South Korea’s surging global cultural influence is translating into record-breaking retail performance, as rising numbers of foreign tourists drawn by K-pop, K-dramas and Korean beauty trends fueled the strongest first-quarter earnings ever reported by the country’s leading department-store chains.
The results highlight how South Korea’s expanding soft power is increasingly reshaping not only tourism but also the nation’s broader consumer economy, transforming major retail operators into direct beneficiaries of the global Korean Wave.
South Korea’s three largest department-store groups—Lotte, Shinsegae and Hyundai—reported sharp gains in revenue and profit for the first quarter, supported by a powerful combination of inbound tourism recovery, resilient luxury demand and improving consumer sentiment.
Lotte Department Store posted operating profit of approximately $138 million, up 47.1% from a year earlier, while revenue rose 8.2% to roughly $630 million.
Shinsegae’s department-store division reported operating profit of about $102 million, marking a 30.7% year-over-year increase, with revenue climbing 12.4% to around $535 million.
Hyundai Department Store delivered its highest quarterly sales on record, with department-store revenue rising 7.4% to approximately $457 million and operating profit surging 39.7% to about $98 million.
The strong earnings underscore how South Korea’s retail sector is rapidly evolving into a luxury-shopping destination for global travelers as tourism rebounds sharply.
According to South Korea’s Ministry of Culture, Sports and Tourism, the country welcomed approximately 4.76 million foreign visitors between January and March, a 23% increase from a year earlier and the highest first-quarter figure ever recorded.
Retailers said favorable currency conditions, combined with sustained international enthusiasm for Korean culture, significantly boosted spending by overseas visitors on shopping, dining and premium consumer experiences.
Lotte said sales to foreign customers jumped 92% during the quarter, with overseas shoppers accounting for 23% of total sales at its flagship Seoul store—more than double the proportion from a year earlier.
Shinsegae reported foreign-customer sales growth of 141%, while total foreign sales across its department-store network nearly doubled.
Hyundai Department Store said foreign sales at The Hyundai Seoul, one of the country’s top retail destinations for international tourists, rose 121%.
Luxury consumption remained a major driver of growth across the sector.
First-quarter luxury sales increased 30% at Lotte, 28% at Shinsegae and 30% at Hyundai. Hyundai added that sales of high-end jewelry brands such as Chaumet and Rolex surged more than 50%.
Analysts said the sector is benefiting from both tourism recovery and a broader wealth effect as rising stock markets and stronger household asset values encourage affluent consumers to spend more aggressively on premium goods.
The trend was particularly visible at flagship locations such as Shinsegae’s Gangnam store, where total sales rose 55% from a year earlier.
Brokerages expect momentum to continue into the second quarter as domestic consumption remains stable and global travel demand continues to recover.
Industry analysts increasingly view South Korea’s department-store sector as a key example of how the country’s cultural exports are creating downstream economic value far beyond entertainment.
As global consumers travel to South Korea not only for cultural experiences but also for luxury shopping, beauty products and curated retail experiences, the nation is strengthening its position as one of Asia’s emerging premium retail hubs.
For South Korea, the performance signals that K-culture’s influence is evolving from a soft-power asset into a meaningful commercial growth engine—one capable of reshaping tourism, retail and luxury consumption on a global scale.
