Courtesy of Lotte Department Store
SEOUL, January 23 (AJP) - Amid concerns over soaring consumer prices due to the weaking won against the greenback, South Korea has become a destination for luxury goods among many overseas shoppers. Foreign tourists have been lining up outside department stores in central Seoul even before they open for days' business.
According to industry data released on Friday, foreign sales at Shinsegae's main branch in downtown Seoul jumped 82 percent last year, while its Gangnam branch saw a 52 percent increase.
Sales at Lotte and Hyundai department stores also showed a similar trend, as purchases of luxury goods by foreign shoppers are rising fastest. In particular, foreign sales at Hyundai accounted for about 20 percent of its total sales.
The main draw is price. With the weakening won, luxury goods in South Korea are nearly 10 percent cheaper for foreigners, and tax refunds for tourists can reduce prices even further.
To capitalize on the trend, department stores are stepping up efforts to attract more overseas shoppers. Hyundai is preparing a tailored shopping program for foreign travelers, picking them up at Incheon International Airport upon arrival, while Shinsegae plans to expand promotions targeting short-term visitors and cruise passengers in the southern port city of Busan.
Lotte introduced a foreigner-only membership credit card in December, offering a 5-percent discount and other benefits. Around 13,000 people have already signed up in just a month.
Department stores anticipate strong sales as foreign arrivals are on the rise. According to the Korea Tourism Organization, some 17.42 million foreign tourists visited South Korea during the first 11 months of last year, up 15.4 percent from 15.10 million a year earlier. With December's figure included, the total is expected to surpass the previous record of 17.50 million set in 2019.
"Foreign spending has become a key factor in ringing department store registers," an industry insider said.
According to industry data released on Friday, foreign sales at Shinsegae's main branch in downtown Seoul jumped 82 percent last year, while its Gangnam branch saw a 52 percent increase.
Sales at Lotte and Hyundai department stores also showed a similar trend, as purchases of luxury goods by foreign shoppers are rising fastest. In particular, foreign sales at Hyundai accounted for about 20 percent of its total sales.
The main draw is price. With the weakening won, luxury goods in South Korea are nearly 10 percent cheaper for foreigners, and tax refunds for tourists can reduce prices even further.
To capitalize on the trend, department stores are stepping up efforts to attract more overseas shoppers. Hyundai is preparing a tailored shopping program for foreign travelers, picking them up at Incheon International Airport upon arrival, while Shinsegae plans to expand promotions targeting short-term visitors and cruise passengers in the southern port city of Busan.
Lotte introduced a foreigner-only membership credit card in December, offering a 5-percent discount and other benefits. Around 13,000 people have already signed up in just a month.
Department stores anticipate strong sales as foreign arrivals are on the rise. According to the Korea Tourism Organization, some 17.42 million foreign tourists visited South Korea during the first 11 months of last year, up 15.4 percent from 15.10 million a year earlier. With December's figure included, the total is expected to surpass the previous record of 17.50 million set in 2019.
"Foreign spending has become a key factor in ringing department store registers," an industry insider said.
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