What: The Korean government is lifting quarantine restrictions for tourists leading to sales recovery for department stores and retail centres.

Why it is important: Since the lift of COVID travel restrictions on tourists visiting Korea, the number of visitors jumped from 80,000 to 260,000 at the start of 2022, to now 400,000 just in September.

While the pandemic caused a 70% drop in tourist shopping, the Hyundai Department Store has seen a 198% year-over-year increase between July and August. In the second half, the department store saw a 129% increase year-over-year for tourist shopping.

To capitalize on the increased traffic, Hyundai is collaborating with local entertainment firm HYBE to host a K-pop event at its Yeouido brand. Lotte Department Store is also taking steps at its main store in Myeong-dong to prepare for the increasing number of international shoppers.

Reports from retailers have shown that foreigners mainly purchased cosmetics and fashion items. Theirs in each category increased 218% and 233%, respectively, in July.

Korean department stores recover as tourism returns