[비즈한국] E-Land has secured the domestic distribution rights for Hoka. For E-Land, which had been facing growing concerns over a potential sales void ahead of New Balance’s direct entry into the Korean market, this new acquisition serves as a strategic growth card, allowing the company to breathe a sigh of relief. However, as the business rights dispute between Hoka’s previous local distributor and its global headquarters has yet to be fully resolved, the potential for this to act as a variable in future domestic business operations remains.
Will It Fill the 1.2 Trillion Won Void Left by New Balance?
On the 20th, Deckers, the global headquarters of HOKA, officially announced the appointment of E-Land as the new distributor for the Hoka brand in Korea. Deckers stated that it expects Hoka to continue its growth in the Korean market through this partnership with E-Land.
The global running shoe brand Hoka officially entered the Korean market in 2018 through Joyworks. Since then, it has grown rapidly alongside the domestic running market, establishing itself as a major sports brand. Consequently, the sales of Joyworks, which served as Hoka's local distributor, increased more than fourfold from 24.9 billion won in 2022 to 106.5 billion won in 2025.
As expectations for the brand's growth potential soared, competition to secure the new domestic business rights for Hoka became fierce. With major fashion and retail companies such as Shinsegae International, LF, and Musinsa reportedly vying for the distribution rights, E-Land was ultimately selected as the new local operator for Hoka.
For E-Land, this is essentially a new card to fill the void that will be left by New Balance. New Balance's headquarters plans to establish a Korean subsidiary and conduct its domestic business directly starting next year. It aims to gradually increase its share of direct operations until the contract with E-Land expires in 2030.
E-Land World, the parent company of the E-Land Group, has been in charge of New Balance’s domestic business since 2008. During that time, New Balance's local sales grew from approximately 25 billion won to 1.2 trillion won last year. As of 2025, New Balance sales accounted for about 30% of E-Land World's fashion division revenue. For this reason, many expect the direct entry of New Balance to place a significant burden on E-Land World.
In the fashion industry, there have been several cases where companies struggled to fill the performance gap following the departure of key global brands. Shinsegae International experienced a slump in performance after its domestic distribution contract with the imported brand Celine ended at the end of 2022. In 2023, the first year without Celine’s revenue, Shinsegae International's sales fell 12.8% year-on-year to 1.3543 trillion won, while operating profit plunged 57.7% from 115.3 billion won to 48.7 billion won.
Industry experts believe that because the transition to direct operation for New Balance will be phased through 2030, the immediate impact on performance may be limited. However, in the long term, the company is in a position where it must establish a new growth pillar to replace it.
In this regard, attention is focused on the role of the newly acquired Hoka. Since the scale of Hoka's domestic business is still far from that of New Balance, the key will be how quickly E-Land can grow the brand in the mid-to-long term.
An official from E-Land Group stated, "The Hoka distribution contract was signed at the E-Land Group level, and we are currently discussing specific details such as the business structure and operational methods," adding, "It has not even been confirmed whether E-Land World will directly manage the business. We expect it to take several months for the final details to be determined."
Assault Scandal Led to Contract Termination; Former CEO Claims It Was "Staged"
Although E-Land has been chosen as the new domestic operator for Hoka, the business rights dispute between the previous distributor and Deckers has yet to be settled. Joyworks, the former local distributor, is currently engaged in international arbitration proceedings with Deckers Asia Pacific regarding the legality and validity of the distribution contract termination.
The conflict surrounding Hoka's domestic business rights originated from an assault controversy involving Jo Sung-hwan, the former CEO of Joyworks. At the end of 2025, when allegations surfaced that the then-CEO had assaulted an employee of a competitor, a boycott of Hoka ensued, leading to his resignation. Using this as a trigger, Deckers notified Joyworks of the termination of its domestic distribution contract.
Joyworks protested, arguing that it was unjust to terminate a company's distribution contract based on the personal issues of an individual, and filed for arbitration with the International Centre for Dispute Resolution (ICDR) under the American Arbitration Association (AAA), challenging the legality of the termination.
Following the contract termination by Deckers, Joyworks' offline Hoka business also went through a liquidation process. Joyworks & Co., an affiliate of Joyworks, acquired the Hoka offline retail business from Joyworks for 25 billion won last September. However, it received a notice of termination for its product supply contract from Deckers in January this year, and the board of directors at Joyworks & Co. resolved to terminate the sales transfer agreement for the Hoka offline retail business on January 9.
Subsequently, an agreement was reached with Joyworks for the settlement and return of products worth approximately 2.6 billion won. To secure the claim on the products subject to settlement, it was confirmed that a subordinate mortgage with a maximum claim amount of 3.4 billion won was set on real estate owned by Joyworks.
Meanwhile, the former CEO, Jo, held a press conference on the 10th, claiming that the assault case he was involved in was a staged incident linked to the competition for Hoka's domestic distribution rights. On this day, Jo stated, "Regardless of the reasons, it is clearly my fault that I committed an act of violence," but added, "A small group of internal and external forces colluded to snatch away Joyworks' exclusive distribution rights." However, the former CEO's side did not provide direct evidence to support the claim that external companies were involved in planning or instigating the assault.
Regarding the legal disputes surrounding Hoka, E-Land stated, "That is a matter between the previous operator and Deckers," adding, "As E-Land has signed a new contract, it is a separate issue from that dispute."