From shoes to shot glasses, merch market rides wave as presidents and museums lean into swag

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From shoes to shot glasses, merch market rides wave as presidents and museums lean into swag

Published: 11 Jun. 2025, 15:00 Updated: 11 Jun. 2025, 17:58

Audio report: written by reporters, read by AI

President Lee Jae-myung wears sneakers featuring his campaign's slogan during a rally in Hwaseong, Gyeonggi, on May 12. [JOINT PRESS CORPS]

In early May, President Lee Jae-myung sparked a retail frenzy without uttering a single word about fashion.

Appearing at a presidential campaign kickoff event in a pair of Reebok Classic Leather GY1522 sneakers, then-candidate Lee unknowingly ignited a consumer craze. By the next day, the shoes — typically going for 35,600 won ($26) a pair — were sold out. Some resellers asked for as much 340,000 won, almost tenfold the retail price, on online marketplaces.

Other political figures followed suit — or rather, sneakers. New Balance shoes worn by People Power Party (PPP) candidate Kim Moon-soo and a Casio watch sported by Reform Party candidate Lee Jun-seok also gained attention among their supporters.

The phenomenon signals more than viral fashion moments. From K-pop to politics, virtual influencers to municipal governments, Korea, much like China and the United States, is witnessing a full-blown expansion of the "goods" economy, more commonly known as "merch" in English.

No longer confined to fandoms, merchandise now functions as an essential expression of affiliation and identity — as well as a potential key driver of domestic consumption amid a struggling economy.

A limited-edition ticket given to visitors of a pop-up store for Isegye Idol, a virtual YouTuber girl group [JOONGANG ILBO]

From side hustle to full-blown industry

In February 2024, a pop-up shop at The Hyundai Seoul department store in Yeouido, western Seoul, called “Isedol Popupbwat?” raked in 3.8 billion won in two weeks. That's more than what many permanent fashion retailers earn annually in the department store.

The merchandise, featuring the virtual K-pop girl group Isegye Idol, ranged from plush cushions to hoodies priced between 8,000 won and 79,000 won.

“At first, we thought the shop was selling goods related to the Go player Lee Se-dol,” a Hyundai Department Store representative said, based on the fact that his name and the first part of the pop-up's name are pronounced the same in Korean. “We didn’t expect this kind of demand for virtual idols.”

Merch — or “goods,” as they're called in Korea — has transformed into a vehicle for value-based consumption across sectors that thrive on loyalty. Tech firms like Naver, Kakao, Netmarble and NCsoft lead the charge, capitalizing on their intellectual property (IP) from games, webtoons and animations.

According to the Korea Creative Content Agency, the domestic character IP market is expected to hit 16.2 trillion won this year.

K-pop, but make it commerce

The entertainment industry remains the merch gold mine. Agencies like SM, YG, and JYP Entertainment have formalized merchandise planning as a business strategy.

Just last year, Korean small- and medium-sized businesses (SMEs) exported $52 million worth of stationery and toys, much of it driven by K-pop goods, according to the Ministry of SMEs and Startups.

The secondary market is even more staggering. A single photocard of BTS member Jimin sold for 3 million won overseas, setting a record in the burgeoning resale economy.

Even trot singers like Lim Young-woong and Lee Chan-won have turned their fan merchandise into sought-after gifts among older demographics domestically.

U.S. President Donald Trump holds a cap with his campaign slogan, "Make America Great Again," as he arrives at Philadelphia International Airport in Philadelphia on March 22. [REUTERS/YONHAP]

China’s 'merch economy,' U.S. political swag

China also sees potential in merch as a remedy for sluggish domestic demand. According to the Qianzhan Industry Research Institute, China's goods market is projected to reach 590 billion yuan ($82 billion) by 2029. A new slang term even emerged: “chi gu” — or “eat millet” — a pun that refers to buying merch.

“It has become a global trend for young people to consume goods that reflect a brand’s philosophy and identity, as the economic downturn makes it harder for them to afford expensive products,” said Park Jae-hyun, head of the Korea Brand Marketing Research Institute.

