Shinsegae Department Stores Achieve Record Q1 Performance as K-Content & Tourism Drive Foreign Sales Surge
Korean retail giant Shinsegae has announced its strongest first-quarter financial results ever, propelled by robust sales and balanced growth across its diverse business portfolio.
For the January to March period this year, Shinsegae reported impressive consolidated sales of 3.21 trillion won ($2.16 billion), marking an 11.7 percent year-over-year increase. Operating profit soared by an even more significant 49.5 percent, reaching 197.8 billion won.
Shinsegae’s core department store division also achieved record-breaking earnings, posting 2.03 trillion won in sales and 141 billion won in operating profit. This represents a substantial 13 percent and 30.7 percent growth, respectively, compared to the first quarter of last year. The company attributes this exceptional performance to sustained strategic investments, an enhanced luxury brand portfolio, and innovative pop-up store initiatives across its nationwide locations.
A key driver of this success was a dramatic increase in international customer spending. Propelled by the global surge in popularity of Korean content (K-content) and a revitalized tourism sector, purchases made by foreign nationals at Shinsegae department stores nearly doubled from Q1 2025. Notably, the flagship department store in Seoul’s bustling Myeong-dong tourist district experienced an astounding 140 percent year-on-year rise in sales to overseas visitors during the quarter.
Among Shinsegae Group’s subsidiaries, Shinsegae International showcased remarkable growth, with operating profit skyrocketing by 452.6 percent year-on-year to 14.8 billion won. This significant rebound was fueled by strong sales in imported fashion and high-demand cosmetics.
Further bolstering the group’s financial health, Shinsegae’s duty-free business successfully returned to profitability, reporting an operating profit of 10.6 billion won. This turnaround was achieved through expanded partnerships with global brands, optimized discount strategies for major sales events, and the introduction of popular Korean content offerings to travelers.
On the same day, Shinsegae’s board of directors approved the company’s inaugural quarterly dividend, setting it at 1,300 won per common share, signaling a commitment to enhanced shareholder returns.
A Shinsegae official commented, “Despite challenging external market conditions, our proactive strategies to optimize business structures and our strategic investments have led to significant growth in both revenue and profitability. We are dedicated to strengthening our shareholder return policies and will continue to invest strategically and improve our operations to enhance the value for both our shareholders and the company.”
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