Record Foreign Tourism Fuels Busan Department Store Sales

South Korea’s second-largest city, Busan, is experiencing an unprecedented surge in foreign tourism, leading to record-breaking department store sales. This remarkable growth in Busan’s retail sector is even outpacing that of Seoul’s major retailers, highlighting a significant shift in foreign visitor spending patterns.

From January to May, Busan welcomed nearly 1.94 million international visitors, marking an impressive 40 percent year-on-year increase and almost doubling the national average growth rate, according to recent city data. This influx translated into substantial economic impact, with foreign visitor spending reaching 132.2 billion won ($89 million) in May alone, positioning Busan as the second-highest city nationwide for tourist expenditure, just behind the capital.

The impact of this tourism boom is most evident within Busan’s vibrant department store landscape. Shinsegae’s iconic Centum City branch reported an astounding 230 percent increase in foreign sales during the first half of the year. Similarly, Lotte’s flagship store in Busan saw a robust 150 percent growth in international purchases. Both figures notably surpassed the sales growth reported by leading department stores in Seoul, underscoring Busan’s growing appeal as a premier shopping destination for global travelers.

Foreign shoppers are also progressively contributing a larger proportion to overall sales revenue. At both Lotte’s Busan flagship and Dongbusan branches, international sales soared from a mere 3 percent of total revenue in 2024 to approximately 10 percent in the first half of this year, indicating a strong and accelerating trend.

Several high-profile events have significantly contributed to Busan’s recent tourism surge. These include the highly anticipated BTS concert held last month, which drew a massive international audience, and the city’s prestigious role as host of the 48th session of the UNESCO World Heritage Committee, scheduled from Monday until July 29.

To further capitalize on this burgeoning interest, Shinsegae Department Store is actively promoting Korean heritage events at its Busan location.

A Shinsegae Department Store official emphasized their commitment, stating, “As a landmark for K-shopping, we are dedicated to showcasing Korean craft, traditional hanbok, K-goods, and diverse regional cultural content.”

Beyond Busan’s impressive performance, its success story is a reflection of a broader, nationwide phenomenon within the department store sector.

Indeed, the nationwide surge in foreign spending is propelling Korea’s retail industry to new heights. The country’s three leading department store operators have collectively achieved record foreign sales in the first half of the year and are on track to surpass an unprecedented 1 trillion won in total foreign sales for the entire year.

Lotte Department Store reported substantial foreign sales of 640 billion won in the first six months, already accounting for 87 percent of its total foreign sales from 2025. Shinsegae also hit a record high with 580 billion won in foreign sales, marking a remarkable 120 percent year-on-year increase. Hyundai Department Store contributed 500 billion won during the same period, already reaching approximately 70 percent of its 2025 foreign sales total.

Industry experts attribute this robust growth to a combination of factors, including a more favorable exchange rate with a weaker won, the development of new experiential retail spaces centered around rich Korean culture, advanced payment systems, and innovative artificial intelligence-powered services enhancing the shopping experience.

“Korean department stores are evolving into dynamic tourist attractions themselves, offering more than just luxury shopping. They are now vibrant hubs for K-fashion, K-beauty, and authentic Korean culinary experiences,” noted an industry official, highlighting the comprehensive appeal to international visitors.