Foreign sales at department stores nearly double as tourism, K-content popularity fuel spending
Shinsegae has recorded its strongest-ever first-quarter earnings on the back of strong sales and balanced growth across all of its businesses, the Korean retail giant said Tuesday.
According to Shinsegae, it posted 3.21 trillion won ($2.16 billion) in sales and 197.8 billion won in operating profit in the January to March period this year, up 11.7 percent and 49.5 percent, respectively, year over year.
Shinsegae’s department store business posted record earnings, too: 2.03 trillion won in sales and 141 billion won in operating profit, up a respective 13 percent and 30.7 percent from the first quarter of last year. The company credited steady investments, improved brand portfolio and pop-up stores behind the successful performance of its department stores across the country.
Driven by increased interest in Korean content, Shinsegae said purchases made by foreign national customers at its department stores almost doubled from the first quarter of 2025. In particular, the main department store in Seoul’s tourist-filled district Myeong-dong saw sales to overseas customers skyrocket by 140 percent on-year during the quarter.
Shinsegae International reported some of the strongest growth among the group’s subsidiaries, logging 14.8 billion in operating profit, which soared 452.6 percent on-year, as imported fashion and cosmetics sales rebounded sharply.
Shinsegae’s duty-free business is also back in the black, posting 10.6 billion won in operating profit achieved by expanding partnerships with global firms, improving discount rates for large sales, and introducing popular Korean content.
Meanwhile, Shinsegae’s board approved the retailer’s first-ever quarterly dividend on the same day, deciding to give out 1,300 won per common share.
“Despite difficult external factors, proactive efforts to improve business structures and strategic investments enabled significant growth in both revenue and profitability,” a Shinsegae official said.
“Through stronger shareholder return policies, we will continue to invest and improve businesses to better the value of our shareholders and the company.”
hwkan@heraldcorp.com
