What: Lotte, Shinsegae, and Hyundai have seen a surge in foreign sales and operating profits, as targeted strategies and experiential retail attract international visitors amid Korea’s rising global cultural influence.

Why it is important: This trend demonstrates how Korean department stores are leveraging cultural assets, innovation, and tailored experiences to capture international demand and drive sector-leading growth.

Korea’s leading department stores—Lotte, Shinsegae, and Hyundai—are experiencing robust growth in 2026, with foreign sales and operating profits reaching record highs. The global popularity of K-content, including K-pop and Korean dramas, has fueled a dramatic rise in international tourism, with foreign sales at flagship stores more than doubling year-on-year. To capitalize on this momentum, retailers have launched targeted strategies such as exclusive tourist memberships, pop-up events themed around popular cultural icons, and dedicated global marketing teams. These initiatives have not only increased the share of foreign sales but also enhanced the overall shopping experience, blending retail with entertainment and cultural engagement. The sector’s success underscores the importance of innovation, localization, and destination retail strategies in a competitive market, as department stores differentiate themselves through immersive environments and high-value offerings tailored to international visitors.

IADS Notes: Recent IADS sources confirm that Korean department stores are experiencing record-breaking performance in early 2026, propelled by a surge in foreign tourist spending and the global appeal of K-content. Maeil Business Newspaper in May 2026 highlights unprecedented Q1 results for Lotte, Hyundai, and Shinsegae, with foreign sales up to 92% for Lotte and 121% for Hyundai’s flagship, and department stores outperforming other retail formats. ChosunBiz in March 2026 documents the shift in Chinese tourist spending from Japan to Korea, with Korean retailers implementing targeted promotions and experiential offerings to capture international demand. The Korea Times in September 2025 details how major department stores are elevating VIP strategies and personalized experiences to secure luxury demand and maintain growth. The Chosun Daily in February 2026 describes the transformation of store layouts into immersive, lifestyle-driven environments, while ChosunBiz in October 2025 reports a 40% boost in foreign sales at Lotte during the golden holidays, driven by K-fashion and targeted campaigns. Korea JoongAng Daily in October 2025 explains the expansion of cultural centers and academy-style spaces to increase engagement and loyalty, and Inside Retail in January 2026 reveals a shift in tourist spending toward value-for-money and lifestyle-driven purchases. Collectively, these sources illustrate how Korean department stores are leveraging innovation, experiential retail, and destination strategies to capture both domestic and international demand, positioning themselves for sustained growth in a dynamic market environment.

Tourism and international entertainment lift Korean department stores sales