Weak won helps foreign shoppers lift Korean department store sales
A weaker won, rising tourism and demand for K-beauty and luxury goods are pushing foreign spending at Korea’s top department stores toward 1 trillion won each this year.
Tourists from the United States look at K-cosmetics at Shinsegae Department Store's Times Square branch in Yeongdeungpo, western Seoul, on July 13.JOONGANG ILBO
A weaker won is drawing foreign shoppers to Korean department stores, with annual spending by foreign customers at the three largest department store chains expected to each surpass 1 trillion won ($670 million) this year.
Foreign tourists were easy to spot at Shinsegae Department Store's Times Square branch in Yeongdeungpo, western Seoul, on Monday.
"I came to buy K-beauty products," said Emma, a 23-year-old visitor from the United States. "Everything from affordable cosmetics to luxury brands is available in one place, so it's convenient."
On the luxury floor, a Southeast Asian shopper browsed designer handbags, while another Western tourist filled three shopping baskets with character merchandise at a store in the basement level. The scene contrasts with previous years, when Chinese tourists accounted for most foreign shoppers at department stores.
The surge in foreign spending has been fueled by growing global interest in Korean content and the weaker won.
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The number of foreign visitors to Korea reached 4.76 million in the first quarter, up 23 percent from a year earlier, according to the Ministry of Culture, Sports and Tourism. Foreign visitors spent a record 2.12 trillion won by card in May, surpassing the 2 trillion won mark for the first time, according to the Korea Tourism Organization.
Luxury brands' global pricing policies have also made shopping in Korea more attractive as the won has weakened against the dollar. If the current pace continues, department stores could each surpass 1 trillion won in annual sales from foreign customers this year.
Lotte Department Store reported 640 billion won in sales from foreign customersduring the first half, up 125 percent from a year earlier. Foreign shoppers accounted for 30 percent of sales at itsmain branch store during the period.
Shinsegae Department Store said first-half sales from foreign customersrose 120 percent on year to 580 billion won, reaching nearly 90 percent of last year's annual total of about 650 billion won.
Hyundai Department Store posted 500 billion won in first-halfsales from foreign customers, equivalent to about 70 percent of its 700 billion won annual total last year.
"The one-stop shopping environment at department stores, where visitors can buy luxury goods, K-beauty products and K-fashion items, is another factor attracting foreign tourists," said Lee Hoon, a professor at Hanyang University's Graduate School of International Tourism.
A couple from Guam visits Korea for the second time on July 13 after their first trip last winter.JOONGANG ILBO
The makeup of foreign shoppers has also changed.
At Shinsegae Department Store, Chinese visitors accounted for 77.5 percent of foreign sales in 2019, but that share fell to 48.5 percent in the first half of this year. Over the same period, the share of U.S. shoppers rose from 1.1 percent to 19.1 percent, while visitors from Asian countries, excluding Southeast Asia, increased from 4.4 percent to 14.9 percent.
Department stores are also expanding services tailored to international shoppers.
Shinsegae is positioning its Myeongdong main branch as a luxury shopping destination for high-spending foreign visitors. Hyundai Department Store has introduced an AI-powered shopping assistance service and recently added a real-time translation feature to help staff communicate with overseas customers.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
