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  • Soaring Prices for New Apartment Rights in Seoul Amid Supply Shortage
    Soaring Prices for New Apartment Rights in Seoul Amid Supply Shortage As the scarcity of new apartments in Seoul increases, the prices of apartment rights and occupancy rights are rising sharply even before residents move in. This trend is attributed to a decrease in available units and a simultaneous increase in housing prices, leading to heightened demand for securing new apartments in advance.According to the Ministry of Land, Infrastructure and Transport's real transaction disclosure system, a total of 552 transactions for apartment rights and occupancy rights occurred in Seoul from January to June this year. During the same period, the number of new apartment units available for occupancy dropped by 43.9%, from 30,428 units last year to 17,061 units this year, further increasing the scarcity of new builds.The most frequently traded development among the apartment rights and occupancy rights this year was the Seoul Won I-Park, part of the Gwangwoon University Station development project.The 84-square-meter unit at Seoul Won I-Park was sold for 1.4 billion won (approximately $14 million) in December last year, but the price surged to 1.81 billion won (about $18.1 million) in May this year, marking an increase of about 400 million won. The 112-square-meter unit was sold for 2.02 billion won (around $20.2 million) in June, which is about 200 million won higher than the highest price at the time of its sale in 2024.Initially, the Seoul Won I-Park faced criticism for its high selling price and some unsold units. However, as the supply of new apartments in Seoul dwindled and expectations for the Gwangwoon University Station development grew, market evaluations shifted. Industry analysts suggest that a project once labeled as 'overpriced' is now being reassessed as a 'value-for-money new build.'In developments nearing completion, price increases have been even more pronounced. The 84-square-meter unit at The H Banpo, set to be completed in September, was sold for 3.4 billion won (approximately $34 million) in March last year, and in April this year, it sold for 3.69 billion won (about $36.9 million), reflecting an increase of about 300 million won in just over a year. This has created a premium of up to 1.7 billion won compared to the initial selling price, which ranged from 1.94 billion won to 2.24 billion won.In completed developments, both a decrease in transaction volume and an increase in prices have been observed. The Dongdaemun-gu I-Park Jiah, which began occupancy in November last year, recorded 109 transactions from January to November last year, but only 11 transactions from January to June this year. Meanwhile, the average transaction price for the 84-square-meter unit rose from 1.315 billion won (approximately $13.15 million) in February last year to 1.83 billion won (about $18.3 million) in May this year, indicating that while transactions have decreased, prices have actually increased.Similar trends are evident at the Gwangjin-gu Gangbyeon Station Central I-Park, which is also set to complete in November. The 84-square-meter unit rose from 1.4938 billion won (around $14.9 million) in June last year to 2.25 billion won (approximately $22.5 million) in June this year, an increase of about 760 million won. However, this development has only seen three transactions, limiting the ability to view this as a definitive trend.In the Gangnam area, the value of the location has driven price increases. The occupancy rights for the 111-square-meter unit at Cheongdam Leel rose from 7 billion won (approximately $70 million) last year to 8.3 billion won (about $83 million), an increase of 1.3 billion won.Kwon Dae-jung, a professor of real estate economics at Hansung University, stated, "The primary reason for the rising prices of new apartment rights and occupancy rights is the supply shortage. When supply is sufficient, buyers can wait for new sales, but in a situation where new builds are scarce, demand for existing rights increases, driving prices up."He added, "As the completion date approaches, the premium increases because the time for realizing the use value is nearing. Once a buyer secures a unit, their funds are tied up for several years, so the shorter that period, the higher the value of the rights becomes."Industry experts predict that the shortage of new apartment supply in Seoul will continue for the foreseeable future, suggesting that the strength of the apartment rights and occupancy rights market may persist. However, uncertainties remain regarding interest rates, lending regulations, and the potential for increased supply, making it difficult to definitively predict the upward trend.* This article has been translated by AI. 2026-07-13 15:44:00
