production, and measures to promote preferential public procurement of domestically produced fabrics for public uniforms.

Yuncheol Park, Principal Researcher at the Korea Institute of Industrial Technology, observed that "the domestic textile industry has been experiencing a long-term decline in both production and exports. This decline is being exacerbated by logistics disruptions resulting from the Middle East crisis, increasingly strict environmental regulations such as carbon reduction requirements, and the introduction of the EU Digital Product Passport (DPP). These complex changes in the external environment are putting additional pressure on the industry."

He went on to emphasize, "The Korean textile industry maintains a full-stream production structure, from yarn to finished products. We should leverage this strength to shift toward a structure focused on high-value-added industrial and functional materials. Additionally, by fostering K-Fashion utilizing K-Culture, we can discover new growth engines."

In the subsequent discussions, participants shared concerns that the increased localization of military apparel is leading to structural issues, such as cost burdens and procurement risks, which are disproportionately affecting small sewing companies. The committee decided to recommend to relevant ministries the need to adjust the official estimate prices and to establish a risk-sharing structure for fabric procurement. Furthermore, committee members provided feedback on institutional measures to promote the use of domestic fabrics in the public apparel sector.

Kwonki Kim, Chairman of the Textile Industry Committee, stated, "The prolonged US-Iran conflict has blocked export routes to the Middle East and caused sharp increases in raw material prices, placing the textile industry in an unprecedentedly challenging situation. It is also extremely difficult to respond immediately to external changes such as the strengthening of the EU supply chain due diligence and eco-friendly regulations. We will continue to work to ensure that the outcomes of today's discussions—such as the localization of military apparel and the increased use of domestic fabrics in public procurement—are actively reflected in government policies to help restore vitality to the textile industry."

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