What: Department stores are increasing efforts to appeal to foreign tourists because local consumers are more budget-conscious amid rising debt and interest rates.

Why it is important: Sales are being driven by tourists in South Korea thanks to the growing popularity of K-beauty, K-fashion, and K-pop.

Lotte Department Store is improving its K-fashion to attract foreigners by opening more Korean brand stores such as Ader Error and Mardi Mercredi at its Jamil branch and Martin Kim at its Myeong-dong branch.

Shinsegae also noticed sales from foreigners increase by 460% between January and July in their Sogong-dong branch and 465% at its Busan branch.

The Hyundai Seoul store has also become a popular stop for tourists and the proportion of sales to foreign customers has reached 16% and 12% at the Gangnam and Yeouido branches respectively.

Department stores go all out to attract tourists