NEPA, Set to Join K2 Korea Group, Holds Multiple Talks with Chinese Firms... "Considering Overseas Expansion"

Presentations and meetings with Chinese companies since the second half of last year... exploring global expansion
Independent management and employment continuity even after joining K2
Expect increased investment and a return to profitability

Outdoor brand NEPA, which is set to join K2 Korea Group, has been contacting Chinese companies one after another to explore the possibility of entering the local market, it has been confirmed. The company plans to maintain independent management under its new largest shareholder while expanding investment in brand marketing and distribution channels to accelerate its recovery. Attention is focused on whether NEPA, which posted an operating loss last year, can return to profitability through its premiumization strategy and synergies with K2 Korea Group.

Kim Jeongmi, vice president of NEPA, said at the 2026 Fall/Winter (FW) Media Day held at the company’s Cheonggyesan store in Seocho-gu, Seoul, on Oct. 22: “With China’s outdoor market booming, NEPA has also been paying close attention to the Chinese market. We held several presentations (PTs) and meetings with Chinese companies from the second half of last year through the first half of this year.”

NEPA Vice President Kim Jeongmi delivers opening remarks at the 2026 FW Media Day held at NEPA's Cheonggyesan store in Seocho-gu, Seoul, on the 22nd. Photo by Kwon Jaehee

This is the first time NEPA has disclosed that it has been in direct contact with Chinese companies. However, it did not reveal the specific parties to the discussions, the timing of a potential entry, or the business model. She added: “Expanding into China and Southeast Asia is an important task not only for K2 Korea Group but also for NEPA. It is important to firmly establish NEPA’s distinctive identity by combining a premium lifestyle with outdoor technology.”

“Independent management even after joining K2”... Expectations for greater investment in the brand and distribution

NEPA recently entered a management transition period after signing an acquisition agreement with K2 Korea Group. K2 Korea Group is expected to become NEPA’s largest shareholder through a rights offering. With NEPA joining K2 and Eider under one group, attention is also turning to how responsibilities will be divided among the brands and what the group’s future management strategy will be.

On this matter, Vice President Kim made clear that NEPA would maintain its existing brand strategy after joining K2 Korea Group. “I believe K2 Korea Group acquired NEPA because of its distinctive positioning and direction,” she said. “Even as part of the group, each company will operate independently, so we plan to continue pursuing our existing strategy.”

NEPA also expects increased investment in brand marketing and distribution after joining K2 Korea Group. “Once we become part of K2 Korea Group, greater investment will be made in branding, marketing and distribution so that NEPA can strengthen its presence not only in department stores but also in street-front stores,” Vice President Kim said. “These efforts will also have a positive effect on our global expansion.”

EBITDA more than quadruples... “Expect to return to operating profitability through K2 synergies”

Kim Jaei, head of the Apparel Design Team in the Product Planning Division, introduces products at the 2026 FW Media Day held at the NEPA Cheonggyesan store in Seocho-gu, Seoul, on the 22nd. Photo by Kwon Jaehee

Improving results is also a key priority. On a consolidated basis, NEPA recorded revenue of 288.8 billion won and an operating loss of approximately 2.15 billion won last year. Vice President Kim said, “This year, EBITDA (earnings before interest, taxes, depreciation and amortization) increased more than fourfold from the previous year. This was the result of changes to our product strategy, which we have been pursuing consistently, as well as the more efficient logistics system we invested in last year and improved internal operational efficiency.” She added: “I believe that joining K2 Korea Group will create synergies that can help us return to operating profitability.”

NEPA’s key strategies for this year’s FW season are “diversifying lightweight down” and “segmenting premium lines.” Centered on “Style Tech,” which combines the core functionality of outdoor wear with urban fashion, the company is strengthening its product range for both everyday wear and outdoor activities.

The strategy is intended to address changes in the climate and consumer trends. Demand is growing for relatively lightweight outerwear even in winter, while the company believes that, despite the economic downturn, consumers are increasingly practicing “compressed consumption,” prioritizing versatile products that suit their tastes. “When we surveyed the commuting attire of office workers in their 30s and 40s, lightweight down turned out to be a major item, contrary to our expectations,” Vice President Kim said. “In the past, outdoor brands focused on functionality, but now they are expanding into everyday wear.”

She added, “The response was strong not only to the Style Tech down products we launched last year but also to some Arte products, which sold out early. Despite their high prices, customers in their 30s accounted for more than 30% of sales, and seeing younger customers come in has given us confidence in our premium products.”

This season, NEPA is expanding its lineup with lightweight down products such as Air Summit, while dividing its premium goose-down line, Arte, into Tech, a high-performance range, and Icon, featuring trend-forward designs. The company is also introducing Premia Luxe, following its existing Arte Luxe line.

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