SEOUL, May 18 (Korea Bizwire) — The after-party event organized by Gucci after a fashion show in central Seoul has sparked a major controversy following reports of excessive late-night noise and disturbance to neighboring residents’ sleep.
On May 16, Gucci, a renowned luxury brand, hosted its ’2024 Cruise Fashion Show’ at Gyeongbokgung Palace in Jongno-gu, Seoul. The event, held at one of Korea’s most prominent historical venues, gained significant attention from the domestic and international fashion communities, as it marked Gucci’s first cruise fashion show in Asia.
However, the subsequent after-party, which extended until around midnight, caused inconvenience to nearby residents due to loud noise and vibrant lights. Eventually, the police were called to the scene, and a total of 52 complaints were filed.
The building where Gucci held the after-party is situated in a residential area and has a windowed structure, amplifying the difficulty for neighbors to sleep undisturbed. Many residents took to social media to share photos, videos, and complaints about the disruptive event.
This Twitter capture (@seenwu) showcases the vibrant atmosphere of the Gucci after party that extended late into the night on May 16.
One Twitter user expressed frustration, posting a photo taken with 10x zoom and asking, “How do I report noise pollution?” They elaborated, “The music is so loud that it reaches my room. It’s like the speakers are outside. Even the laser lights are flashing.” The user later shared their exasperation, stating, “I think I’m going to lose my mind. This is where people live. I don’t know why they’re blasting the sound outside. Shouldn’t they act like a luxury company?” The company faced criticism through these public posts.
Moreover, concerns arose regarding the potential backlash faced by Korean celebrities who participated in the event as Gucci ambassadors. Singers and actors like IU, Lee Jung-jae, actresses Kim Hye-soo, Kim Hee-ae, Go So-young, Shin Min-ah, Im Ji-yeon, filmmaker Park Chan-wook, and K-pop stars such as New Jeans’ Hanni, Aespa’s Winter, and Ive’s Leeseo were associated with Gucci as ambassadors.
Subsequently, Gucci issued an apology to address the controversy that ensued. The apology, shared selectively with journalists for brand value, consisted of a single line: “Gucci deeply apologizes for any inconvenience caused to residents, including noise, by the after-party that took place after the fashion show on Tuesday.” Multiple media outlets reported the apology.
On the afternoon of May 16, the renowned Italian luxury brand Gucci hosted its ’2024 Cruise Fashion Show’ in the picturesque setting of Geunjeongjeon Hall at Gyeongbokgung Palace, located in Jongno-gu, Seoul. (Image courtesy of Yonhap)
Gucci is not the only luxury brand encountering such issues. In April, Louis Vuitton organized a fashion show on the Jamsu Bridge in Seoul, leading to significant disruption and public backlash in the neighborhood, which was closed to traffic during the show. However, Louis Vuitton remained silent on the matter.
Global luxury brands have shown increasing interest in South Korea, influenced by the growing global prominence of the Korean Wave and higher sales in the country. Hermès, Louis Vuitton, and Chanel experienced double-digit sales growth in South Korea last year. Surprisingly, these brands have not made any significant charitable donations to local causes.
Surprisingly, these brands have not made any significant charitable donations to local causes. (Image credit: Kobiz Media)
According to the audit report of Hermès Korea, Louis Vuitton Korea, and Chanel Korea, their combined sales reached 3.9 trillion won in 2022, marking a 22 percent increase compared to 2021. These luxury brands have contributed to their overseas subsidiaries through increased dividends.
However, they faced criticism for their minimal domestic donations. Chanel, Louis Vuitton, and Hermès paid out 295 billion won, 222 billion won, and 75 billion won in dividends last year, respectively. Yet, Chanel Korea donated 1.16 billion won, Hermès Korea donated 560 million won, and Louis Vuitton Korea has rarely made any donations since 2020.
As South Korea establishes itself as a significant player in the global luxury goods market, luxury brands have increased their investments in the country. Research firm Euromonitor predicts that South Korea’s luxury goods market reached $14.65 billion (approximately 18.6 trillion won) in 2022, a 4.4 percent increase from the previous year, making it the seventh largest luxury market worldwide.
The Korean fascination with luxury extends beyond fashion brands. Recently, media reported on a sports car priced over 500 million won that quickly sold out. Maserati Korea sold all five units of its MC20 Cello model, costing 530 million won and limited to 65 units worldwide.
Additionally, Bentley, another high-end brand, sold 775 units in Korea, with three out of four cars priced above 300 million won, helping Korea top the sales charts in the Asia-Pacific region.
Lee Eun-hee, a professor at Inha University’s Department of Consumer Studies, noted that the upper class remains unaffected by the sluggish economy or inflation and tends to differentiate themselves through conspicuous consumption.
They willingly pay high prices to draw attention. This phenomenon, known as ostentatious consumption or the Veblen effect, exists across all social classes, including the poorest, as explained by Thorstein Veblen, who introduced the concept.
The expansion of luxury goods buyers to include ordinary office workers and the popularity of K-pop, where idols often serve as advertising models, have contributed to a younger demographic’s preference for luxury items.
While the Korean market emerges as a vital luxury brand market driven by desire, there is a growing concern that Korea may be reduced to a mere tool for these brands’ self-indulgence, exploiting its strong influence on global culture, such as the Korean Wave.
Jerry M. Kim (jerry_kim@koreabizwire.com)
