SOUTH KOREA. With its Chuseok holiday shopping campaign underway, Lotte Duty Free is promoting the strong price competitiveness of duty-free products such as liquor and perfume compared to domestic retail prices.
The travel retailer noted that duty-free shopping continues to deliver value, with exemptions on VAT, customs duties, liquor tax, education tax and other levies offsetting high exchange rates.
Price advantages are most evident in liquor, which can be more than -50% cheaper than the market price, while perfumes are generally offered at roughly half the price at downtown stores.
South Korean travellers can take advantage of the US$800 duty-free purchase allowance for personal purchases.
Duty-free liquor price advantage
Duty-free prices are markedly lower than downtown retail, where liquor is taxed at 68% for wine, 156% for whisky and 177% for Chinese liquor – with taxes accounting for about 57% of whisky’s price.
A whisky retailing for KRW1.3 million (US$932) downtown can be purchased at Lotte Duty Free for KRW400,000 (US$287) with discounts and membership benefits.
Recent regulatory changes have further enhanced the appeal of duty-free shopping. In March, the South Korean government lifted the previous two-bottle limit on duty-free alcohol, though the overall allowance remains capped at 2 litres or US$400 per person.
Lotte Duty Free has also revealed evolving consumer trends in the category, with men’s share of purchases dropping from 73% in 2019 to 64% in 2025 as female buyers grow. Product demand has expanded from blended whisky to malt whisky, sake and Chinese liquor.
Perfume sales surge
Another key duty-free category, fragrances benefit from exemptions on customs duties and other taxes, compared with downtown stores where taxes account for roughly 31% of the retail price.
Highlighting the price gap, the retailer noted that a branded perfume costing KRW240,000 (US$172) in department stores can be purchased at Lotte Duty Free for about KRW120,000 (US$86) with membership and discount benefits.
The 100ml per-person tax-free limit allows shoppers to buy two 50ml bottles or three 30ml bottles.
The company emphasised strong growth in the beauty segment, as sales of Korean cosmetics and perfumes increased from 14% in 2019 to 27% in 2025.
This growth has been driven by the marked price difference compared with domestic retail and last year’s duty-free perfume allowance increase from 60ml to 100ml.
A Lotte Duty Free spokesperson said: “In today’s high exchange rate environment, buying liquor and perfume at duty-free shops is economically advantageous. With various promotions and discount events, we are enhancing customer satisfaction.”
As reported, Lotte Duty Free rolled out a seasonal shopping campaign targeting Koreans preparing for their trips during the peak holiday period of Chuseok.
Throughout September, promotional discounts on fashion, jewellery and watches are available to shoppers at the World Tower in Seoul and Busan outlets every Friday to Sunday, with rewards of up to KRW1.9 million (US$1,363) in LDF Pay depending on purchase amount.
Shoppers at the retailer’s downtown duty-free stores can earn LDF Pay rewards of up to KRW1.51 million (US$1,084) on weekdays and up to KRW1.69 million (US$1,212) on weekends, depending on payment method and spending, valid until 31 October.
In addition, the LDF Golden Sale is currently running at Lotte Duty Free’s Myeongdong flagship and World Tower stores in Seoul, as well as at the Busan and Jeju outlets until 14 October, with discounts reaching up to -40% across multiple categories. ✈