  • Fast-Tracking Semiconductor Industrial Complex in Honam Region
    Fast-Tracking Semiconductor Industrial Complex in Honam Region The Ministry of Land, Infrastructure and Transport has announced plans to expedite the establishment of a semiconductor industrial complex in the Honam region.Minister Kim Yun-deok stated during a national fiscal strategy meeting chaired by President Lee Jae-myung at the Blue House on July 13 that the complex, to be built on the site of the Gwangju military airport in Jeonnam, will have its timeline significantly shortened from the usual 10 years to align with corporate schedules.Kim noted that once companies and the Ministry of Trade, Industry and Energy submit site plans to the Ministry of Land, the site will be designated within a month. The government will also seek to exempt preliminary feasibility studies for public institutions from Cabinet review and will fast-track the permitting process in collaboration with relevant agencies.The Ministry plans to commence site development immediately upon receiving the land from the Ministry of National Defense.The Honam semiconductor national industrial complex is envisioned as a 'corporate-type advanced city' that integrates industry, innovation, and residential functions with transportation infrastructure. The Ministry aims to create a mixed-use industrial city that not only provides the necessary production base for corporate activities but also includes housing and living infrastructure for workers.Kim emphasized, "We will create a residential complex town that rivals the metropolitan area, supplying specialized rental housing as proposed by companies and supporting housing stability through special provisions for workers if necessary."He also outlined plans to enhance transportation and logistics infrastructure, aiming for a 30-minute commuting zone and a one-hour import-export logistics zone through a high-speed transportation and logistics system. The government will expand infrastructure support, including access roads to the industrial complex, and strengthen the national transportation network, including roads and railways.Kim added, "Since nearly 100% of semiconductor exports are transported by air, we will enhance the infrastructure and functionality of Muan International Airport, the gateway airport for the Honam region."The Honam semiconductor complex is expected to secure a competitive edge distinct from the metropolitan semiconductor cluster by attracting corporate investments while simultaneously enhancing residential, transportation, and airport infrastructure.The government is also accelerating the establishment of the Yongin semiconductor national industrial complex in the metropolitan area. Kim stated that efforts will be made to advance the overall schedule from 2047 to as early as 2040, potentially shortening it by up to seven years.Additionally, discussions are underway to expedite the operational timeline for the first fabrication plant in line with corporate investment plans, and the government aims to complete land compensation by the end of the year while concurrently addressing compensation and expropriation procedures.* This article has been translated by AI. 2026-07-13 15:44:00
  • DL Construction Selected as Preferred Negotiation Partner for Pyeongtaek Godeok A-70BL Project
    DL Construction Selected as Preferred Negotiation Partner for Pyeongtaek Godeok A-70BL Project DL Construction has been selected as the preferred negotiation partner for the public-private housing construction project A-70BL in Pyeongtaek Godeok International City, commissioned by the Korea Land and Housing Corporation (LH). According to DL Construction on July 13, the total project cost is estimated at 411.9 billion won. DL Construction is participating as the lead company with a 51% stake, forming a consortium with Gyeryong Construction, Namkwang Engineering & Construction, Jeil Construction, Godeok General Construction, and ESI. The project site covers an area of 60,662 square meters within Pyeongtaek Godeok International City. It will consist of 10 buildings with a total of 1,225 publicly offered apartments, ranging from two basement levels to a maximum of 27 stories, with each unit having a dedicated area of 84 square meters. Construction is set to begin in December 2026, with completion targeted for the second half of 2029. This contract marks DL Construction's second consecutive win in LH's public-private partnership projects, following last year's