In the first half of 2026, foreign sales at South Korean duty-free shops approached 5 trillion won. The increase in foreign visitors and the industry's shift from catering to bulk buyers from China to attracting individual tourists contributed to this growth. However, despite the rise in the number of customers, the increase in sales has been slower, highlighting a decline in average spending as a new challenge.
According to the Korea Duty-Free Shops Association, foreign sales from January to June 2026 totaled 4.9967 trillion won, a 3.2% increase from 4.8414 trillion won during the same period last year. Compared to the second half of 2025, this figure represents an 11.2% increase.
Monthly sales figures were 786.6 billion won in January, 704.7 billion won in February, 851.3 billion won in March, 879.5 billion won in April, and 857.0 billion won in May. In June, sales reached 917.6 billion won, surpassing 900 billion won for the first time in 14 months since April 2025, when sales were 937.7 billion won.
The increase in foreign buyers has driven sales higher. In June, the number of foreign customers at duty-free shops rose to 1.28 million, a 32.0% increase from 970,000 in the same month last year. The number of buyers increased from 940,000 in January and 910,000 in February to 1.09 million in March, 1.19 million in April, and 1.23 million in May.
However, the amount spent per customer has decreased. In June 2025, the average spending per foreign customer was approximately 848,000 won, but last month it dropped to about 717,000 won, a decline of 15.4%. This reduction is attributed to a decrease in bulk purchases by Chinese buyers and a higher proportion of individual tourists, leading to a dispersion of spending amounts.
The duty-free industry is expanding its product offerings to target individual foreign tourists, focusing on K-beauty, fashion, and daily necessities, while enhancing discount events and brand experiences. Lotte Duty-Free's foreign beauty sales in the first half of the year increased by 55% compared to the same period last year, while food sales rose by 62%.
An industry official stated, "While foreign sales approached 5 trillion won in the first half, we need to monitor whether this growth translates into improved profitability, considering the slowdown in domestic consumption and the decline in average spending."
Meanwhile, domestic consumption at duty-free shops has slowed. Sales to domestic customers were 284.2 billion won in January, dropping to 257.6 billion won in February and 231.2 billion won in March. Although sales rebounded to 239.7 billion won in April and 254.6 billion won in May, they fell again to 211.0 billion won last month.
* This article has been translated by AI.
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