Foreign shoppers fuel record first-half sales at South Korea's department stores

The Hyundai Seoul located in Seoul/ Courtesy of Hyundai Department

SEOUL, July 15 (AJP) - Foreign tourists spent a record 1.72 trillion won (.24 billion) at South Korea's three largest department store chains in the first half of 2026, as inbound travelers broadened their spending from luxury goods to Korean fashion, beauty and dining.

Lotte Department Store, Shinsegae Department Store and Hyundai Department Store each posted record first-half foreign sales, according to industry data released on Tuesday. Lotte led with 640 billion won in foreign sales, followed by Shinsegae at 580 billion won and Hyundai at about 500 billion won. All three retailers expect annual foreign sales to surpass 1 trillion won this year if current growth continues.

Lotte said its first-half foreign sales reached a record 640 billion won, nearly matching its full-year 2025 total of 734.8 billion won. The retailer expects to exceed last year's annual figure this month and said foreign sales could top the 1 trillion won mark as early as the third quarter.

Foreign sales of luxury goods at Lotte rose about 130 percent from a year earlier, while fashion sales climbed 135 percent. At its flagship Myeong-dong store, foreign shoppers accounted for roughly 30 percent of total sales, with foreign revenue jumping 140 percent on year. At its K-fashion specialty zone, "Kinetic Ground," overseas visitors generated about 70 percent of total sales.

Tourist spending has also expanded beyond central Seoul. Foreign sales at Lotte World Mall in Jamsil rose 120 percent in the first half, while its Busan flagship store and Dongbusan outlet posted increases of 150 percent and 170 percent, respectively.

Shinsegae reported first-half foreign sales of 580 billion won, up 120 percent from a year earlier and equivalent to about 90 percent of its full-year 2025 foreign sales.

The retailer said the composition of overseas shoppers has become more diversified. Chinese customers accounted for 48.5 percent of foreign sales in the first half, down from 77.5 percent in 2019, while the share of U.S. customers increased to 19.1 percent from 1.1 percent over the same period. Visitors from Southeast Asia and other Asian markets also increased their share to 14.9 percent from 4.4 percent.

By category, luxury goods sales rose 129.3 percent, followed by men's fashion at 110 percent, women's fashion at 89.4 percent, cosmetics at 87.3 percent and food and beverages at 62.9 percent, suggesting tourist spending is broadening beyond high-end brands into Korean lifestyle products.

Hyundai Department Store posted about 500 billion won in foreign sales during the January-June period, already exceeding 70 percent of its full-year 2025 total of around 700 billion won. Foreign sales at its flagship The Hyundai Seoul store surged 134 percent from a year earlier, with overseas visitors accounting for more than 20 percent of total sales. The company also expects annual foreign sales to exceed 1 trillion won for the first time.

Department store operators attributed the growth not only to the recovery in inbound tourism but also to a shift in travel patterns, with independent travelers increasingly viewing department stores as destinations where they can experience K-fashion, K-beauty, food and cultural offerings in one location.

Retailers are also expanding services tailored to overseas visitors. Hyundai has added real-time voice translation to its AI shopping assistant and expanded language support to Spanish and French, while strengthening partnerships with overseas retail operators.

Lotte plans to introduce QR code and near-field communication (NFC) payments through a partnership with UnionPay in September and has expanded its presence on major Chinese digital platforms. Shinsegae said it is working with tourism authorities to attract more visitors from North America, Europe and Taiwan while strengthening promotions with global payment platforms.