Shinsegae Department Store’s First-Half Foreign Sales Hit 580 Billion Won... On Track for 1 Trillion This Year

Record-High Performance in the First Half of the Year
Diverse Nationalities and Shopping Categories
K-Culture Integration Makes It a Must-Visit K-Shopping Destination

Shinsegae Department Store’s foreign customer sales in the first half of this year exceeded 500 billion won, marking the highest half-yearly performance in its history. If this trend continues, annual foreign sales are expected to surpass 1 trillion won for the first time ever.

On July 13, Shinsegae Department Store announced that its foreign customer sales from January to June reached 580 billion won, a 120% increase compared to the same period last year. Last year, annual foreign customer sales were approximately 650 billion won, meaning that this year, Shinsegae achieved about 90% of last year's annual total in just the first half.

The department store attributed this strong performance to its unrivaled luxury brand competitiveness, distinct K-culture content developed in partnership with K-pop artists and the Korea Tourism Organization, and convenience services made possible by collaborations with global payment providers, all of which have driven high levels of interest from foreign customers.

A foreign customer is shopping at Shinsegae Department Store. Courtesy of Shinsegae Department Store.

Nationality and Consumption Have Diversified

The composition of foreign customers has also changed. In 2019, Chinese customers accounted for 77.5% of all foreign sales, but this share fell to 48.5% in the first half of this year. Meanwhile, the proportion of American customers rose from 1.1% to 19.1%, while customers from Southeast Asia and other Asian countries increased from 4.4% to 14.9%. Japanese customers made up 3.3%, and customers from other countries accounted for 14.2%.

Purchases were not limited to luxury goods. In the first half, foreign luxury sales increased by 129.3% year-on-year, while sales of men's fashion rose by 110%, women's fashion by 89.4%, cosmetics by 87.3%, and food and beverage (F&B) by 62.9%. The department store explained that growing interest in K-fashion, K-beauty, Korean cuisine, and the overall Korean lifestyle has translated into increased consumption. Shinsegae’s foreign customer-exclusive membership program now boasts over 300,000 members from more than 120 countries.

Shinsegae Department Store Headquarters Shinsegae Square Exterior View. Provided by Shinsegae Department Store.

Landmark Strategy Integrating Tourist Attractions and K-Culture Proves Effective

By location, demand from tourists and strong site competitiveness have driven performance. The main branch has attracted foreign visitors by connecting Myeongdong tourism with K-pop content at Shinsegae Square. Especially at Shinsegae Square, showcasing global K-pop content such as BTS and BOYNEXTDOOR has established it as a new tourist hotspot in Myeongdong. With luxury brand shopping conveniently linked in a single flow, currently, one out of every three visitors to the main branch is a foreigner.

The Gangnam branch has established itself as a destination for customers from over 120 countries by leveraging tourism around the Han River and unique food and beverage offerings. Tourist infrastructure such as Banpo Hangang Park, Sebitseom, and JW Marriott Hotel, along with differentiated culinary concepts like House of Shinsegae Food Hall and Sweetpark, are cited as key drivers attracting foreign customers. The Centum City branch recorded the highest growth rate, with foreign sales in the first half rising by 230% year-on-year, boosted by an increase in cruise tourists at Busan Port.

Shinsegae Department Store plans to further expand collaboration with organizations such as the Korea Tourism Organization and Seoul Tourism Organization in the second half of the year, and strengthen tourism marketing targeting the Americas, Europe, and Taiwan. The company also plans to expand partnerships with global payment providers including UnionPay, Alipay, LINE Pay, and JCB to attract more foreign customers.

Ju-hyung Park, CEO of Shinsegae, stated, "Shinsegae Department Store has established itself as a top global tourism destination in Korea, where visitors can experience K-shopping, K-gourmet, and K-content all in one place. With world-class locations like the Gangnam branch, the main branch in Myeongdong, and the Centum City branch in Busan, we will continue to maintain our status as a K-shopping landmark through unparalleled store competitiveness and distinct brand differentiation."

This content was produced with the assistance of AI translation services.