Department Stores Enter the '1 Trillion Won Era' in Foreign Sales... Lotte Breaks New Ground, Shinsegae and Hyundai Close Behind

Lotte Becomes First in Industry to Surpass 1 Trillion Won,
Myeongdong and Jamsil Lead Foreign Sales Growth

Shinsegae at 850 Billion, Hyundai at 805 Billion... Both Expected to Reach 1 Trillion This Year

Foreign Spending Expands Beyond Luxury to K-fashion and K-food

Lotte Department Store has become the first domestic department store to surpass 1 trillion won in annual sales to foreign customers. This rapid growth in foreign consumption is driven by an increase in inbound tourists as well as the growing global interest in Korean content such as K-fashion and K-food. Shinsegae Department Store and Hyundai Department Store are also expected to exceed 1 trillion won in foreign sales within this year.

As of the morning of October 6, Lotte Department Store announced that its cumulative foreign customer sales for this year have surpassed 1 trillion won. The company had already exceeded last year’s record annual foreign sales of 734.8 billion won in July, and entered the 1 trillion won range with about three months remaining in the year.

Foreign tourists are walking along Myeongdong Street in Jung-gu, Seoul. Photo by Yonhap News.

Foreign consumption was led by major shopping districts such as Myeongdong and Jamsil. Lotte Town Myeongdong’s foreign sales reached 520 billion won this year. Lotte Town Jamsil also saw its foreign sales double compared to last year, and North American and European customers now account for as much as 35% of the total.

Foreign consumption is also expanding in locations outside of Seoul. Lotte Department Store branches outside the metropolitan area nearly doubled their foreign sales compared to last year, increasing by about 2.5 times. In the Busan area, sales rose by 150%, while Jeonju, Gwangju, and other Honam region stores recorded sales growth rates of 100%.

The types of products purchased by foreign consumers are also diversifying. While spending was previously concentrated on luxury goods and cosmetics, it is now expanding to K-fashion, food and beverages, and lifestyle products. Both luxury and K-fashion sales to foreign customers at Lotte Department Store have more than doubled compared to last year. Food hall and restaurant sales to foreign clientele also increased by 50%.

Hyunseok Jung, CEO of Lotte Department Store, said, “We are honored to set a new milestone as the first in the industry to reach 1 trillion won in foreign sales. As international customers seeking K-culture and authentic Korean lifestyle experiences become a core segment, we will continue proactively addressing global customer needs, further enhancing unique shopping experiences and content, and growing into Korea’s leading global department store.”

Foreign customers visiting the Sports Leisure Hall on the 7th floor of Lotte Department Store Main Branch. Lotte Department Store

Other department stores are showing similar trends. Shinsegae Department Store recorded 850 billion won in foreign sales from January to September this year, more than twice the figure for the same period last year. At Shinsegae’s main branch, one in three visitors is a foreign national, and foreign sales at the Busan Centum City branch also more than doubled year-on-year.

As of October 5, Hyundai Department Store recorded cumulative foreign sales of 805 billion won. At The Hyundai Seoul branch, foreign sales jumped 135% compared to last year, and about one in four visitors is foreign according to the statistics.

If this upward trend continues, Shinsegae and Hyundai are also expected to surpass 1 trillion won in foreign sales within this year. However, there are differences in how each retailer calculates these numbers: Lotte includes department stores, outlets, and shopping malls; Hyundai combines department store and outlet sales; while Shinsegae only counts department store sales.

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