According to industry sources on July 28, the Korea Federation of Textile Industries, or KOFOTI, is launching a program supporting AI-based demand forecasting and business development in the textile and fashion sector with assistance from the Ministry of Trade, Industry and Energy.
KOFOTI accepted applications from participating companies between May 15 and June 5. From this month through the end of the year, the program will provide each company with up to 10 million won for on-site pilot deployment and joint technology development.
The textile and fashion industry views AI adoption as a prerequisite for expanding K-fashion globally. The worldwide popularity of Korean culture has provided a foundation for overseas growth, but South Korean companies have been slower than established fashion-producing countries to adopt data-driven management systems using AI for demand forecasting, production efficiency and inventory optimization.
Most South Korean textile and fashion companies face difficulties applying AI because of shortages of skilled personnel and data capabilities, as well as the initial cost of adopting the technology. The industry's high-mix, low-volume production model, complex manufacturing processes and fast-changing consumer trends also require AI strategies tailored to individual companies rather than standardized systems.
The support program is designed to address those challenges. To develop successful AI use cases, KOFOTI matched participating textile and fashion companies one-to-one with AI technology providers. The companies signed agreements earlier this month and will conduct pilot projects through the end of the year.
The project pairs fashion companies with AI providers, including LF with Palette, W Concept Korea with NXN Labs, B.CAVE with StyleAI and Daehyun TFC with LiveForward.
A total of 14 consortia have been formed, including Miju with ASO Korea, Boarding Pass with StyleMate, Esae F&C with Sije, Kindweave with DeepSales, Korean Friends with TutorUs Labs, ID Mode with Mirnine, Studio T-Bag with VibeVerse, Fitview with RebuilderAI, JW International with TFC and Urban Scroll with Studio Lab.
The companies will deploy customized AI technologies throughout the industry's value chain, from design planning and manufacturing to content production and marketing.
KOFOTI plans to build an AI ecosystem extending beyond basic business matching to joint technology development, commercialization and wider adoption of successful use cases. The federation will hold a company-matching demonstration event at the Textile Center in Seoul's Samseong-dong district in September to share the results of the collaborations.
KOFOTI is also expanding support for overseas business development and promotion. The federation is participating in international exhibitions including VivaTech in France and Fashion World Tokyo in Japan to create collaboration opportunities with overseas buyers and technology companies. It is also organizing international forums to strengthen global industry networks.
KOFOTI participated in a joint South Korean pavilion at VivaTech in June. At Fashion World Tokyo in October, it will operate a K-Fashion Tech Pavilion featuring eight AI technology companies specializing in textiles and fashion.
The companies will present examples of collaboration with textile and fashion businesses and outline the progress of AI adoption in South Korea.
“AI is a core technology that can enable structural innovation throughout the textile and fashion industry's value chain,” a KOFOTI official said. “This program will provide an important opportunity to accelerate AI adoption across the industry.”
