Tourists visiting South Korea are increasingly opting for value-driven shopping experiences that align with their personal preferences, marking a departure from the previously popular high-end, large-scale purchases. This shift in consumer behaviour has been highlighted in recent data from the Korea Tourism Organization (KTO).
Shift in Shopping Patterns
A comprehensive analysis of foreign credit card transactions from 2018 to September 2024 reveals that shopping remains the primary expenditure for tourists, accounting for 51 percent of total spending. Notably, the nature of these purchases has transitioned over time. The average amount spent per transaction has dropped from 150,000 won in 2019 to 120,000 won in the current year, despite an overall increase in per-person spending by 83 percent. This surge can be attributed to a significant 124 percent rise in the number of purchases, indicating tourists are buying a larger quantity of items at lower prices.
According to KTO, this change signifies a growing predilection for moderately priced goods and lifestyle products that embody a unique Korean aesthetic. For instance, sales at ‘gacha’ toy capsule shops have seen a remarkable 142 percent rise in the first nine months of the current year compared to the same period in the previous year. Similarly, transactions at stationery stores and bookstores have increased by 48.7 percent and 39.9 percent, respectively. The iconic stationery brand Artbox has seen substantial growth across transportation hubs and regional commercial districts.
Rise in Fashion and Beauty Purchases
The fashion sector has also benefited from this trend, recording an increase of 23.4 percent from the previous year. This is largely driven by significant growth in the purchases of underwear, sportswear, and accessories.
Korean beauty and wellness-related products continue to be strong contenders in the market. Spending in these categories has seen a steady annual growth rate of 19.1 percent from 2018 to 2023, and further expanded by 40.4 percent this year. Retailer Olive Young has experienced phenomenal growth in emerging commercial areas such as Seongsu and around Gyeongbokgung. Pharmacy sales have also seen a boost due to the rising trend of everyday wellness, while the demand for traditional health foods like red ginseng and ginseng continues to ascend.
Influence of Korean Culture
Lee Mi-suk, head of KTO’s tourism data strategy team, commented on this evolving consumer behavior. She stated, “The move toward practical, lifestyle-driven consumption shows how Korean culture and K-content are increasingly shaping global tastes.”
Questions & Answers
What is the primary expenditure for tourists in South Korea?
The primary expenditure for tourists in South Korea is shopping, accounting for 51 percent of total spending.
How has the nature of tourist purchases in South Korea changed over time?
The average amount spent per transaction has decreased, but the total per-person spending has increased. This suggests that tourists are buying a larger quantity of items at lower prices.
What are some of the key sectors benefiting from the shift in tourist spending in South Korea?
Mid-priced goods and lifestyle products have experienced a significant increase in sales. Additionally, the fashion sector, K-beauty, and wellness-related product sectors have also seen a rise in purchases.