Gwangmyeong Siheung S2-4BL and S2-6BL projects. Including this year’s projects with Busan Urban Corporation at Eco Delta City 1BL and Incheon Urban Corporation at Geomam S-2BL, this will be their fourth public-private partnership contract. The development will feature the 'e-Pyeonhansesang' brand, the first of its kind in Godeok International City. All units will be oriented southward, and a central park of approximately 24,300 square meters will be created, allowing all units to overlook the park. The distance between buildings will be maximized to 120 meters, and plans include a unified main gate and central community facilities. Pyeongtaek Godeok International City spans 17.26 million square meters and is expected to supply around 61,000 housing units. The area is anticipated to see sustained residential demand, particularly due to the nearby Samsung Electronics Pyeongtaek campus, and there is also expected demand for commuting shuttle buses. A representative from DL Construction stated, "We were selected as the preferred negotiation partner based on our experience in public-private partnerships and brand competitiveness. We will continue to expand our participation in such projects to strengthen our stable order base." Additionally, DL Construction announced on July 7 that it has maintained its corporate credit ratings and commercial paper (CP) ratings from major credit rating agencies. Korea Ratings has kept DL Construction's corporate credit rating at 'A- (Stable)' for six consecutive years, while NICE Investors Service has maintained its CP rating at 'A2-' for three consecutive years.* This article has been translated by AI. 2026-07-13 15:44:00
  • South Korea Establishes Future Response Fund to Invest in Key Sectors
    South Korea Establishes Future Response Fund to Invest in Key Sectors 정부가 반도체 대호황에 따른 '추가 세수'를 활용해 '미래대응기금'을 신설하겠다고 밝혔다. 정부는 미래대응기금을 미래·청년·지방·교육 등 4대 분야에 대해 집중 투자하고 이를 통해 경제 성장 잠재력을 높이겠다는 계획이다. 이재명 대통령은 13일 청와대에서 국가재정전략회의를 주재하면서 취임 2년 차 국정 비전인 '대체불가 대한민국' 달성을 위한 재정 운영의 세 가지 원칙 중 첫째로 미래대응기금을 거론했다. 이날 회의는 현 정부 출범 후 사실상 처음으로 범정부적 재정 운영 방안을 논의하는 자리였다. 통상 재정전략회의는 내년도 예산안 논의가 주를 이루지만 이번에는 추가 세수에 대한 관심이 집중됐다. 정부는 국가재정법에 규정된 '초과 세수' 대신 '추가 세수' 개념을 특별법상 신설해 지방균형발전·청년 정책 등에 쓰겠다는 것이다. 정부는 추가 세수(초과 세수)를 다른 곳에 사용하기 위해 더불어민주당 내 기금신설 관련 기구를 만들고, 내년도 예산안 편성 시기인 8월 말쯤 구체적인 계획을 공개할 것으로 예상된다. 이 대통령은 "이번 추가 세수는 전 세계의 인공지능 패권이 결정되는 골든타임에 쓰일 소중한 재원"이라며 "경제 성장 잠재력을 높이고 과실을 모든 국민에게 돌려드리려면 과감하고 지속적인 투자를 담보하는 전략적 투자 플랫폼이 필요하다"고 강조했다. 이어 "둘째 원칙으로 정부가 발표한 '3대 메가 프로젝트'를 우리 경제의 새로운 기회로 만들어낼 것"이라며 "반도체·피지컬 AI(인공지능)·AI 데이터센터 등에 대한 투자가 기업의 시간표대로 제대로 이뤄지도록 정부의 역량을 총동원해 집중 지원하겠다"고 밝혔다. 이 대통령은 "필수 자원인 전력·용수의 안정적인 공급은 기본"이라며 "교통·물류·인프라 확충, 주거·교육·의료·문화 등 정주 여건을 개선하고 혁신의 기반까지 갖춰 대한민국의 새로운 성장 거점을 만들겠다"고 약속했다. 마지막 셋째 원칙으로는 '모두의 성장'을 언급했다. 이 대통령은 "모두의 성장을 통해 그 누구도 소외되지 않는 대한민국을 만들겠다"며 "사회 첫발을 내딛는 청년들에게는 일자리부터 주거, 자산 형성까지 생애주기 전반을 아우르는 지원체계를 마련할 것"이라고 약속했다. 이 대통령은 "AI 인공지능 시대 불가피하게 늘어날 비정형 노동자들도 빈틈없이 보호받을 수 있도록 사회안전망을 '사회 안전매트' 수준으로 강화하겠다"며 "국민 모두가 인공지능 기술 발전의 혜택을 누릴 수 있도록 정부가 최선을 다해 지원하겠다"고 덧붙였다. 이 대통령은 "오늘 우리가 논의할 재정의 방향은 앞으로 대한민국의 20년, 30년을 결정하게 된다"며 "모두가 대한민국의 최고 재무 책임자라는 각오로 논의에 임해달라"고 당부했다. 한편 기획예산처는 내년도 국세 수입 규모를 당초 전망한 412조원을 훌쩍 넘어 '500조원+α(알파)'에 달할 것으로 전망했다. 박홍근 기획예산처 장관은 이날 회의에서 2027년 예산안 편성 방향과 중기 재정운용 방향을 발표하고 "내년도 총지출은 올해 본예산보다 10% 이상 늘어난 '800조원+α'로 역대 최대 규모로 편성할 것"이라고 밝혔다. 2026-07-13 15:44:00
  • Korean Economic Growth Forecasts Rise Amid Semiconductor Boom
    Korean Economic Growth Forecasts Rise Amid Semiconductor Boom Foreign investment banks and international financial organizations are raising their forecasts for South Korea's economic growth, increasing the likelihood that the Bank of Korea will also revise its growth outlook upward this year. Expectations are growing that the semiconductor boom, driven by increased investment in artificial intelligence (AI), will last longer than previously anticipated.According to the International Financial Center on July 13, the average forecast for South Korea's real GDP growth from major foreign investment banks at the end of last month was 3.0%. This marks the first time the average growth forecast from foreign investment banks has reached the 3% range. JP Morgan provided the highest growth forecast at 3.7%, while Citibank raised its estimate by 0.5 percentage points to 3.5%, also predicting growth in the 3% range.International financial organizations have also increased their forecasts. The International Monetary Fund (IMF) raised its growth forecast for South Korea from 1.9% to 2.6%, marking the largest increase among advanced economies. The Asian Development Bank (ADB) also projected a growth rate of 2.6%, an increase of 0.7 percentage points, and the Organization for