The Boston-based athletic wear manufacturer said it would extend its licensing agreement with E-Land World until 2030, covering children's footwear and apparel lines. The decision comes as New Balance solidifies its presence in South Korea, where sales surpassed 1 trillion won (approximately $691.8 million) last year, making it the second-largest sportswear brand in the market, trailing only Nike.
The new subsidiary is scheduled to begin operations on Jan. 1, 2027. While E-Land World is expected to remain a key business partner beyond that date, the specifics of their future collaboration remain unclear.
Industry analysts suggest the arrangement could resemble that of luxury brand Thom Browne, which transitioned to direct operations while maintaining a retail management contract with Samsung C&T, its former licensee.
However, shifting to direct operations in South Korea has posed challenges for some global brands.
Puma, for instance, struggled after ending its 13-year licensing agreement with E-Land Group in 2008, with sales plunging nearly 50 percent from 200 billion won.
“New Balance is eager to establish a direct presence in the Korean market, but severing ties with E-Land Group, which has successfully managed the brand for years, would be a delicate matter,” said an industry insider familiar with the negotiations.
An E-Land Group official said that while details regarding the subsidiary remain undecided, dealer relationships will play a crucial role in determining future contract terms.
reporter
Kim Dong-young
davekim0807@ajupress.com
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