Foreign tourists spend over 1 trillion won in Busan as regional retail competition intensifies
Foreign tourists spent more than 1 trillion won ($745 million) in Busan between January and September, marking the first time any region outside Seoul has crossed that financial threshold, The Korea Herald reported. South Korean retailers are shifting focus away from the capital as regional airports record a 37 percent surge in arrivals to roughly 3.24 million in the first nine months of the year, outpacing the 17.3 percent increase seen at capital-area airports, according to data from the Korea Airports Corp.
Shinsegae acquires Lotte branch to build Shinsegae Town in Centum City
In Busan’s coastal Haeundae district, local retail giants Shinsegae and Lotte are reshaping their commercial rivalry. Shinsegae announced the acquisition of Lotte Department Store’s Centum City branch, which sits adjacent to Shinsegae Centum City—a top-selling department store outside the capital region boasting over 2 trillion won in annual sales. Lotte’s nearby branch experienced a sales decline from a peak exceeding 300 billion won down to roughly 130 billion won by 2023. Shinsegae plans to connect the acquired building with its existing mall and an undeveloped plot slated for a luxury hotel, offices, and residences to create a sprawling complex called Shinsegae Town. “This deal creates an environment in which both companies can grow further,” Shinsegae CEO Park Joo-hyung said, adding that the company will develop the area into a global landmark representing South Korea.
Lotte restructures four remaining regional branches
While Shinsegae concentrates its investments in Haeundae, Lotte Department Store is distributing its resources across its four remaining branches in the city. The retailer will use the proceeds from the Centum City sale to renovate its Busan flagship in Seomyeon and invest in Lotte Mall Dongbusan, both of which have recorded rising sales figures. Lotte’s Seomyeon flagship generated 1.2 trillion won in sales last year and has drawn increased patronage from foreign diners, whose food and beverage spending climbed 120 percent year-on-year from January through October. Meanwhile, Lotte’s Gwangbok branch in the old downtown focuses on incoming foreign tourists, and its Dongnae store caters primarily to local residents.
Beauty and fashion brands expand physical footprints in regional markets
Beyond traditional department stores, beauty and fashion labels are scaling up their regional retail presence. CJ Olive Young is investing 123.8 billion won, including a fish market-themed shop in Busan’s Millac-dong and an expanded outlet in Nampo-dong. Combined sales across Musinsa’s eight non-capital stores rose by about 44 percent over the same period, supported by newer locations such as a Changwon store opened in October and a Daegu Standard store established in 2023.
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