South Korean department stores log 1.7 trillion won in foreign tourist sales

In the first half of 2024 the three leading South Korean department‑store chains—Lotte, Shinsegae and Hyundai—recorded foreign‑tourist sales exceeding 1.72 trillion won, a level that matches about 80 % of their combined 2023 annual foreign‑tourist revenue. Lotte’s foreign sales rose 125 % year‑on‑year, with its flagship Myeongdong store and the new Busan‑East location showing the strongest growth. Shinsegae’s foreign sales were concentrated in its main store, Gangnam and the Centum City branch, which together accounted for over 90 % of its foreign revenue. Hyundai’s flagship store in Seoul also saw a 134 % increase. The surge reflects a shift in visitor spending from duty‑free outlets to city‑center department stores, driven by demand for K‑fashion, beauty products, food and experiential retail. Stores are adapting with foreign‑language services, instant tax refunds and mobile payment options such as Alipay and WeChat Pay.

A Bank of Korea report highlighted that tourism export accounts for only 1.17 % of South Korea’s GDP, lagging behind Japan’s 1.45 %. To close the gap, the bank estimates a 25 % expansion of tourism export is needed, which could be achieved by raising the number of visitors, increasing average daily spend from $177.8 to $223, or extending average stays from 6.5 to 8.2 days. The report also stresses boosting high‑value sectors such as medical and beauty services to raise the overall economic impact of inbound tourism.