Economic Cooperation and Development (OECD) made a similar forecast.The background for these upward revisions is the semiconductor boom. Strong demand for high-performance semiconductors, driven by AI investment, is boosting export growth and raising expectations for South Korea's economic growth. The Bank of Korea noted that the pace of semiconductor demand growth is outpacing supply due to AI investments, indicating a different pattern from the cyclical semiconductor cycles of the past.In particular, advanced semiconductors like high-bandwidth memory (HBM) face ongoing supply constraints due to high processing difficulties, suggesting that the expansion phase driven by supply-demand imbalances will continue at least until the first half of next year. Supply shortages are expected to persist until new factories from SK Hynix and Micron begin operations next year.The semiconductor boom is also leading to improvements in exports and the current account balance. As of May this year, the cumulative current account surplus reached $141.28 billion, more than four times the $33.9 billion recorded during the same period last year. In May alone, the current account recorded a surplus of $38.61 billion, setting a new monthly record. Furthermore, the Bank of Korea anticipates that the current account surplus for June will be around $40 billion.This trend is likely to be reflected in the Bank of Korea's growth forecast. In its revised economic outlook in May, the Bank of Korea significantly raised its growth forecast for this year from 2.0% to 2.6%. Bank of Korea Governor Rhee Chang-yong indicated in a recent report to the National Assembly that there is upward pressure on the growth forecast (2.6%), suggesting the possibility of further increases. The Bank of Korea is expected to present its revised economic outlook in August.Shin Young-koo, a researcher at Shinhan Investment Corp., stated, "The Bank of Korea is expected to raise the base rate by 25 basis points at the July Monetary Policy Committee meeting and further adjust the growth forecast upward in the August revision."* This article has been translated by AI. 2026-07-13 15:40:00
  • Construction Sector Faces Prolonged Slump Amid Financial Strain
    Construction Sector Faces Prolonged Slump Amid Financial Strain The prolonged fallout from issues in real estate project financing (PF) has left the construction sector's corporate sentiment struggling to recover. With the Bank of Korea likely to raise its benchmark interest rate this month, concerns are growing that funding pressures for the construction and real estate sectors may intensify.According to the Bank of Korea's economic statistics system on July 13, the non-manufacturing corporate sentiment index (CBSI) fell to 95.4 last month, a decrease of 2.1 points from the previous month. In contrast, the manufacturing CBSI recorded 101.2, exceeding the neutral benchmark of 100.The CBSI is a sentiment indicator derived from key metrics of the business survey index (BSI), where a score above the long-term average of 100 (2003-2024) indicates optimistic sentiment, while a score below reflects pessimism.Among non-manufacturing sectors, the construction industry's struggles are particularly pronounced. The construction performance CBSI, which dropped to 43 in February last year before showing some recovery, remained at 52 last month, significantly below the long-term average. The real estate sector, closely linked to construction, also continued to show weakness with a score of 69.The ongoing slump in the construction market is attributed to a combination of high interest rates, a tightening real estate PF market, and soaring construction costs since 2022. Increased funding costs, coupled with a sluggish housing market and reduced demand, have led to declines in both construction starts and investments.The instability in the PF market is seen as a key factor hindering recovery in the construction sector. When initial funding for projects is blocked, it leads to construction delays, increased unsold inventory, and declining profitability.In fact, the slowdown in the construction market is impacting related industries as well. This year, the cement industry plans to invest 429.7 billion won, a decrease of about 10% from last year and down 13.9% compared to the average over the past five years.A significant concern is that the construction sector's struggles are also increasing pressures on the financial sector's stability. According to the Bank of Korea's financial stability report, the delinquency rate in the construction sector rose to 5.48% in the first quarter of this year, influenced by the realization of contingent