Korean duty-free store operators struggle despite surge in inbound travelers

South Korean duty-free store operators are struggling with sluggish sales despite a sharp surge in the number of foreign tourists visiting the country.

According to the Korea Duty Free Shops Association on Monday, domestic duty-free sales totaled 997.1 billion won ($689 million) in November, down 1.7 percent from the same period a year ago.

Cumulative sales from January to November amounted to 11.4 trillion won, down 12 percent from the same period a year earlier.

Compared with full-year sales in 2024 of 14.2 trillion won, last year’s performance is expected to fall well short of the previous year’s level.

When compared with the peak of 2019, when duty-free sales reached about 24.8 trillion won, the outlook suggests sales will effectively be cut in half.

The weak performance contrasts sharply with the broader tourism recovery.

According to the Ministry of Culture, Sports and Tourism, the number of foreign tourists visiting Korea from January 1 to December 23, 2025, surpassed 18.5 million, setting a new all-time record.

Despite the increase in inbound tourists, duty-free store performance has remained weak largely due to changes in shopping behaviors, observers noted.

They noted a clear trend of visitors choosing city-based retailers such as Olive Young, Daiso, and convenience stores rather than making purchases at duty-free shops.