Weak won equals strong sales? Local retailers hope exchange rate spurs tourists to spend.
Published: 23 Jan. 2026, 07:00
Audio report: written by reporters, read by AI
![Tourists shop while carrying the eco-friendly “Fortune Bag.” [SHINSEGAE DUTY FREE]](https://koreajoongangdaily.joins.com/data/photo/2026/01/23/1cb87bef-6b36-4c18-8831-dbd61d814433.jpg)
Tourists shop while carrying the eco-friendly “Fortune Bag.” [SHINSEGAE DUTY FREE]
With the won hovering near 1,500 to the dollar, foreign arrivals in Korea are expected to keep rising, and offer a lifeline to local retailers as domestic demand remains sluggish.
The number of foreign tourists visiting Korea totaled 17,418,270 from January to November of last year, up 15.4 percent from 15,098,766 during the same period a year earlier, according to the Korea Tourism Organization on Tuesday, already surpassing the 16.37 million foreign visitors recorded in all of 2024.
With December arrivals added, the total is expected to top the 2019 record of 17.5 million and set a new all-time high.
A surge in Chinese visitors, in particular, followed the launch of a visa-free entry program for Chinese nationals on Sept. 29 of last year. The number of Chinese tourists visiting Korea reached 472,477 in October 2025 and 377,866 in November, up 20.5 percent and 26.9 percent, respectively, from the same months a year earlier.
Industry sources and experts expect demand for trips to Korea to remain for the time being as the won stays weak.
“The weak yen once drove up demand for travel to Japan, and a weaker won could similarly push foreign visitors to choose Korea over other East Asian destinations,” said Yang Jun-sok, a professor of economics at the Catholic University of Korea.
In Seoul’s foreign exchange market on Tuesday, the won closed weaker by 4.4 won to the dollar at 1,478.1 in onshore daytime trading.
![A pop-up store themed on “Miniteen,” the intellectual property of K-pop boy band Seventeen, is held at The Hyundai Seoul, a major Hyundai Department Store branch in Yeongdeungpo District, western Seoul, in July 2025. [NOH YU-RIM]](https://koreajoongangdaily.joins.com/data/photo/2026/01/23/53e21855-3040-40b2-a228-47fe0eac6d4a.jpg)
A pop-up store themed on “Miniteen,” the intellectual property of K-pop boy band Seventeen, is held at The Hyundai Seoul, a major Hyundai Department Store branch in Yeongdeungpo District, western Seoul, in July 2025. [NOH YU-RIM]
Department stores are the segment with the highest expectations. The department store outlook in the Retail Business Survey Index for the first quarter of this year came in at 112, according to the Korea Chamber of Commerce and Industry. A reading above the benchmark of 100 indicates expectations that business conditions will improve.
That contrasts with other retail categories — including e-commerce, supermarkets, convenience stores and hypermarkets — all of which remained below 100.
After posting a rebound in the third quarter of 2025, department store operators are looking to expand fourth quarter gains by leaning on K-beauty and luxury sales.
Luxury sales to foreign customers in the second half of 2025 rose 33.1 percent from a year earlier, according to Hyundai Department Store. The share of foreign customers in sales at The Hyundai Seoul, the retailer’s flagship store in Yeongdeungpo District, western Seoul, jumped to around 20 percent in 2025 from 3.3 percent in 2022.
“Foreign customers with a strong interest in K-fashion brands and K-pop idols have been visiting in large numbers to experience pop-up stores,” a Hyundai Department Store spokesperson said. With more foreign visitors expected, the retailer has officially launched “Global Tour Support” at major stores this year, offering services such as free luggage storage and interpretation.
![Shoppers wait to enter Lotte Duty Free’s Myeongdong branch in Jung District, central Seoul, on Sept. 23, 2025. [YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2026/01/23/32068af4-471b-4741-bcb7-3556c1d25573.jpg)
Shoppers wait to enter Lotte Duty Free’s Myeongdong branch in Jung District, central Seoul, on Sept. 23, 2025. [YONHAP]
Lotte Department Store’s main store also saw sales to foreigners rise 40 percent in 2025 from the previous year. “Seventy percent of total sales last year at ‘Kinetic Ground,’ a K-fashion brand zone designed to target younger shoppers, came from foreign customers,” said a representative of Lotte Department Store.
Hypermarkets are also stepping up efforts to attract foreign shoppers. The number of foreign customers who visited Lotte Mart in 2025 rose 23 percent from a year earlier, while sales to foreign customers grew 30 percent over the same period. Emart reported foreign customer sales in 2025 increased 15 percent from 2024.
“Chinese visitors to Lotte Mart increased 14 percent month on month as of November last year, while Taiwanese visitors rose 10 percent,” a Lotte Mart source said. “A joint promotion with Line Pay will be held this month, and a campaign targeting Chinese shoppers ahead of the Lunar New Year holiday will follow next month.”
Duty-free shops have yet to show a clear recovery, but the industry is hoping the visa-free entry program for Chinese visitors will help drive traffic. At Lotte Duty Free’s Myeongdong flagship store, the number of Chinese group tourists who visited from October to December 2025 rose 50 percent from a year earlier, while sales increased 30 percent.
At Shinsegae Duty Free’s Myeongdong store, the number of Chinese individual travelers who made purchases rose 22 percent over the same period, while sales climbed 30 percent.
“A rise in Chinese tourists driven by China-Japan tensions that flared late last year could deliver spillover benefits to Korea’s duty-free sector,” an industry source 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 NOH YU-RIM [[email protected]]
with the Korea JoongAng Daily
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