liabilities from real estate PF failures. The delinquency rate in the real estate sector also reached 3.01%.The debt-to-equity ratios for both the construction and real estate sectors peaked between 2022 and 2023, and a gradual deleveraging process is underway. However, as the construction slump continues, the interest coverage ratio has not shown significant improvement, indicating that profitability and debt repayment capabilities remain weak.With the Bank of Korea likely to raise interest rates this month, the burden on the construction industry is expected to increase further. Rising rates could elevate PF loan costs and corporate borrowing expenses, further deteriorating the debt repayment ability and profitability of construction firms.Kim Hyun-tae, a researcher at the Korea Financial Research Institute, stated, "As the construction market continues to slump, the proportion of marginal firms in both the construction and real estate sectors is increasing. The vulnerabilities in terms of interest payment capacity and profitability remain, making it difficult to conclude that the overall risk of insolvency in the sector has been adequately addressed."He added, "Given the likelihood of continued construction market weakness even in a rising interest rate environment, it is essential to provide short-term liquidity support while also pursuing long-term improvements in financial structures, along with strengthening selective credit supply systems based on individual firms' performance and debt repayment capabilities."* This article has been translated by AI. 2026-07-13 15:36:00
  • Homeplus Temporarily Halts Operations, Pays 40% of June Salaries
    Homeplus Temporarily Halts Operations, Pays 40% of June Salaries Homeplus has confirmed that it is paying employees 40% of their June salaries in phases as it suspends store operations due to depleted operating funds. The resolution of unpaid wages and securing operational funds is expected to be crucial for the company's future stabilization, especially with the deadline for an immediate appeal against the decision to terminate its rehabilitation process approaching.According to the retail industry on July 13, Homeplus began depositing 40% of June salaries to employees around 1 p.m. The company had completed payments for May salaries by early this month and stated that the only remaining unpaid wages are for June. As of July 8, Homeplus reported a total of 33.2 billion won in unpaid June wages. The company is committed to ensuring that employee salaries are not delayed for an extended period.However, there are delays in severance payments separate from salaries. Homeplus recently notified former employees that due to a lack of funds, severance payments for those who left in mid-June may be delayed.Starting today, Homeplus has also begun to gradually suspend operations at its large retail stores. This decision is attributed to the depletion of operating funds, making it difficult to cover not only product costs but also essential operating expenses such as electricity and water bills. However, tenants in shopping malls may continue to operate if they choose to do so.Homeplus explained that this was an unavoidable measure to ensure the safety of customers and employees amid growing concerns over safety due to the departure of facility management personnel.Meanwhile, Homeplus plans to focus on securing funding by the appeal deadline of July 20 regarding the termination of its rehabilitation process. The decision to resume store operations will depend on the court's final judgment.Previously, the Seoul Bankruptcy Court decided to terminate Homeplus's rehabilitation process, citing the lack of a viable plan to secure the minimum operating funds of 200 billion won necessary for executing its rehabilitation plan. However, if a feasible plan for securing operating funds is presented within the appeal deadline, the court may reconsider whether to maintain the rehabilitation process.* This article has been translated by AI. 2026-07-13 15:32:00
  • Education Ministry Selects 82 Schools for 2026 Vocational High School Restructuring Project
