[Young journalist Choi Jion] Facing sluggish domestic demand due to a shrinking population, the retail sector is gradually turning its focus overseas. However, some companies are actively targeting foreign tourists visiting Korea. This is because many of them come to Korea to experience K-beauty and K-food. With the number of foreign tourists rising significantly after COVID-19, retailers are strengthening their strategies to meet their demand. 

Tourists fall for K-Beauty… Flood Road Shops
According to the Korea Tourism Organization, 16.37 million international tourists visited Korea last year. That’s an eightfold increase from 2020, when only 2.52 million came due to the impact of COVID-19. In comparison to last year, the number rose by 48.4%. In fact, it has recovered to the pre-pandemic level of 2019, which was 17.5 million. 

As the number of foreign tourists to Korea rises, retailers are stepping up their efforts. While domestic demand continues to decline, these visitors are importantly seen as a new customer base.

Especially many foreign tourists become interested in K-beauty and K-food after being exposed to Korean culture through K-dramas, K-pop, and other contents. As a result, they often seek typical beauty-related shopping and gourmet travel experiences during their stay. 

According to the ‘2024 Q4 Interim Report on Foreign Tourist Survey (multiple responses allowed) presented by Korea Tourist Data Lab, cosmetics were the most purchased items among foreign visitors to Korea at 69.8%. 

Among major shopping locations, road shops—where cosmetics stores make up a large proportion—ranked first at 48.0%, followed by department stores (41.4%) and large shopping malls (41.4%). This indicates that many foreign tourists in Korea are primarily shopping for beauty-related products. 

Among domestic road shops, the clear favorite of foreign tourists is CJ Olive Young. Thanks to the word of mouth, Olive Young has gained a reputation as a K-beauty hub and has become a must-visit place for tourists in Korea. Just as visitors to Japan often look for Don Quijote for discounted goods, Olive young has become an essential course especially for female tourists visiting Korea. 

According to Oliveyoung, tourists from 189 countries visited its stores last year. During the same period, they visited 1,264 Olive Young locations, about 92% of all branches in the nation (based on Q4 2024 figure). In addition, the payment transactions reached 9.42 million. 

Thus, in response to the steady visit of foreign customers, Oliveyoung designated certain stores with high foreign customer traffic as ‘Global Tourist Commercial District’ for the special management. These stores introduced an electronic label that displays product names in English, along with the introduction of the store and the promotional information translated into English. 

Isolating display zones such as “K-Beauty Now” and “Global Hot issue” indicate the products which foreign tourists prefer. Some large, multi-level stores even offer luggage storage services to enhance shopping convenience targeting tourists who make bulk purchases. 

An Olive young official mentioned, “Olive Young not only provides a positive shopping experience for foreign visitors, but also serves as a ‘Global K-Beauty Gateway’ that demonstrates new K-beauty brands for the first time.” “We will continue our lasting efforts to make K-beauty, including K-pop and K-food, a signature tourism experience that represents Korea,” they added. 
 
Mom’s Touch opened a company-operated store in Itaewon—a hot spot for foreign tourists—on April 29th. The store targets a strategy of selling bestsellers such as Chicken Thigh Burger, boneless thigh chicken, and Thigh Pizzas, which have already proven competitive in the existing stores overseas. 

Having already opened directly operated stores in other key tourist spots like Myeongdong and Namsan, Mom’s touch aims to further appeal to international visitors’ tastes by adding the Itaewon location as well. The company also plans to launch a large flagship store in the prime commercial district of Gwanhwamun soon. 

Heated Competition Over ‘K-Souvenir Snakes’ 
Between retail industries, competition in terms of “souvenir snack” for foreign tourists seems attentive as well. K-snacks in particular are increasingly viewed as must-buy items for travelers returning to their home countries. 

Orion has seen strong performance by offering a wide variety of popular K-snacks ideal as souvenirs. According to the company, sales in major tourist zones like Seoul Station and Myeongdong increased by 59% in the first quarter of this year compared to the same period last year. As demand from foreign tourists grow, Orion reinforced its limited edition strategy with items like ▲Bichovi Korea Edition, ▲Market O Brownie Jeju Matcha, and ▲ Market O Brownie Cream Cheese, which are only available in tourist shopping region. 

Especially at the Lotte Mart Zetta Flex Seoul Station Branch, a must-visit shopping spot due to its direct link to Incheon International Airport, the combined sales of five key brands (▲ Cham Bungeoppang,▲ Bichovi, ▲ Almaengi Gummy, ▲Yegam, ▲ Market O Brownie) increased by 91%. 

Among them, Cham Bungeoppang is particularly popular among Chinese tourists. An Orion official explained, “Cham Bungeoppang has the same pronunciation in Chinese as ‘魚(yú)’ meaning fish and ‘余(yú)’ meaning abundance.” They added, “Since fish is known to symbolize wealth in Chinese culture, Cham Bungeoppang has become a favored souvenir for Chinese travelers.”

Featuring a variety of nut based snacks such as almonds and peanuts, HBAF lineup is also gaining popularity among foreign tourists as a souvenir item. Influenced by the demand, HBAF is now exporting its products to 25 countries, including the U.S., Japan, and China. In 2023, its annual revenue surpassed 100 billion KRW. 

CJ CheilJedang is also planning to utilize its affiliate company, Olive Young, to develop and sell food products targeted at the souvenir market. By stocking the products in Olive Young stores, which are frequently visited by foreign tourists, the company aims to naturally boost sales.

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