Jul 9, 2025

Fashion Platform Musinsa Initiates IPO Print Editor Jasmine Choi Musinsa CI (Photo courtesy of Musinsa) Musinsa, Korea’s leading fashion platform company, is set to begin the process of selecting underwriters for its stock market debut. Musinsa has secured 6.5 million and 3 million monthly active users (MAU) through its fashion platforms "Musinsa" and "29cm," respectively. The market anticipates that the company’s enterprise value could exceed 10 trillion won at the time of its initial public offering (IPO), based on its user base of nearly 10 million. According to the investment banking (IB) industry on July 9, Musinsa has recently concluded discussions with major financial investors (FI) regarding the target enterprise value and decided to initiate the selection process for IPO underwriters. The company plans to distribute requests for proposals (RFPs) to major domestic and international securities firms by the end of this month at the latest and begin the process of selecting qualified candidates. The FIs have set the target enterprise value at over 10 trillion won and are considering options for listing on both domestic and international markets, including the KOSPI and the U.S. NASDAQ. A major FI representative stated, “Once the underwriting syndicate is formed, the listing is expected to take place next year or the year after. Considering the rapid growth of the overseas business recently, 10 trillion won is not an unreasonable target.” Musinsa, founded by Cho Man-ho in 2001, has become Korea’s largest fashion platform company over the past two decades. Combining its core Musinsa platform, the women’s fashion-focused 29cm, and the internationally-oriented "Global Store," the number of monthly platform users exceeds 10 million. The company’s rapid expansion into 14 countries worldwide, including Japan, has been effective amidst intensifying competition in the domestic fashion commerce market. An IB industry insider commented, “If Musinsa successfully enters the stock market, it will have a significant positive cyclical effect on the domestic capital market and startup ecosystem.” Musinsa’s confidence in targeting an enterprise value of over 10 trillion won for its market debut is largely based on the rapid expansion of its platform, particularly in overseas markets, and the success of its private brands (PB) such as Musinsa Standard. However, if the enterprise value exceeds 10 trillion won, the IPO could require raising over 2 trillion won in public offering funds, necessitating favorable domestic and international stock market conditions. Maintaining the growth momentum of overseas operations, which are expanding from the Japanese market to other major markets like China, is also crucial. Musinsa has recently finalized its plan to pursue a listing with an enterprise value of over 10 trillion won after discussions with major FIs. This is about three times the company’s enterprise value of approximately 3.5 trillion won, which was recognized when it attracted investment in the second half of 2023. Recently, as the IB industry began preparing to secure Musinsa’s IPO underwriting work, they estimated the expected value at 4-5 trillion won, which is significantly lower than the company’s target. An industry insider explained, “10 trillion won reflects both the current influence of the Musinsa platform and the performance of rapidly growing new businesses.” If Musinsa pursues an IPO with an enterprise value of over 10 trillion won, the public offering funds are expected to exceed 2 trillion won. DN Solutions, which aimed for an IPO with a value of 4-5 trillion won this year, struggled to raise about 1 trillion won in public offering funds, while Lotte Global Logistics, with an enterprise value of around 500 billion won, withdrew its IPO plans due to weak institutional investor demand. Attracting funds from major international institutions is essential, but the reluctance of long-term strategic investors to invest in volatile domestic IPOs is a concern. Considering this, Musinsa plans to keep options open for both domestic and overseas stock market listings. The IPO underwriting RFP, likely to be distributed next week, is expected to be sent to major securities firms both domestically and internationally. Of course, major markets like the U.S. NASDAQ tend to value companies more conservatively, and the cost of maintaining a listing is reportedly up to 10 times higher than in Korea, so it remains to be seen whether an overseas listing will actually be pursued. If aiming for a domestic listing, a KOSPI debut is likely. A key factor in Musinsa’s pursuit of a higher-than-expected valuation is its rapidly growing performance. Musinsa’s sales have increased sharply, recording 708.5 billion won in 2022, 993.1 billion won in 2023, and 1.2427 trillion won in 2024. While the company posted an operating loss of 8.6 billion won in 2023, it turned to a profit of 102.8 billion won last year, indicating improved profitability. In the first quarter of this year, the company recorded sales of 292.9 billion won and an operating profit of 17.8 billion won, showing a steady improvement in performance. Musinsa is rapidly expanding its business, particularly overseas. The transaction value of the Global Store, an overseas-dedicated platform launched in 2022, has been growing at an average annual rate of 260%, centered on Japan, bringing global market expansion into view. Additionally, the business-to-business (B2B) operation of distributing Korean brands through local fashion distribution platforms overseas is progressing smoothly. Recently, the company has also challenged the Chinese market by partnering with Anta Sports, the largest local fashion company. The private brand business, centered on Musinsa Standard, has successfully established itself in the market, and the offline business is also performing well. However, there are observations that this growth trend may not continue steadily. An IB industry insider commented, “Considering the current number of users and business scale, an enterprise value of 10 trillion won might be high. The target enterprise value can be reached only if domestic and international stock market conditions are favorable and the rapid growth trend continues.”