Musinsa Surpasses 300 Billion KRW in Interest-Free Funding Support for Small and Medium Fashion Brands

Interest-Free Production Fund Support Project for Small Brands with Transaction Amounts Under 5 Billion KRW

Musinsa announced on the 23rd that the total amount of funds provided through the 'Mutual Growth Fund Support Project,' which offers interest-free production financing to small and medium-sized fashion brands, has surpassed 300 billion KRW.

According to Musinsa, as of July this year, the cumulative support funds paid to brands amount to 307.2 billion KRW. This includes production financing support from the 2015 Spring/Summer (SS) season through the current Fall season.

Musinsa, Partnership Growth Project Support Fund Surpasses 300 Billion KRW.
[Image provided by Musinsa]

The Mutual Growth Project was launched in 2015 to provide practical assistance to small and medium-sized brands facing difficulties in securing funding. This is due to the heavy production cost burden inherent in the fashion industry's characteristic of preparing product planning ahead of each season.

The project recruits eligible brands four times a year in line with seasonal production cycles and provides interest-free funds. Previously, it operated twice a year for the Spring/Summer (SS) and Fall/Winter (FW) seasons, but starting in 2021, it expanded to four seasons?spring, summer, fall, and winter?due to increasing brand demand.

Musinsa emphasized that the interest-free production financing has contributed to the growth of small and emerging brands. It creates an environment where brands that are small in scale or in the early stages of launching can focus solely on production and marketing activities. An analysis of sales performance for brands that received production financing for the first time in the 2023 Fall season showed that transaction volume during that season (September to November 2023) increased 2.7 times compared to the same period last year. Among these brands, 82% are small brands with annual sales under 5 billion KRW.

Its affiliate, 29CM, has also been operating the Mutual Growth Project since 2022, providing interest-free production funds to brands listed on its platform. When combining the cumulative support funds provided by Musinsa and 29CM to small and emerging brands, the total exceeds 330 billion KRW.

A Musinsa representative stated, "We have been steadily operating this project for over ten years to allow small and emerging brands in their early growth stages to focus on production and operations, enabling both the brands and Musinsa to grow together. Moving forward, Musinsa will continue to serve as a catalyst to help early-stage brands leap to the next level."