Tourists flash the cash as spending tops 12 trillion won in H1

Foreign tourists are arriving in Korea in droves — and with money to spend.

Some 10.71 million foreign tourists visited Korea in the first half of 2026, up more than 21 percent from the same period last year, according to the Korea Tourism Organization on Wednesday, boosting sales as spending topped 12 trillion won ($8.5 billion).

Spending has risen even faster than visitor numbers. Foreign tourists spent 12.08 trillion won on credit cards in Korea from January through July, up 48.2 percent from 8.15 trillion won during the same period last year.

Demand for travel to Korea was boosted by K-content events, including BTS’s performance at Gwanghwamun in central Seoul in March. The surge in the number of tourists was also due to major holiday periods in neighboring countries, notably Japan’s Golden Week in late April to early May and China’s Labor Day holiday in early May.

The increase has translated directly into higher sales for retailers. Department stores have been among the biggest beneficiaries, particularly those in major tourist districts with strong offerings in categories popular with foreign shoppers, such as luxury goods, fashion and beauty products.

Foreign customer sales at Shinsegae Department Store reached 580 billion won in the first half of 2026, a whopping 120 percent increase from the same period last year. Its luxury sales rose 35 percent on year, while fashion sales increased 10.1 percent. Home goods and food sales grew 16.6 percent and 13.7 percent, respectively.

Supported by higher spending from foreign customers, Shinsegae’s department store business recorded gross sales of 2.02 trillion won in the second quarter, up 15.5 percent from the same period last year. Its operating profit jumped 53.5 percent on year to 108.8 billion won.

Shinsegae also posted record consolidated gross sales and operating profit for the first half of the year, at 6.36 trillion won and 365 billion won, respectively.

Hyundai Department Store likewise benefited from an increase in foreign customers. Net sales from its department store business rose 8.3 percent on year to a record 1.28 trillion won in the first half of 2026. Its operating profit climbed 47.7 percent to 246 billion won over the same period.

Growth was even sharper at stores frequented by foreign tourists. Foreign customer sales at The Hyundai Seoul in Yeouido, Yeongdeungpo District, western Seoul, surged 134 percent in the first half of 2026 from the same period last year.

Hyundai Department Store’s Trade Center branch in Gangnam District, southern Seoul, saw a jump of 131 percent in sales. Foreign customers accounted for roughly 20 percent of total sales at each store.

Foreign spending is also spreading beyond international luxury brands to Korean fashion and beauty products.

When The Hyundai Seoul first opened in 2021, its foreign customers came predominantly from China, Japan and the United States. Its customer base has since expanded to countries such as the United Arab Emirates and Kazakhstan, with visitors from some 180 countries now shopping at the department store.

Lotte Department Store also reported favorable results, supported by the increase in foreign tourists and strong sales across product categories, particularly fashion.

Lotte Shopping’s department store division posted revenue of 891.2 billion won in the second quarter, up 9.2 percent from the same period last year and the highest ever for a second quarter. Operating profit surged 84 percent on year to 119.7 billion won.

Lotte Shopping plans to step up marketing aimed at foreign customers in the second half of the year. The retailer plans to strengthen its stores in major tourist districts such as Myeongdong in central Seoul and Jamsil in Songpa District, southern Seoul. The company also plans to expand marketing initiatives across its affiliates, especially its membership programs for foreign customers.

The tourist shopping spree isn’t just confined to department stores. Convenience stores are cashing in, too.

While foreign spending was previously concentrated on luxury goods, cosmetics and duty-free shopping, it has increasingly expanded into everyday purchases such as K-food, ready-to-eat meals and products created through intellectual property, or IP, collaborations.

Foreign customer sales at the convenience store chain GS25 jumped 67.2 percent in the second quarter from the same period last year, based on transactions made using foreign payment methods.

Exclusive products developed in collaboration with popular characters and celebrities, such as the Japanese character Monchhichi and Korean mukbang creator Tzuyang, are believed to have helped attract foreign customers.

GS25’s second quarter revenue rose 7.1 percent on year to 2.38 trillion won, while operating profit increased 21 percent to 71.4 billion won. Average daily sales at existing stores also rose 7.5 percent on year.

BGF Retail, which operates the convenience store chain CU, also cited the increase in foreign tourists as a major factor behind its second quarter growth.

BGF Retail’s revenue from April through June increased 6 percent on year to 2.43 trillion won, while operating profit jumped 22.3 percent to 84.9 billion won.

CU is tailoring its offerings to different groups of foreign customers by not only operating stores with products geared toward tourists but also stocking some locations with international ingredients for foreign residents living in Korea.

As tourist spending expands into Korean fashion, beauty products, food and convenience store goods, the benefits of the increase in foreign visitors are spreading across Korea’s retail industry.

Competition for foreign shoppers is expected to intensify as major department stores, convenience stores and other retailers strengthen products and services aimed at the growing number of tourists visiting Korea.

BY JEONG JAE-HONG [lee.jiwon10@joongang.co.kr]