Department stores set to post record foreign customer sales this year

South Korea's three leading department store chains are projected to achieve record high sales from foreign customers in 2025, propelled by the burgeoning appeal of Korean fashion and other facets of K-content. Lotte, Hyundai, and Shinsegae department stores have already surpassed their full-year sales figures from 2025, with foreign customers purchasing goods and services worth 730 billion won (US$520.9 million), 700 billion won, and 650 billion won respectively last year.

Lotte Department Store announced that its total sales to foreign customers have now exceeded 1 trillion won this year, a first for a South Korean department store. Foreign patrons bought not only international luxury brands but also Korean products associated with K-culture, such as fashion and cuisine. Hyundai Department Store anticipates reaching 1 trillion won in sales to foreign customers this year, having already amassed 805 billion won.

The company launched an AI-powered shopping assistant, HEYDI Global, in June 2024 and introduced a real-time AI translation service in June of the same year to assist with communication between store employees and customers. Shinsegae is also expected to hit the 1 trillion won mark in sales to foreign customers this year, with sales amounting to 850 billion won in the first nine months of the year.

Traditionally, local department stores relied heavily on Chinese shoppers, but a rising number of non-Chinese customers have become a significant source of demand for Korean products.