Lab-grown diamonds sparkle in Korea’s jewelry market

An employee of local jewelry maker EclatBaci in Seoul shows a ring with a lab-grown diamond, Jan. 9. Korea Times photo by Baek Byung-yeul

By Baek Byung-yeul

• Published Jan 15, 2025 4:50 PM KST
• Updated Jan 16, 2025 2:39 PM KST

A 42-year-old Seoul resident, who identified herself only by the family name Seo, recently encountered a pleasant surprise during a jewelry shopping trip. She discovered that lab-grown diamonds, which have the same properties as natural diamonds, come with a significantly lower price tag.

"I went to a nearby jewelry shop with the vague idea of buying diamond products, but the owner introduced me to lab-grown diamonds. I was surprised by how much cheaper they were and how good the quality was," Seo said. "I ended up purchasing a pair of earrings and a bracelet with lab-grown diamonds."

She expressed satisfaction with her purchases at a price lower than her initial budget and was also pleased with the wider variety of designs available.

"I was able to buy various diamond products for much less than I had expected and people around me kept asking where I got them and what lab-grown diamonds were. They also bought lab-grown diamond products afterward and told me they were very satisfied, too," she said.

As seen in Seo's case, demand for lab-grown diamonds is noticeably increasing in Korea lately.

Lab-grown diamonds are manufactured at high temperatures and intense pressure, mimicking the natural process that creates diamonds in the earth over millions of years. These artificially created diamonds are indistinguishable to the naked eye from natural varieties, even for experts. Only specialized equipment can differentiate between the two.

However, they come at a fraction of the cost, sometimes as much as one-tenth the cost of natural diamonds. This drives increased demand among Koreans seeking to purchase diamonds at affordable prices, according to officials from the local jewelry industry.

Diamonds are the most popular gemstone among Koreans, holding the undisputed top spot. According to a survey conducted last July by Gallup Korea involving 1,777 people aged 13 and older, 59 percent chose diamonds as their favorite gemstone. Following diamonds were emeralds at 9 percent, sapphires and pearls both at 7 percent and rubies at 6 percent.

Experts predict that the advent of lab-grown diamonds will continue to fuel the popularity of this gemstone.

From synthetic to lab-grown

Kim Tae-soo, publisher of an online newspaper specializing in Korea's jewelry market, explained that lab-grown diamonds, while artificially created, have existed for some time. However, the term "lab-grown" was adopted rather recently, instead of "synthetic," to make these diamonds more appealing to consumers.

“Lab-grown diamonds, or what were previously called synthetic diamonds used for industrial purposes, have existed for decades. The term ‘lab-grown diamond’ was coined by the jewelry industry to make them more appealing to consumers. Initially, high production costs prevented their use in the fashion and wedding jewelry markets, but advancements in technology in the 2010s led to lower prices and wider consumer availability,” Kim explained.

Kim attributed the popularity of lab-grown diamonds to marketing strategies that emphasize environmental and ethical values, as well as affordability at one-tenth the cost of natural diamonds.

“The marketing focus shifted towards emphasizing their environmental benefits and ethical sourcing, portraying them as affordable, eco-friendly and ethical alternatives. But the biggest driver of their popularity is undoubtedly the price. Being available at about one-tenth the price of natural diamonds is their biggest draw,” Kim said.

Redefining value in jewelry market

Lim Sung-ok, CEO of Seoul-based jewelry maker EclatBaci, highlighted how lab-grown diamonds are reshaping consumer preferences.

“Just as farmed fish are sometimes perceived as tastier than wild-caught fish, lab-grown diamonds are increasing their market share steadily,” he said.

Lim also noted that demand for lab-grown diamonds has surged dramatically in Korea over the past two to three years.

“Although natural diamonds still hold a larger share in the domestic market, the price of lab-grown diamonds has been decreasing steadily due to advancements in manufacturing technology and an increase in suppliers,” he said.

The CEO said lab-grown diamonds are already being recognized by consumers and the jewelry industry and are redefining how they view this precious jewel.

“I personally believe that the increasing use of lab-grown diamonds by global luxury jewelry brands will further boost their demand and even I recommend lab-grown diamonds to consumers. Natural diamonds are graded with about 10 different quality levels, but lab-grown diamonds are produced with high quality from the start, allowing consumers to purchase relatively higher-quality products at lower prices,” Lim said.

Unveiling new charm of diamond

Lab-grown diamonds are also revolutionizing jewelry design, expanding creative opportunities beyond price advantages.

Han Gi-pyeong, CEO of Leehan Diamond, a diamond wholesale company based in Seoul's Jongno District — a hub for Korea’s jewelry trade — highlighted the impact of this trend.

"The advantage of lab-grown diamonds is that jewelry makers can create various designs of products that they couldn't attempt before due to the high price of diamonds. This will give new value to diamonds as jewelry and expand the diamond market,” Han said.

He noted that the high prices of natural diamonds limit experimenting with various shapes, such as the oval cut, which is more feasible with lab-grown diamonds.

“For example, designs are now being produced featuring a 5-carat oval-cut lab-grown diamond, which would be extremely expensive to create with natural diamonds and thus rarely attempted," the CEO said. "I predict that jewelry designers utilizing lab-grown diamonds will lead to a more vibrant and diverse diamond market, offering bolder and more sophisticated creations."

Wholesale trends

Drawing from his experience in the sector, Han noted that wholesale jewelry suppliers in Jongno District supply about 80 percent of the nation’s jewelry and most of them now offer lab-grown diamonds alongside natural ones.

“Our company deals exclusively with businesses that sell diamonds to consumers. I started handling lab-grown diamonds in 2022. Although lab-grown diamonds started to be sold in Korea in 2021, I waited a while due to the continuous price drops. We handle both natural and lab-grown diamonds and now over 70 percent of our sales come from lab-grown ones,” the wholesale company CEO said.

Han elaborated on the import process, highlighting the global supply chain dynamics. India, a major supplier of lab-grown diamonds, can produce a 5-carat diamond in about 10 days. This led to the production of approximately 1.5 million carats in 2023.

"Polishing these rough stones takes another several days in India. (Once completed,) Korean wholesalers import these polished lab-grown diamonds for domestic distribution,” the CEO said.

Han also pointed out challenges within the industry. "While sales volume has increased significantly due to lab-grown diamonds' popularity, profit margins remain much smaller compared to natural diamonds. However, given current consumer trends, it’s impossible not to trade lab-grown diamonds."

Jewelry newspaper publisher Kim observed that the market has reached a turning point due to the falling price of lab-grown diamonds.

"The profit margin for a one-carat natural diamond can be over 1 million won ($690) for the seller, whereas it's only hundreds of thousands of won for a lab-grown diamond," he said.

"If sellers lack profit margins, the market could shift back towards natural diamonds. Suppliers of natural diamonds will likely control supply to stabilize prices, preventing a dramatic collapse in the price and value of natural diamonds, but the popularity of lab-grown diamonds is expected to continue for some time.”