Earlier in August, Shinsegae International also suspended its Banana Republic business, which it had been importing for a decade.

In January, Eland Group, a major South Korean outlet mall operator, sold its brand Teenie Weenie to a Chinese company for some 877 billion won ($803 million). Eland said it will continue to sell other brands to reduce the company's debt ratio and improve its financial circumstances.

The size of the domestic fashion market is predicted to reach 39.3 trillion won in 2017, up from an estimated 38.3 trillion won last year, according to a report by the Samsung Fashion Institute.

This would mark the fourth consecutive year of single-digit growth for the fashion industry, causing many industry watchers to view it as an effective slowdown. The market expanded 11.8 percent on-year in 2011. (Yonhap)