Recent shifts in the tourism landscape for foreign visitors to South Korea signal a notable transformation in travel preferences. Before the COVID-19 pandemic, package tours that focused on major tourist attractions and department stores dominated the market. However, with the transition to endemic status, there has been a significant increase in family-oriented, small-scale individual travel experiences, often classified as Free Independent Travel (FIT). The global proliferation of K-culture, encompassing K-pop, films, and dramas, has reshaped perceptions of everyday life in South Korea, leading to heightened interest in experiencing Korean cuisine, beauty products, fashion, healthcare, and unique services firsthand. Foreign tourists have become a vital source of revenue for a domestic market facing challenges due to declining population numbers.
As of early February 2026, the influx of foreign tourists is nearing 20 million annually, revitalizing the local economy. For instance, popular shopping destinations in Seoul’s Seongsu-dong, such as Olive Young, Daiso, and Musinsa, have witnessed unprecedented crowds of international visitors. On February 11, the Musinsa Standard store was particularly busy, with tourists queuing for over 30 minutes to check out. An American tourist, Ethan Miller, shared his experience, expressing surprise at the affordability of Korean brands showcased prominently on social media, remarking that trying on locally exclusive brands is more enjoyable than simply purchasing luxury items.
Changing Consumption Patterns
The consumption habits of foreign tourists have evolved significantly. Previously, duty-free shops were the travel-to for shopping, but now there is a marked shift towards local retail channels that emphasize K-beauty, K-fashion, and cost-effective lifestyle products. According to the Korea Tourism Organization, road shops have become the preferred shopping venues for 49.6% of foreign visitors. Seongsu-dong, in particular, has seen a staggering 236.8% increase in foreign visitors compared to the previous year, making it the top area for growth in Seoul.
Retailer Performance Insights
This trend is reflected in the sales figures of major retailers. For instance, Olive Young reported a 53% increase in foreign sales last year, and in January 2026, sales surged by 59% compared to the previous year. The Olive Young N Seongsu location saw a remarkable 74% increase in foreign sales in January, driven by a growing demand for experiential engagement with K-beauty trends.
Daiso has also targeted foreign clientele with large stores in popular districts such as Myeongdong and Hongdae. Data shows that card usage by foreign customers in these areas increased by 60% last year and about 80% in January 2026. Japanese tourist Aya noted the appeal of Daiso’s affordable, cute products, enhancing the shopping experience.
Musinsa also reported an 85% increase in foreign sales across its offline stores last year. The flagship stores in Seongsu and Myeongdong saw increases of 113% and 90%, respectively. Notably, about 50% of sales at the Seongsu Musinsa store in January came from foreign customers, supported by services tailored to tourists, such as currency exchange machines and tax refund options.
Experiential Shopping at Mediheal
A notable hotspot is the Mediheal store in Seongsu, which has become increasingly popular among foreign visitors, with a reported 60% of its clientele being international. Although it only opened in December, the store has been averaging around 500 visitors daily, thanks to positive word-of-mouth. Tourists from Taiwan and Japan highlighted their motivation for visiting based on online recommendations and the popularity of specific products.
Impact on Traditional Duty-Free Shops
This shift in consumer behavior has implications beyond just purchasing patterns; it reflects a broader change in how tourists allocate their time. Foreign visitors are spending less time at traditional duty-free shops, opting instead to explore local shopping districts like Seongsu and Myeongdong. This shift means that high-value purchases of luxury cosmetics at duty-free outlets are being replaced by smaller, more varied purchases of mid-range K-beauty and lifestyle products.
the weakening of the Korean won has prompted some tourists to choose department stores over duty-free shops, as the price advantages of the latter diminish. This shift is contributing to financial pressures within the duty-free sector, leading major players like Lotte, Shilla, and Shinsegae to implement workforce reductions and close stores. The Korea Duty-Free Shop Association reported that sales at duty-free shops dropped by 11.9% last year, marking the lowest level since before the THAAD crisis in 2016.
A Structural Shift in Tourism Strategy
In response to these trends, duty-free retailers are ramping up marketing efforts to retain existing customers rather than attract new ones. Despite an increase in foreign tourist numbers, there are concerns that this will not necessarily translate into a rebound for duty-free sales, indicating a structural shift in the market.
Industry experts suggest that the competitive landscape is evolving from a focus on price differences to a greater emphasis on the quality of the tourist experience. Retailers need to adapt by enhancing experiential offerings and curating K-brands effectively. The changing dynamics urge a transition from quantitative growth strategies focused on increasing visitor numbers to qualitative approaches that enhance visitor engagement, spending, and return rates.
As the tourism sector continues to evolve, stakeholders must prioritize the integration of content, commerce, transportation, and payment infrastructures to create a seamless experience for visitors. The focus should be on enhancing the depth of the tourist experience in South Korea, ensuring that visitors abandon with lasting impressions and a willingness to return.
As the landscape of Korean tourism continues to shift, industry players and policymakers will need to remain agile in adapting strategies to meet the changing preferences of foreign visitors. Comments and discussions about these developments are encouraged as stakeholders seek to navigate this new era of K-tourism.
