In the intensely competitive global fashion market, the use of cultural elements to enhance design has become increasingly widespread. However, there is a lack of research on challenges and opportunities associated with integrating cultural elements of Minhwa into fashion design. Moreover, diverse approaches to incorporate Korean cultural elements into contemporary fashion designs are still needed. This study aims to reveal the real-world challenges relating to the incorporation of Korean cultural elements, including Minhwa, into fashion design and to clarify the possibility of applying Lin’s cultural levels to cultural aspects in accordance with experts’ views. To establish a theoretical foundation, the literature review on cultural design and Minhwa studies was conducted. It analyzes Minhwa to gain an understanding of the characteristics associated with different cultural levels. In-depth interviews with fashion industry professionals and Minhwa artists were conducted to ascertain their attitudes toward Minhwa use. The study’s major findings were threefold. First, the cultural design facilitates the introduction, promotion, understanding, and maintenance of the culture. Since Minhwa offers rich inspiration linked to Korean culture, Minhwa-related designs can provide new perspectives while still having commercial potential. Second, however, the limitations of existing cultural designs included their being outdated, superficial without interpretation, unsophisticated, or limited. Furthermore, the use of Minhwa is limited since it is difficult to avoid creating superficial and unsophisticated designs in the real world. Third, approaching Minhwa at different cultural levels can promote diverse thinking and reduce the challenges of Minhwa use in design, but the major challenge remains visual expression.