Local duty-free shops in South Korea, particularly in Busan, are grappling with severe difficulties due to high exchange rates, an economic downturn, and shifting tourist shopping preferences.
Shinsegae Duty Free Busan, located in Shinsegae Centum City Mall, has reduced operating hours, cut its sales area by 25%, and stopped weekend operations following voluntary retirements. Talks of store closures persist as sales remain sluggish, though no final decision has been made.
Similarly, Lotte Duty Free has implemented cost-cutting measures, including voluntary retirements and potential store area reductions.
Changing tourist behaviors favoring road shops like Olive Young and Daiso, coupled with reduced spending by foreign visitors, have highlighted the industry’s struggles.
Busan’s duty-free sector has been hit harder than Seoul, with significantly lower customer numbers and sales.
The industry hopes that government plans to attract more Chinese tourists, including possible visa-free group travel, will offer some relief in 2025.