In the United States, political merchandise has long been campaign canon. From mugs and shirts to Bibles and flyswatters, U.S. campaign goods, splashed with candidate names and slogans, serve as both memorabilia and micro-donations.

The red “Make America Great Again” cap popularized by U.S. President Donald Trump became a modern icon of this trend.

Korea is catching up. Supporters of former President Moon Jae-in made “ini goods” based on his nickname, while fans of former PPP leader Han Dong-hoon created “hooni guardian" plush toys, also playing off his name. President Lee’s Reebok sneakers and Barons eyeglasses have also become cult favorites.

“Politicians tap into young people’s responsiveness to trends,” said Lee Jun-han, a political science professor at Incheon National University. “Merch can create emotional ties and shared identity, which sometimes translate into votes.”

Influencers and custom platforms join in

Merchandise culture has expanded beyond celebrities to include YouTubers and TikTokers.

Influencer management agencies like Sandbox Network and CJ ENM’s DIA TV have launched product lines for creators like Sibling War, Sleepground and Dotty.

Thanks to print-on-demand services, creators can now offer small-batch custom merchandise without inventory risks.

“You can produce goods starting with just one item,” said Park Hye-yoon, CEO of Mapple Corporation, which runs a merch production platform. “It’s now expected that influencers monetize their content through branded products.”

A jumper featuring Daehan Flour Mills' Gompyo brand [DAEHAN FLOUR MILLS]

From museums to malls

Corporations are also all-in. They see merchandise as a low-cost way to win over younger consumers who value uniqueness and scarcity.

Starbucks Korea’s “Frequency Event” — a twice-a-year campaign offering exclusive items that started in 2003 — reliably boosts monthly sales by 10 percent.

Online bookstores like Aladin and Yes24 offer “Goods of the Month” that require minimum purchases, and gain loyal customers in the process. These so-called “goods maniacs” often buy books they never intended to read just to get the merchandise.

“Goods have been found to double the average value of book sales,” a Yes24 spokesperson said.

Even companies with no merchandising history are diving in. Daehan Flour Mills, a 70-year-old brand, enjoyed a hip revival by selling retro-themed products under its Gompyo label — from jumpers to cosmetics and beer.

After a construction crisis in 2023 tarnished its brand, GS Engineering & Construction added online retail to its corporate charter this year to sell home goods, like towels and cutting boards, branded with its Xi apartment line.

“The goal is likely to broaden public engagement and improve brand image through high-quality, premium household goods,” said an industry insider.

A color-changing soju glass set designed with scholars sold at the National Museum of Korea [NATIONAL MUSEUM OF KOREA]

Public sector turns to merch

Public institutions and nonprofit organizations have joined the merch movement too, seeing it as an effective way to capture public attention.

The National Museum of Korea generated over 20 billion won in revenue last year from selling merchandise. Its new image: trendy and MZ-generation-friendly. "MZ Generation" in Korea collectively refers to millennials and Gen Zs.

Local governments are also investing in character merch to attract tourists and boost regional economies.

On Monday, Daejeon launched Kumdori Ramyeon, the country’s first instant noodles featuring a municipal mascot. Seoul earned 300 million won from Haechi character goods last year, and Yongin opened a pop-up for its Joayong tiger mascot in February.

Cautionary tale of overconsumption

Still, some warn of the risks of environmental damage and overspending.

A 2023 Korea Consumer Agency survey showed that 52.7 percent of K-pop fans bought albums just to get merchandise. On average, they bought 4.1 copies of the same album to collect random items. One respondent said they once bought 90.

In 2020, one customer paid 1.3 million won to order 300 Starbucks drinks just to get a free gift, taking only one beverage.

“Excessive merch buying can lead to resource waste and environmental harm,” said Heo Kyung-ok, a professor of consumer science at Sungshin Women’s University. “Consumers need to develop more rational standards.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY KIM KYUNG-MI, HWANG SOO-YEON [[email protected]]