    Education Ministry Selects 82 Schools for 2026 Vocational High School Restructuring Project The Education Ministry is taking steps to enhance the competitiveness of vocational high schools in response to rapidly changing industry demands. The "2026 Vocational High School Restructuring Project" has finalized the selection of schools focused on restructuring programs in promising new industries such as artificial intelligence (AI), software (SW), and robotics. This restructuring is expected to enable approximately 75.9% of vocational high schools to operate curricula aligned with the new industrial environment. On July 14, the Education Ministry announced the results of the school selection for the "2026 Vocational High School Restructuring Project," which aims to support the restructuring of programs in specialized and Meister high schools to enhance their competitiveness in line with changes in industrial structure. Since 2016, the ministry has consistently supported the restructuring of a total of 440 schools and 1,247 programs. This year, 87 schools and 133 programs applied, and after thorough review by curriculum experts, 82 schools and 117 programs were ultimately selected. Among the selected programs, those in the AI and SW sectors accounted for the largest share, with 69 programs (59%). This was followed by 23 programs (20%) in mobility and bio-related regional strategy and specialized industries. Notably, this year's selection results highlight a significant expansion of AI-related courses within the curricula. A total of 79 programs, or 67.5% of the selected programs, included plans for AI-related courses. This marks a substantial increase from 31.3% in 2024 and 48.9% in 2025, reflecting a proactive response to the growing demand for skilled workers in industries adopting AI technologies. In terms of subject areas, the mechanical field accounted for the largest share at 21.4%, reflecting strong demand for talent in advanced manufacturing. This was followed by management and finance (12.8%), culture, arts, design, and broadcasting (12.8%), and electrical and electronic fields (11.1%). The selected schools will undergo a preparation period of about one year and will welcome new students into the restructured programs starting in the 2028 academic year. The Education Ministry anticipates that by 2028, approximately 75.9% of all vocational high schools will operate restructured curricula. To ensure successful program restructuring, the Education Ministry and local education offices will provide substantial financial support, with approximately 375 million won allocated per class. This budget will be used for curriculum and teaching material development, teacher training, and improvements to facilities and practical training environments. Additionally, specialized consulting linked to industry will be provided. Continuous support from industry experts will be available for selected programs from before the enrollment of new students until the first graduates are produced, ensuring that the curricula reflect industry changes and workforce demands. Yoo Ji-wan, a school support officer at the Education Ministry, stated, "The restructuring of vocational high schools is not merely a change in program names but a process of innovating curricula to respond to changes in future industrial structures. We will actively support tailored program restructuring based on industry demand and regional strategic industries, enabling vocational high school students to develop the skills needed for the future society."* This article has been translated by AI. 2026-07-13 15:32:00
  • Government Plans Record Budget of 800 Trillion Won for 2027
    Government Plans Record Budget of 800 Trillion Won for 2027 The South Korean government is set to enhance its financial role by preparing a record budget and establishing a future response fund to seize the golden opportunity for national development during a period of structural transition, including industrial transformation.President Lee Jae-myung convened the '2026 National Financial Strategy Meeting' at the Blue House on July 13. During the meeting, Minister of Strategy and Finance Park Hong-geun assessed the financial operating conditions and presented the budget proposal for the upcoming year along with medium-term financial management plans.Minister Park noted that since the establishment of the people's sovereignty government, the country has maintained an active fiscal stance, leading to an economic rebound and a semiconductor boom. However, he emphasized the need to continue expanding investments to secure the 'golden time' as the nation enters a period of structural transition marked by advancements in artificial intelligence and industrial transformation. He stated, "Total expenditures for 2027 will be structured at over 800 trillion won, an increase of more than 10% compared to the 2026 budget."In response, the government outlined four key investment directions: a shift in the national growth paradigm, local-led growth, improvement of polarization structures, and the establishment of a foundation for public safety and peace. Notably, the government plans to prioritize funding for three mega-projects: