What: Lotte Department Store became the first Korean department store operator to pass ₩1 trillion ($744 million) in annual sales to foreign customers.

Why it is important: Foreign shoppers have moved from an opportunistic boost to a core customer group for Korean department stores. Lotte reached the milestone through tourist memberships, payment integration and Korean lifestyle offers built over the past year.

Lotte Department Store's foreign customer sales passed 1 trillion won ($744 million) on 6 October, after exceeding last year's total of 734.8 billion won in July. The company credits demand for luxury goods, Korean fashion, food and cultural experiences.

The Myeong-dong flagship generated about 520 billion won, helped by expanded Korean fashion offerings and themed events. Foreign sales at the Jamsil complex doubled year-on-year, with North American and European shoppers accounting for 35% of the total, up 15% from 2019. Growth extended beyond the capital: foreign sales rose 150% in Busan and doubled in the southwestern region, including Jeonju and Gwangju. By category, luxury sales to foreigners more than doubled, Korean fashion doubled and food hall and restaurant spending rose 50%.

Lotte's tourist membership programme has attracted 250,000 members since its launch late last year; online preregistration and self-service kiosks are planned, and shopping benefits will expand to stores in Daegu, Daejeon, Jeonju and Pohang.

The trend is industry-wide. Shinsegae reached 850 billion won in foreign sales in the first nine months, more than double the prior-year period, while Hyundai stood at 805 billion won as of 5 October; both expect to pass 1 trillion won this year.

IADS Notes: The ₩1 trillion milestone follows a year of steady acceleration. In October 2025, Lotte's foreign sales rose 40% during the golden holidays, led by Chinese visitors and by K-fashion halls that drew up to 80% of their sales from overseas shoppers, and the retailer announced plans for exclusive tourist memberships and lounges (ChosunBiz, October 2025). Weeks later, Lotte became the first in the industry to accept Line Pay Taiwan across all its stores, removing payment friction for a fast-growing group of visitors (The Chosun Daily, November 2025). Visitor spending was already shifting towards mid-priced, lifestyle-led and distinctly Korean purchases (Inside Retail, January 2026), while diplomatic tensions redirected Chinese tourists from Japan to Korea (ChosunBiz, March 2026). By May 2026, Lotte, Shinsegae and Hyundai were all reporting record foreign sales, supported by tourist memberships, culture-themed pop-ups and dedicated global marketing teams (The Asia Business Daily, May 2026).

Lotte becomes first Korean department store to pass ₩1 trillion in foreign customer sales