[NewsSpace=JeongYoung Kim] The three representative luxury brands, Hermès, Louis Vuitton, and Chanel, also known as 'He·Roo·Cha', have reported nearly 4 trillion won ($3.3 billion) in sales in South Korea last year, which is an all-time record high. Adding Christian Dior's sales to this, the combined sales of these four luxury brands in Korea reached around 5 trillion won ($4.2 billion).“ 

According to the Financial Supervisory Service's electronic disclosure system on April 14th, Louis Vuitton Korea recorded sales of 1.6923 trillion won last year, an increase of 15.27% compared to the previous year's 1.4681 trillion won. During the same period, operating profit increased by 38.37% to 417.7 billion won, and net profit increased by 68.96% to 380 billion won. 

Chanel Korea's sales in 2022 reached 1.5913 trillion won, an increase of 30.03% compared to the previous year's sales of 1.2238 trillion won. Operating profit during the same period was 412.9 billion won, up 65.89% from the previous year's operating profit of 248.9 billion won, and net profit increased by 73.64% to 311.5 billion won compared to 179.4 billion won in the previous year.

Hermes' sales were 6.502 billion won, operating profit was 201.5 billion won, an increase of 23.25% and 23.47% respectively compared to the previous year. Net profit increased by 22.75% to 153.8 billion won.

Christian Dior Couture Korea also recorded sales of over 900 billion won last year. Sales revenue for Christian Dior increased by 51.77% to 92.95 billion won compared to the previous year, and operating profit increased by 53.05% to 32.37 billion won.

The increase in sales of luxury brands during the pandemic period is attributed to revenge consumption of luxury goods. The surge in disposable income due to the virtual currency or real estate boom during this period also contributed to the increase. Another significant factor was that luxury brands increased their prices as demand increased.

As sales increased, the dividend amount sent by the luxury brands to their headquarters also increased significantly. Chanel paid 295 billion won, Louis Vuitton 225.2 billion won, and Hermes 75 billion won in dividends last year. However, their donations were not substantial, with Chanel Korea donating 1 billion won, Hermes Korea donating 50 million won, and Louis Vuitton Korea not engaging in any separate donation activities.