Despite the prolonged economic slump, Korea's appetite for luxury goods seems insatiable. Imports of items like wristwatches and bags reached an all-time high of $8.6 billion, up nearly 3 percent from 2011, according to the Korea Customs Service.

Garments accounted for the highest proportion of goods at 70 percent and topped $6 billion in value.

The customs office says demand for luxury goods is likely to remain strong as the economy begins to recover.