China’s Kutesmart to Acquire South Korea’s apM Assets for $73M

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Kutesmart, a Chinese custom clothing manufacturer, plans to take ownership of subsidiaries operated by a South Korean trendy apparel services provider, paying approximately CNY 500 million (USD 72.7 million) in cash. This strategic move aims to introduce the company’s proprietary artificial intelligence technology to one of Asia’s prominent fashion districts.

The company intends to acquire controlling interests in some or all of the provider’s 13 subsidiaries, which are situated across three shopping malls in Seoul’s Dongdaemun district. According to a memorandum of understanding with the sellers, these units support around 1,100 independent fashion designer brands, generating revenue through rental income, management fees, and operational services.

The agreement states that the involved parties should formalize the contract by May, with the transaction and asset transfer scheduled for completion by the end of July. Specifics such as pricing and asset details will be finalized after diligent negotiations and thorough due diligence.

This acquisition allows Kutesmart to utilize its manufacturing capabilities to penetrate Dongdaemun’s supply chain, potentially manage and invest in Korean casual fashion brands, and collaborate with local designers. The goal is to bolster its expertise in trendy apparel and expand its global footprint.

Dongdaemun, recognized as one of Asia’s largest wholesale fashion centers, features over 20 shopping malls and 30,000 stores, making it a prime location for retail expansion.

Furthermore, this deal marks the first time Kutesmart will deploy its AI technology internationally, supporting commercialization, revenue growth, and increased market presence. The technology, built on the company’s proprietary enterprise operating system, employs three AI agents—Kuxiaojiang, Kuxiaoyi, and Kuxiaozhi—that provide comprehensive solutions from market analysis and product design to manufacturing and distribution.

Shares of Kutesmart in the Shenzhen market closed 0.8% higher at CNY 20.08 (USD 2.92) per share, after reaching a 3.2% increase earlier in the trading session.