A 5 Million Won 'Symbol of Love'... "Exactly the Same for 800,000 Won"—Mass Shift as Mines Shut Down

De Beers Halts Operations at Key Mine
South Africa’s 40% Unemployment Rate Puts 1,200 Jobs at Risk

"If I can choose from various designs and colors with the same quality, and lab diamonds are even more affordable, there's really no reason to hesitate." (Ms. A, woman in her 20s)

"I work at a jewelry shop, and when customers ask me about the difference between lab diamonds and natural diamonds, I tell them it's like 'farmed flatfish' versus 'wild-caught flatfish'." (Ms. B, woman in her 30s)

Lab-grown diamonds—artificial gemstones produced in laboratories—are shaking up the traditional marriage gift market and the fashion jewelry industry, threatening the status of natural diamonds. As preference for lab diamonds rises, major diamond mines around the world have either closed or suspended operations, putting the livelihoods of mine workers at risk.

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According to the Wall Street Journal (WSJ) on September 5 (local time), De Beers, the world’s largest diamond producer, decided last July to halt production at South Africa’s Venetia Mine for the next two years. Lab diamonds, grown under high-temperature and high-pressure conditions in laboratories, are virtually identical to natural diamonds in terms of physical and chemical properties, but are available at a much lower cost.

‘Lab Diamond Craze’ Sweeps Korea and Beyond

This growing preference for lab diamonds is spreading rapidly not only in Korea but across the globe. In Korea, Lloyd Lab Diamond, operated by Eland Group’s E-World, saw its annual sales growth rate climb steadily: 52% in 2022, 67% in 2023, and 75% in the first quarter of 2024.

1 Carat Diamond Ring (Left), 1 Carat Lab Diamond Ring (Right). Korea Gold Exchange

The growth in overseas markets is even more pronounced. According to The Knot, a U.S. wedding information website, a majority of engaged couples in the United States opted for lab diamonds over natural diamonds. Walmart reported a 600% surge in lab diamond sales compared to the previous year, and Sam’s Club has expanded its lab diamond offerings to all its locations.

Even Japan, which had long insisted on natural diamonds, has now emerged as Asia’s fastest-growing market for lab diamonds. As of 2025, the average purchase cost of a lab diamond engagement ring in Japan is between 300,000 and 600,000 yen (approximately 2.6 million to 5.2 million won), whereas an equivalent natural diamond engagement ring ranges from 800,000 to 1.5 million yen (about 6.9 million to 13 million won), showing a dramatic price difference.

"No Jobs Like Those at the Mine"... Workers in Despair

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Meanwhile, as lab diamonds become mainstream, the price structure for diamonds overall has been upended. Market research shows the average price of a 1-carat natural diamond has plunged by about 47% over the past 10 years to $3,415 (about 4.6 million won). In contrast, the 1-carat lab diamond price has plummeted by 89% in the same period, dropping to $595 (about 800,000 won).

In the past two years alone, more than 10 major diamond mines worldwide have either closed or suspended production because they could no longer withstand falling prices. As a result, global diamond output has dropped by around 25% compared to five years ago.

Despite the drop in supply, prices have shown no signs of rebounding. In response, De Beers, the world’s largest diamond producer, launched large-scale marketing campaigns promoting the rarity and symbolism of natural diamonds. However, the company ultimately surrendered, unable to cope with ongoing cost pressure.

Union: "The Fall of Natural Diamonds Was Inevitable" ... Criticizes Company’s Inaction

Workers are mining diamonds at the Venezia Mine. Mining Review Africa

The real issue is that halting mine operations in South Africa, where the local unemployment rate exceeds 40%, deals a fatal blow to the regional economy. The situation is especially dire in Musina, near the Zimbabwe border, where well-paid jobs with benefits from multinational mining companies are exceedingly rare. Tina Nemahunguni, 37, who maintained equipment at the Venetia Mine for 13 years, said, "It was the only job that allowed me to provide for my family, and now it’s gone."

The union has criticized the mining companies for neglecting the impending downfall of natural diamonds, which they say was foreseeable long ago. The parent corporation, Anglo American, has recorded impairment losses in the trillions of won in recent years and has sought buyers for its stake in De Beers, but has yet to find a suitable acquirer.

In response, De Beers stated that it would work to minimize the community impact by supporting various projects. However, workers who suddenly lost their livelihoods are strongly criticizing the company for its double standard—shutting down mines while hiring new staff for lab diamond operations.

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