E-Land Group has been appointed as the new domestic distributor for global running shoe brand HOKA. While international arbitration is underway over the termination of the distribution contract between JOYWORKS&Co, the existing master distributor, and U.S.-based Deckers Brands, which operates HOKA, Deckers has picked E-Land Group as its new partner.
E-Land Group said on the 20th that Deckers APAC, the Asia-Pacific unit of Deckers Brands, appointed E-Land Group as HOKA's new distributor in Korea. E-Land Group plans to announce its official position and details on business operations once further discussions are finalized.
The appointment of a new distributor for HOKA stems from a dispute over contract termination between Deckers and JOYWORKS&Co, the existing master distributor. Deckers notified JOYWORKS&Co of the termination of the distribution contract early this year. Controversy grew after it became known in December last year that Cho Seong-hwan, former CEO of JOYWORKS&Co, assaulted two employees of a rival company.
JOYWORKS&Co filed for arbitration with the International Centre for Dispute Resolution (ICDR) under the American Arbitration Association (AAA), arguing that a unilateral termination notice was unfair while the facts of the case had not been sufficiently established. It subsequently secured a first emergency order in April to block Deckers from appointing a new distributor in Korea, and a second emergency order with the same intent was issued in June.
As HOKA raised its profile amid the domestic running boom, interest in the domestic distribution rights surged in the fashion industry. E-Land Group, Musinsa, Shinsegae International(031430), and LF Corp. were mentioned as candidates for the new distributor. In particular, Musinsa actively sought to secure the rights, including by submitting a letter of intent to exclusively distribute HOKA to Deckers.
E-Land Group has built experience in sports brand operations centered on running shoes by managing New Balance domestically for a long period. However, as New Balance declared a direct entry into the Korean market, the partnership between E-Land World and New Balance is expected to continue only until 2030.
Meanwhile, JOYWORKS&Co continued to argue that the termination was unjust and moved to defend its business rights. On the 10th, former CEO Cho held a press conference and apologized again for the assault case, while claiming the incident was orchestrated by internal participants in collusion with external forces to strip JOYWORKS&Co of HOKA's domestic sales rights.
An emergency response committee composed of JOYWORKS&Co employees and partner firms issued a statement that day condemning the selection of E-Land Group as the new distributor. The committee said, "If the calculation is to seize the distribution rights first, drive powerless small and midsize companies to the brink, and simply compensate when legal issues arise, that is an arrogant act." It also announced a protest against E-Land Group and a nationwide signature campaign.