Korea's tourism numbers spike as visitors flock to lifestyle stores and museums

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Korea's tourism numbers spike as visitors flock to lifestyle stores and museums

Visitors shop at an Olive Young store in Seoul in an undated photo provided by the company. [CJ OLIVE YOUNG]

Visitors shop at an Olive Young store in Seoul in an undated photo provided by the company. [CJ OLIVE YOUNG]

 
The Asia-Pacific Economic Cooperation (APEC) summit held in Gyeongju, North Gyeongsang late last month drew attention not only for its diplomatic significance but also for a series of shout-outs to Korean tourism favorites from high-profile dignitaries.
 
On Oct. 29, Karoline Leavitt, the White House press secretary, stopped by the Hwangnam branch of Olive Young in Gyeongju, later posting a photo on Instagram showing 13 Korean skincare products she purchased, captioned as “South Korea skincare finds.” 
 
The following day in Seoul, Jensen Huang, the CEO of Nvidia, visited the Kkanbu Chicken branch in Samseong-dong, southern Seoul, for a power dinner with Samsung Electronics Executive Chairman Lee Jae-yong and Hyundai Motor Group Executive Chair Euisun Chung. 
 
After munching on fried chicken, he repeatedly told reporters the wings were “so good,” a viral moment which triggered a surge in nationwide orders at Kkanbu. 
 
Nvidia CEO Jensen Huang, right, Samsung Electronics Executive Chairman Lee Jae-yong, far left, and Hyundai Motor Group Executive Chair Euisun Chung hold up glasses at a meeting at a Kkanbu Chicken store in Gangnam District, southern Seoul, on Oct. 30. [NEWS1]

Nvidia CEO Jensen Huang, right, Samsung Electronics Executive Chairman Lee Jae-yong, far left, and Hyundai Motor Group Executive Chair Euisun Chung hold up glasses at a meeting at a Kkanbu Chicken store in Gangnam District, southern Seoul, on Oct. 30. [NEWS1]

 
48 percent surge in visitors on year
 
The K-beauty store and fried-chicken chain these high-profile travelers visited have now become must-see destinations for many foreign tourists. 
 
A CJ Olive Young representative said that last year, 9.42 million foreign customers from 189 countries shopped at Olive Young stores across Korea, noting that foreigners accounted for 26.4 percent of total sales in the first half of this year.
 
Yu Jung-hyun, an analyst at Daishin Securities, observed that foreign shoppers are “increasingly shifting from downtown duty-free shops to specialty retailers like Olive Young.”
 
Kyochon Pilbang, a concept store opened in 2023 in Itaewon, central Seoul, by Kyochon F&B, the operator of Kyochon Chicken, said that more than 80 percent of its visitors last year were foreigners.
 
“The store’s interior, which incorporates elements of East Asian aesthetics, has resonated strongly with international customers,” a representative at Kyochon F&B said.
 
Other destinations have also surged in popularity. Foreigners now account for roughly half of sales at Daiso stores in core tourism hubs such as Myeong-dong and Dongdaemun in central Seoul, drawn by low prices. 
 
People visit the National Museum of Korea in Yongsan District, central Seoul, on Oct. 9. [NEWS1]

People visit the National Museum of Korea in Yongsan District, central Seoul, on Oct. 9. [NEWS1]

 
The National Museum of Korea welcomed 190,052 foreign visitors from January through Oct. 20, with numbers expected to rise further due to the global success of Netflix’s hit animated film “KPop Demon Hunters.” 
 
Rising attractions also include the stationery store Artbox and shopping mall The Hyundai Seoul in Yeouido, western Seoul.
 
Foreign shopping sales at The Hyundai Seoul climbed to 15.2 percent in September this year from 3.3 percent in 2022.
 
These newer hot spots are quickly gaining popularity on par with traditional attractions like N Seoul Tower and Gyeongbok Palace. 
 
Analysts attribute the rise to frequent exposure in Korean dramas and other Korean content, which have transformed these sites into must-visit destinations, as well as a steady stream of social media posts on YouTube, TikTok and Instagram.
 
Visitors browse a Daiso store in downtown Seoul on April 15. [YONHAP]

Visitors browse a Daiso store in downtown Seoul on April 15. [YONHAP]

 
On Reddit last month, one user wrote, “Daiso in Korea is not just a store. It’s a full-blown lifestyle,” recounting purchases from plates and detergent to dog treats and electronics at bargain prices. More than 800 users upvoted the post.
 
Amid the popularity of these emerging destinations, the number of foreign tourists visiting Korea has skyrocketed, going from 11.03 million in 2023 to 16.37 million last year, up 48.4 percent. China led with 4.6 million visitors, followed by Japan (3.22 million), Taiwan (1.47 million) and the U.S. (1.32 million).
 
Nam Sung-hyun, an analyst at IBK Investment & Securities, projected that inbound foreign visitors will “grow at an annual average rate of 7.1 percent since last year, reaching 23 million by 2029,” driven in part by the global success of Korean content. Government initiatives promoting medical tourism and the MICE (meetings, incentives, conferences and exhibitions) sector are also fueling optimism.
 
Korea still lags OECD in tourism GDP share
 
Despite all the good news, though, several challenges remain.
 
One key emerging issue is the shortage of domestic workers in the tourism sector in spite of rising demand. A survey by the Ministry of Culture, Sports and Tourism last year found that eight out of 10 tourism-related businesses reported staffing shortages.
 
Lee Hoon, a tourism professor at Hanyang University, noted that student enrollment in tourism and hotel programs at universities has declined by more than 10,000 students over the past three years, citing “low wages and limited benefits” as factors discouraging new talent.
 
According to the Korea Educational Development Institute, applicants to tourism-related programs dropped steeply from 44,912 in 2019 to 23,243 last year, and total enrolled students fell from 20,015 to 17,967 over the same period.
 
A tourist wearing hanbok (traditional Korean clothes) walks down Hwangnidan Road in Gyeongju, North Gyeongsang, on Oct. 31. [NEWS1]

A tourist wearing hanbok (traditional Korean clothes) walks down Hwangnidan Road in Gyeongju, North Gyeongsang, on Oct. 31. [NEWS1]

 
Kwon Bong-heon, a tourism professor at Baekseok University, added that the government should “ease restrictions to allow more foreign workers into the sector to alleviate labor shortages.”
 
At the same time, disparities in tourism infrastructure and visitor numbers between Seoul and regional cities persist. 
 
As of May this year, only 7.8 percent of foreign tourists ventured beyond Seoul, Gyeonggi and Incheon. Among such travelers, most of them traveled to well-developed destinations such as Jeju and Busan. Although the government launched 11 region-specific tourism packages last year to address these imbalances, their impact has been limited.
 
“Korea needs more diverse region-specific content, stronger product development and expanded infrastructure, including additional direct international flights,” said Shin Hak-seung, a tourism professor at Hanyang University.
 
A representative in the tourism industry noted that in 2023, tourism accounted for roughly 3 percent of Korea’s GDP — low among OECD nations and well below the global average of around 9 percent.
 
“Given that tourism generates foreign revenue and creates domestic jobs, the government must seize this golden moment for Korean tourism with sustained attention and comprehensive support measures,” the representative said.


This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY LEE CHANG-KYUN [[email protected]]
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