| Moodie Davitt Snapshots – Total market up +4.1% over August 2025 but well short of +11.7% rise in customer numbers – Downtown duty-free sector sees +22.8% surge in customer numbers but sales up just +3.4% – Foreigner customers rocket in downtown stores but sales increase is modest – Airport sales to foreigners grow strongly year-on-year but Korean spending decline – Department store sales to tourists growth slows amid strengthening Won and stock market correction |
SOUTH KOREA. Nationwide duty-free sales (excluding inflight) rose +4.1% year-on-year (-0.5% month-on-month) in August to KRW1,061,412,125,446 (US$795.2 million), according to Korea Duty Free Association.
However, revenues failed to keep pace with respective +11.7% year-on-year and +10% month-on-month increases in customer (not passenger) numbers to 2,933,446.
Sales to foreigners accounted for a dominant 74.6% of the revenue pie (on just 47.2% of the customer base) with revenues reaching KRW791,519,109,674 (US$593 million), up almost +8.0% over the same month last year but down -4% month-on-month.
However, that rise needs to be seen in the context of a +39% year-on-year surge (+6.4% month-on-month) in foreign customer numbers to 1,386,530, indicating softer spending by international visitors.
Chinese travellers accounted for around 30% of visitor numbers in the first half according to Korea Tourism Organization, ahead of Japanese at 18.2% and Taiwanese with 10.7%.
Sales to Koreans declined -5.8% year-on-year (+11.6% month-on-month) to KRW269,893,016,772 (US$202.2 million. Korean customer numbers also fell (-5.1%) year-on-year (+13.5% over July 2026) to 1,546,916.
Notably, department store sales growth has slowed from the first half, according to leading Korean business title, Chosun Biz. Department stores have been snaring market share from their duty-free equivalents for much of the year, buoyed by a strong Korean Won (department stores price in local currency unlike travel retailers which price in US Dollars) and surging visitor numbers.
However, the Won recently strengthened to a two-year high against the greenback at around 1,330 compared to circa-1,550 in July and the previously rampant stock market has seen a correction in the second half.
The report estimated Lotte Department Store’s third-quarter same-store sales growth rate at about +10% with Shinsegae Department Store’s at 15%–16%. 
All figures courtesy of Korea Duty Free Association, click to expand. Note: Pax/Passengers denotes actual customers
Downtown sales fail to keep pace with rising customer base
Total downtown duty-free sales rose +3.4% year-on-year (-2.9% month-on-month) to KRW761,627,363,935 (US$571.9 million). That increase fell well short, however, of the increase in customer numbers of customers, which surged +22.8% year-on-year (+7.7% over July 2026) to 1,184,529.
Foreigners generated 83.4% of downtown revenue on just 52.1% of the customer base. Sales to international visitors rose just +5.4% year-on-year (down -5.1% month-on-month) despite a whopping +52.8% surge in customer numbers over the same month last year (and +5.1% month-on-month gain) to 616,990.
The balance of sales, to Korean customers, reached KRW126,867,945,935 (US$95.3 million), down -5.7% year-on-year but up +9.6% over the previous month. Individual customer volume eased -1.2% over August 2025, implying increase average spend, and +10.6% month-on-month.
Ups and down in airport departures sales
Airport departures duty-free sales (see tables for arrivals sales) reached KRW251,140,781,873 (US$188.6 million), a +7.6% rise over August 2025 and ahead +3.5% month-on-month. Customer numbers rose two points higher at +9.6% over the same month last year to 1,311,795 (+7.9% compared to July 2026).
Foreigners accounted for 61.8% of sales on 57.2% of customer numbers, indicating a slighter average spend than Koreans. Sales to international visitors reached KRW155,091,706,798 (US$116.5 million), a sharp +19.7% increase over August 2025 and flat (+0.3%) month-on-month. Foreign customer volume soared +27.1% year-on-year and was up +7.1% over July 2026.
Conversely, sales to Korean travellers fell -7.6% year-on-year (+8.9% month-on-month) to KRW96,049,075,075 (US$72.1 million), roughly in line with a passenger base down -7.4% over the same month in 2025. Month-on-month, passenger numbers were up +8.7%.
What the Korea Duty Free Association calls ‘Designated’ sales (principally offshore duty-free sales to Korean domestic travellers in Jeju) declined -1.4% year-on-year but rose +25.2% (the Liberation Day/Gwangbokjeol effect) month-on-month to KRW37,785,784,250 (US$28.4 million). ✈
