Busan's department stores cash in on record foreign visitor numbers

Foreign tourists are pouring into South Korea’s second-largest city in record numbers, and the city’s department stores are cashing in, with some branches posting sales growth that outpaces Seoul’s retailers.

Busan welcomed nearly 1.94 million foreign visitors between January and May, a 40 percent jump from a year earlier and nearly double the national growth rate, according to city data on Friday. Foreign visitor spending hit 132.2 billion won ($89 million) in May alone, second only to Seoul nationwide.

Department stores are seeing the clearest impact. Foreign sales at Shinsegae’s Centum City branch rose 230 percent in the first half of the year, while Lotte’s Busan flagship grew 150 percent. Both outpaced growth at major department stores in Seoul.

Foreign shoppers are also claiming a larger share of overall sales. At Lotte’s Busan flagship and Dongbusan branch, foreign sales climbed from just 3 percent of total revenue in 2024 to around 10 percent in the first half of this year.

Busan’s tourism surge has also been fueled in part by two major draws: BTS’ concert last month and the city’s hosting of the 48th session of the UNESCO World Heritage Committee, which runs from Monday to July 29.

To build on that growth, Shinsegae is running a Korean heritage event at its Busan branch.

“As a landmark of K-shopping, we will spotlight craft, hanbok, K-goods and regional cultural content alike,” a Shinsegae Department Store official said.

Yet, for the department store sector, Busan is just one chapter in a much bigger story.

The rise in foreign spending mirrors a larger trend across Korea’s retail industry, with the country’s three major department store operators posting record foreign sales in the first half and on pace to top 1 trillion won for the year.

Lotte Department Store posted 640 billion won in foreign sales in the first half of the year, already 87 percent of its total for 2025, while Shinsegae posted a record 580 billion won, up 120 percent on-year. Hyundai Department Store brought in 500 billion won over the same period, already about 70 percent of what it made in 2025.

Industry officials point to a confluence of factors behind the surge, such as a weaker won, new experiential spaces built around Korean culture, upgraded payment systems and artificial intelligence-powered services.

“Department stores are becoming tourist destinations in their own right, not just shopping spaces for luxury goods but for K-fashion, beauty and food as well,” an industry official said.