Foreign customers shop at the main branch of Shinsegae Department Store. [Shinsegae Department Store]
Foreign customers shop at the main branch of Shinsegae Department Store. [Shinsegae Department Store]

Shinsegae Department Store said Monday that sales to foreign customers reached 580 billion won ($386 million) in the first half of this year, a 120 percent increase from the same period last year.

The figure marks an all-time high for first-half foreign sales. Last year's full-year foreign sales totaled about 650 billion won, meaning the store has already hit 90 percent of that annual result in just the first six months. If the current pace holds, Shinsegae expects to surpass 1 trillion won in annual foreign sales for the first time.

The nationalities of foreign shoppers have also grown more diverse. Chinese customers accounted for 77.5 percent of foreign sales in 2019 but made up just 48.5 percent in the first half of this year. Over the same period, the share of American customers rose from 1.1 percent to 19.1 percent, while shoppers from Southeast Asia and other Asian countries climbed from 4.4 percent to 14.9 percent.

Spending categories have broadened as well. Luxury goods sales to foreign customers jumped 129.3 percent year-on-year, while menswear rose 110.0 percent, womenswear 89.4 percent, cosmetics 87.3 percent and food and beverage 62.9 percent. Growing interest in Korean lifestyle — spanning K-fashion, K-beauty and dining — has diversified shopping demand. Membership in the store's foreigner-exclusive program has surpassed 300,000 people from more than 120 countries.

By location, the main branch in Myeong-dong continues to draw foreign visitors through its position in one of Seoul's busiest tourist districts. The branch's giant outdoor media facade, Shinsegae Square, has featured K-pop content from acts including BTS and Boy Next Door. The Gangnam branch benefits from its proximity to Banpo Han River Park, Sevit Island and the JW Marriott Hotel, drawing customers from more than 120 countries.

The Centum City branch in Busan posted the strongest growth among major stores, with first-half foreign sales surging 230 percent year-on-year, driven by an increase in cruise ship arrivals at Busan Port and rising tourism demand.

In the second half, Shinsegae plans to partner with the Korea Tourism Organization, the Seoul Tourism Foundation and the Korea Visit Year Committee to attract more international visitors. The company will step up tourism marketing targeting the Americas, Europe and Taiwan — including participation in ITF, Taiwan's largest travel fair — and expand promotions aimed at customers from China, Southeast Asia, Japan and Taiwan. It also plans to deepen ties with global payment platforms including UnionPay, Alipay, Line Pay and JCB.

Park Ju-hyung, president and CEO of Shinsegae Co., said the department store "has grown into a global tourism destination where visitors can experience K-shopping, dining and content all in one place," adding that the company will "maintain its status as a K-shopping landmark through the differentiated strengths of stores such as the Gangnam branch, the Myeong-dong main branch and the Centum City branch in Busan, along with overwhelming brand differentiation."

Shinsegae Square at the main branch of Shinsegae Department Store in Jung-gu, Seoul. [Shinsegae Department Store]
Shinsegae Square at the main branch of Shinsegae Department Store in Jung-gu, Seoul. [Shinsegae Department Store]

spa@heraldcorp.com