South Korea's booming tech sector and rising consumer wealth are a bright spot for the global luxury industry.
UBS identified several high-end brands that could benefit from stronger spending by Korean shoppers.
The bank cited evidence of an AI-driven semiconductor boom spilling into the broader economy.
A recent labor agreement at Samsung Electronics will provide chip workers with average bonuses of roughly $340,000, boosting consumer purchasing power and averting a strike.
UBS noted that Korean consumers account for a mid- to high-single-digit percentage of sales for many luxury groups.
Among luxury companies, Moncler has the highest exposure to South Korea with about 10% of sales, followed by Prada at roughly 9%, and Hermès and Burberry at around 8%.
However, demand remains uneven across categories, with high-ticket segments like watches and jewelry benefiting more.
Luxury stocks currently trade at a roughly 48% premium to the broader European market, below long-term averages, leaving room for a potential re-rating.
