‘K-Shopping’ Captivates Foreigners as Top Three Department Stores Post Record-High Foreign Sales (Comprehensive)

All Three Major Department Store Chains Expected to Surpass 1 Trillion Won in Foreign Sales This Year

Beyond Luxury: K-Fashion, K-Beauty, and Gourmet Experiences Drive Growth

Foreign Customer Demographics Undergoing Dramatic Change

Juhyung Park, CEO of Shinsegae: "K-Shopping Landmark"

Lotte, Shinsegae, and Hyundai—Korea’s three leading department store chains—each achieved their highest-ever foreign customer sales in the first half of this year. Their “tourism-oriented department store” strategies, which now combine luxury shopping with K-fashion, K-beauty, and K-pop content, have fueled this surge in foreign consumer spending. If current trends continue, all three are expected to surpass 1 trillion won in annual foreign sales for the first time this year.

Department Store Trio Sees Surge in Foreign Shoppers

On July 13, Shinsegae Department Store announced that its foreign sales from January to June 2026 reached 580 billion won, a 120% increase compared to the same period last year. This means the company achieved 90% of last year’s total foreign sales (approximately 650 billion won) in just the first half of 2026. This is a record for a half-year period, and the company emphasized that the achievement is particularly meaningful since the figure comes solely from its department store business, without contributions from outlets or shopping malls that typically attract tourists.

Lotte Shopping’s Lotte Department Store also recorded 640 billion won in foreign sales in the first half, up 125% from a year earlier. This is equivalent to 87% of last year’s total foreign sales (734.8 billion won). Lotte Department Store stated, “Since April, we have been breaking monthly records for foreign sales,” adding, “If this trend continues, we expect to surpass last year’s full-year figure before the end of this month.” Industry experts predict that Lotte Department Store is highly likely to reach 1 trillion won in foreign sales for the first time during the third quarter.

Hyundai Department Store also reported approximately 500 billion won in foreign sales for the first half of this year. Last year, its foreign sales reached a record 700 billion won, a 25% increase from the previous year (560 billion won).

The spending patterns of foreign customers have also changed. Whereas luxury purchases used to dominate, spending now extends to fashion, cosmetics, and food and beverages. Shinsegae Department Store’s first-half luxury sales jumped 129.3% year-on-year. Sales in men’s fashion grew by 110%, women’s fashion by 89.4%, cosmetics by 87.3%, and food and beverage (F&B) by 62.9%. At Lotte Department Store, overseas luxury sales rose by 130%, while fashion categories increased by 135%.

The makeup of foreign customers is also shifting. At Shinsegae Department Store, the share of Chinese customers, which accounted for 77.5% of all foreign sales in 2019, dropped to 48.5% in the first half of this year. Meanwhile, the proportion of American customers climbed from 1.1% to 19.1%, and visitors from Southeast Asia and other Asian countries grew from 4.4% to 14.9%. Demand, once concentrated on Chinese tourists, is now diversifying to the U.S., Southeast Asia, and beyond.

Myeong-dong, Gangnam, Yeouido, and Busan: Key Stores Lead Performance

Stores located in popular tourist districts drove the positive results. Shinsegae’s main branch attracted foreign visitors by linking the Myeong-dong commercial district with K-pop content at Shinsegae Square. Currently, one out of every three visitors to the flagship store is a foreigner. The Gangnam branch, with its proximity to Banpo Hangang Park, Sebitseom, and the JW Marriott Hotel, combined these tourist infrastructures with the “House of Shinsegae” food hall and “Suite Park,” establishing itself as a destination for customers from over 120 countries. The Centum City store in Busan posted the highest growth rate, with foreign sales surging 230% thanks to an increase in cruise tourists at Busan Port.

Lotte Department Store’s main Myeong-dong branch led the company’s growth, with first-half foreign sales up 140% year-on-year. Although the store’s annual sales total about 2 trillion won, foreign customers account for approximately 30% of those sales. The K-fashion specialty zone “Kinetic Ground” has become a prime shopping destination for international visitors, with foreign customers making up about 70% of its total sales. Foreign sales at the Jamsil branch rose by 120%, the Busan main branch by 150%, and Lotte Mall Dongbusan branch by 170%, reflecting robust demand from Busan tourism.

At Hyundai Department Store, its flagship “The Hyundai Seoul” stood out, with foreign sales accounting for more than 20% of total sales and rising 134% year-on-year in the first half. The company plans to expand K-pop, beauty, and food pop-ups targeting global Millennials & Gen Z, and to leverage the strategic location of its Trade Center branch—adjacent to COEX and the City Airport Terminal—to attract business tourists.

Competition Intensifies for Foreign Customer Services

Competition for foreign customer services is also heating up. Shinsegae Department Store now has more than 300,000 foreign members from over 120 countries. The company is expanding partnerships with the Korea Tourism Organization and Seoul Tourism Organization and will strengthen global payment services such as UnionPay, Alipay, LINE Pay, and JCB.

Lotte Department Store’s dedicated “Lotte Tourist Membership” has surpassed 130,000 sign-ups just seven months after launch. The company has opened official channels on Xiaohongshu, Gaode Map, and Dazhong Dianping, and in September plans to become the first in the industry to introduce both UnionPay QR payment and NFC QuickPass.

Hyundai Department Store has added real-time voice translation to its AI shopping assistant “Heydy Global,” launching Spanish and French services this month—the first in the industry. The company is also expanding VIP partnerships with overseas retailers such as Thailand’s Siam Piwat Group, Japan’s Hankyu Department Store, and Singapore’s Marina Bay Sands, while planning to broaden its alliances to China and Europe.

Juhyung Park, CEO of Shinsegae, stated, “Shinsegae Department Store has solidified its position as Korea’s leading global tourism destination, where visitors can experience K-shopping, K-gourmet, and K-content all in one place,” adding, “With the world-class Gangnam store, the flagship in Myeong-dong, and Centum City in Busan, we will continue to strengthen our position as a landmark for K-shopping through unmatched store competitiveness and differentiated branding.”

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