South Korea unveils five-year plan to grow K-craft industry at home and abroad

The Ministry of Culture, Sports and Tourism on Tuesday announced a plan to build a self-sustaining ecosystem for Korean craft — from creation and distribution to public enjoyment.

The ministry released the Second Basic Plan for Craft Culture Industry Promotion (2026–2030), aimed at laying a sustainable foundation for K-craft and strengthening its global competitiveness.

The plan sets two overarching goals: building a virtuous-cycle ecosystem through full-lifecycle innovation, and expanding K-craft's presence in overseas markets.

On the production side, the plan calls for strengthening the creative and manufacturing base and the broader craft industry ecosystem. Residency programs will be established using vacant homes and idle spaces owned by local governments, alongside technical retraining and business management education.

The ministry also plans to expand the pipeline of specialized intermediaries — including craft exhibition guides and product planners — and operate a business-to-business platform to foster collaboration with industries such as fashion, lifestyle and architecture. Startups that apply traditional values in contemporary ways will also receive support.

On distribution and overseas expansion, the plan calls for establishing integrated distribution centers in areas with high concentrations of foreign tourists, combining hands-on experiences, retail and promotional functions. The ministry will regularize dedicated craft exhibitions through partnerships with major domestic and international channels, including museums, department stores and online platforms. Craft products will also be promoted as gifts under the hometown love donation program and as awards for public institutions, creating stable public-sector demand. The Craft Trend Fair — the country's largest craft distribution event — will be upgraded into an industrialization hub by strengthening connections with overseas buyers and deepening strategic partnerships with companies.

To open new overseas markets, the ministry will support participation in major international trade fairs and step up K-craft promotion through a permanent overseas exhibition hall in Dubai and Korean cultural centers abroad.

The plan also aims to broaden public engagement with craft culture. "Craft Week" will be restructured as an intensive cultural event centered on key regional cities, and a traveling craft exhibition will tour areas outside the greater Seoul area to make quality craft works more accessible nationwide. A "one person, one craft" personalized education program will cover all stages of life from early childhood to old age, and healing and self-reliance support programs will be offered for out-of-school youth and socially withdrawn young adults.

Over the longer term, the ministry plans to establish a national craft museum to serve as the country's central hub for craft, and to build regional craft clusters that reflect local characteristics, fostering a locally driven craft industry ecosystem.

On the policy front, the ministry will pursue an amendment to the enforcement decree of the Value-Added Tax Act so that functional craft works receive tax benefits equivalent to those for fine art, and will seek institutional improvements including an exemption from gift-value limits under the anti-graft law. The craft industry will be established as an independent sector under the Korea Standard Industry Classification. The industry survey cycle will be shortened from three years to two and converted to a nationally approved statistical survey to improve policy effectiveness.

The craft culture industry has seen sustained growth, drawing renewed attention in an era of AI and digitalization.

According to the Korea Craft and Design Foundation, revenue in the craft culture industry rose from 4.25 trillion won ($2.75 billion) in 2018 to 5.24 trillion won in 2021 and 5.8 trillion won in 2024. According to the Korea Culture and Tourism Institute, craft exports nearly doubled in three years, climbing from $577.6 million in 2018 and $805.1 million in 2021 to $1.66 billion in 2024.

Culture Minister Choi Hwi-young said the current moment — when global interest in K-culture is spreading to craft imbued with Korea's distinctive aesthetic sensibility — is a critical juncture for K-craft to advance. "We will do our utmost to implement this second basic plan systematically, so that craft can deeply permeate the daily lives of our people and grow into a high-value-added industry that leads the global market," Choi said.