Retail / news
Foreigner Sales Remain Soft in South Korean Duty Free Despite Rising Shopper Numbers
International customers continue to dominate South Korean downtown duty-free sales, accounting for 85.7% of revenue on just 51.5% of shoppers, but their spending eased month-on-month in May, signaling persistent softness.
The Korea Duty Free Association reported May nationwide revenues of KRW1.11 trillion ($761.7 million), down nearly 0.7% from April but up 5.62% year-on-year. Total customer numbers rose 1.9% month-on-month to 2,618,794.
Sales to foreign visitors fell 2.5% month-on-month to KRW857 billion ($587.2 million), though they increased 10.7% versus May 2024. Foreign shopper numbers reached 1,229,264, up 3% from April and 28.5% year-on-year.
Korean nationals spent KRW254.6 billion ($174.5 million) in May, a 6.2% increase over April but an 8.6% decline compared to the same month last year. Korean shopper numbers edged up 1% month-on-month but dropped 14% year-on-year.
A Seoul-based travel retailer described the foreigner segment as experiencing "sustained stagnation," while domestic sales picked up slightly. International travelers accounted for an outsized share of downtown sales, underscoring their importance to the sector despite reduced average spending.
The data excludes inflight retail and highlights ongoing challenges for South Korea's duty-free industry, which has seen a post-pandemic recovery in foot traffic but weaker conversion into high-value sales.