Hyungji I&C Forms Task Force for Inter-Korean Economic Cooperation, Aims to Restructure Supply Chain Leveraging Kaesong Experience

Hyungji I&C has launched a dedicated task force (TF) in preparation for the potential resumption of inter-Korean economic cooperation, simultaneously pursuing enhanced production competitiveness and the expansion of its global business.

Hyungji I&C (CEO Choi Hyewon) announced on the 16th that, in response to the increasing expectations for the resumption of inter-Korean economic cooperation amid recent changes in the international climate, it has formed a dedicated TF team for this purpose.

This TF is tasked with rapidly establishing the production system for all brands in anticipation of the possible reopening of the Kaesong Industrial Complex and improving production and operational efficiency. Based on this, the company plans to accelerate efforts to strengthen its overseas business and online business competitiveness.

This organization is particularly significant in that it brings together the experience and capabilities accumulated across the Hyungji Group. Yang Hongyeol, Head of Sales and Director, who has worked for more than 20 years at Hyungji I&C’s total shirt brand "Yezac," is participating in the TF. Yang previously gained on-site production management and operational experience during the operation of the Kaesong Industrial Complex.

In addition, knowledge will be shared from Hyungji Elite—known for producing various apparel items in Pyongyang, Nampo, and the Kaesong Industrial Complex and for its expertise in managing North Korean personnel and producing high-quality products—as well as from other affiliates within the group.

Hyungji I&C expects that if inter-Korean economic cooperation resumes in earnest, it will be able to combine North Korea’s skilled sewing techniques with its own planning and design capabilities to establish a highly competitive fashion production system.

The company believes that high-quality products manufactured with excellent sewing technology, combined with price competitiveness, will enable it to secure a differentiated edge in both domestic and international online and offline fashion markets.

With strengthened production capabilities, the company also plans to streamline online business operations and expand its global market presence. CEO Choi Hyewon, together with Chairman Choi Byungoh of Hyungji Group, has participated in an Italian economic delegation, establishing overseas networks. The company is also pursuing a new materials consortium with the premium fabric company Carvico, which is expected to create synergy when combined with the production infrastructure at the Kaesong Industrial Complex.

If production at the Kaesong Industrial Complex resumes, the company is considering gradually transferring a portion of its production volume, which currently relies on overseas bases such as Myanmar. This is expected to reduce logistics lead times and enable the company to establish a reorder-based production system that can quickly respond to market changes.

The company analyzes that streamlining the supply chain from production to logistics will lead to cost reduction and lower inventory burdens, thereby positively impacting profitability.

Hyungji I&C views the launch of this TF not only as a response to changes in inter-Korean relations but also as an opportunity to reinforce its global supply chain competitiveness. The company explains that, with the growing overseas interest in K-fashion, securing a stable production infrastructure will enable it to accelerate its expansion into global markets, such as Japan and Europe.

A Hyungji I&C representative said, "We are preparing a production model that combines South Korea’s advanced materials and planning capabilities with North Korea’s skilled sewing techniques to reliably supply high-quality products. Through operational efficiency improvements and global market expansion, we aim to create new growth opportunities."

Hyungji I&C plans to proactively respond to the potential for inter-Korean economic cooperation based on its experience with production at the Kaesong Industrial Complex, while simultaneously working to secure global competitiveness in the fashion supply chain.

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