The Sole of Busan

In 1977, the first pair of Nike shoes rolled off an assembling line in the Sasang-Gimhae area of what was then known to the world as Pusan. In the first month, the Sam Hwa factory produced 10,000 pairs of shoes. By the end of the year, it was producing 100,000 pairs. That was just the beginning of the Nike factories that produced footwear in the city.

From the mid-seventies until the mid to late eighties, Busan reigned as the shoe capital of the world. Everyone set up factories here. From big players like Adidas, Converse, and Reebok, to a myriad of never heard of brands that supplied department stores and small-time labels all over the world, 80 percent of shoes were manufactured in this little city by the sea. The other 20 percent originated in Taiwan and China, respectively.

Busan ruled more than just the world of shoe manufacturing. They also held court over the materials that went into shoes. Before a portion of those million shoe industry workers put the shoes together, the other portion found themselves busy creating the components for the footwear. In shoe lingo, components include things like outsoles, insoles, uppers, lowers, eyelets, tongues, shoelaces, and so much more. In many cases, this meant designing them out of raw textiles.

During this time, many of the biggest shoe innovations sprang from Busan minds. Do any of these sound familiar: Nike Air, the Reebok Pump, or Air Shox? These are just a few of the more well-known innovations developed here. Somewhat ironically, that Rocker Bottom shoe that is so popular in Korea was actually first designed by a Swiss company called Masai Barefoot Technology.

Eventually, cheaper labor markets evolved and by the end of the 80s, Busan unwillingly relinquished its position as the shoe leader of the world. Taiwan and China flip-flopped factory ratios with Busan. However, while factories left Busan, ownership of the factories did not. Korean companies simply moved to the lower labor cost cities and opened facilities. Though in reality, these days Korean and Taiwanese companies actually own close to 90 percent of the shoe factories in China.

1990 - The year the shoe industry in Busan nearly died

The Korean government noticed the manufacturing base fleeing and took action. Realizing they could not compete with Chinese labor prices, they chose other ways to keep the industry alive. They did this through tax incentives, but also by pumping money into research, development and education. One of the more interesting things was the opening of the Korea Institute of Footwear and Leather Technology. 

Located in Busan and more commonly known as the ‘Shoe High School,’ enrolled students for reading, writing and arithmetic and shoes, shoes and more shoes.
The government’s strategy succeeded. By the turn of the century, Korea, specifically Busan, began establishing itself as a new kind of industry leader. Now, according to an industry insider, 

“Korea is known for producing (designing) the best materials in the world.”
The company Treksta (headquartered in Busan) stands as one shining example of this new dominance. Treksta distributes the number two selling outsole in the world. They also designed the world’s first lightweight hiking shoe. At this point, they are the number one selling hiking shoe in Japan and Korea. Treksta can be found in just 30 countries and ranks number fifteen worldwide in sales. They just entered the U.S. market this year.

When asked about Treksta’s long-term goals, company president Kwon Dong-chil confidently expressed the footwear company’s plans: “To be ranked in the worldwide top ten by 2011, top five by 2014, and the number one by 2016,” he said. He comes across as a confident man running a company with a realistic goal

Busan’s Jinhae Free Economic Zone bustles with shoe activity. What starts as an idea there makes its way around the world in the form of new materials, designs and ultimately, better footwear for the world.

In 30 years, Busan grew by a million people. The shoe industry grew in ways only feet can measure.