semiconductors, AI data centers, and physical AI.The government aims to increase investment capacity not only by relying on additional tax revenues but also through the largest expenditure restructuring in history.Minister Park mentioned, "National tax revenue for 2027 is expected to exceed 500 trillion won, marking the highest tax revenue ever. The future response fund will be a way to utilize this valuable revenue." He added, "By combining increased tax revenue with rigorous expenditure restructuring, we will create the largest investment capacity in history."The establishment of the future response fund aims to accumulate additional tax revenues that exceed long-term trends and focus investments in four key areas: the youth generation, growth drivers, local regions, and talent development.* This article has been translated by AI. 2026-07-13 15:32:00
  • Department Stores Report Record Foreign Sales in First Half of 2026
    Department Stores Report Record Foreign Sales in First Half of 2026 Lotte, Shinsegae, and Hyundai department stores achieved record foreign sales in the first half of 2026. Each company reported sales between 500 billion and 600 billion won, signaling the imminent arrival of the '1 trillion won foreign sales era.' The competition to attract global tourists is intensifying, driven by experiential strategies that combine shopping with K-pop, K-beauty, culinary, and tourism content. According to industry reports on July 13, Lotte Department Store recorded 640 billion won in foreign sales during the first half of the year, reaching approximately 87% of last year's total foreign sales of 734.8 billion won in just six months. The company anticipates achieving 1 trillion won in foreign sales by the third quarter if the current trend continues. Shinsegae Department Store also saw a significant increase, with foreign sales rising 120% year-on-year to 580 billion won. This figure represents 90% of its total sales for 2025, which were around 650 billion won, indicating a strong possibility of surpassing 1 trillion won in annual sales. Unlike competitors that include outlet and mall sales, Shinsegae's results are based solely on department store sales. Hyundai Department Store's foreign sales reached approximately 500 billion won in the first half of the year, showing a rapid increase compared to last year's total of about 700 billion won. Notably, the foreign sales at The Hyundai Seoul, which exceeded 20% of total sales, surged by 134% compared to the same period last year. Foreign consumer spending is expanding beyond luxury goods to include fashion, beauty, and food and beverage sectors. Lotte Department Store reported a 130% increase in luxury goods sales and a 135% rise in fashion items. Similarly, Shinsegae Department Store experienced high growth rates across most categories, including luxury goods (129.3%), men's fashion (110%), women's fashion (89.4%), cosmetics (87.3%), and food and beverages (62.9%). The nationalities of foreign customers are also diversifying. At Shinsegae Department Store, the proportion of sales from Chinese customers dropped from 77.5% in 2019 to 48.5% in the first half of this year. In contrast, the share of American customers increased from 1.1% to 19.1%, while other Asian countries, including Southeast Asia, rose from 4.4% to 14.9%. Lotte Department Store's main branch is also seeing an increase in visitors from the Americas and Europe, beyond just the Chinese market. Department stores are accelerating their competition by combining tourism, shopping, and cultural content. Lotte Department Store is attracting a global young clientele with its K-Fashion specialty store, 'Kinetic Ground,' which generates about 70% of its sales from foreign customers. In Jamsil, the store has established a tourism course linking Lotte World Tower, Lotte World Mall, and the aquarium. The Busan main store and Dongbusan branch reported sales growth rates of 150% and 170%, respectively, due to the increase in foreign tourists. Shinsegae Department Store is enhancing its landmark strategy by showcasing K-pop content, including performances by BTS and Boynextdoor, at its Myeongdong flagship store, combining shopping and tourism. The Gangnam branch is developing into a global shopping hub by integrating culinary experiences with the Han River tourism district and Sweet Park, while the Centum City branch saw a 230% increase in foreign sales, driven by a rise in cruise tourists in Busan. The enhancement of services for foreign customers is also ongoing. Hyundai Department Store introduced the industry's first AI shopping assistant, 'Heidi Global,' last June, and added voice translation features in June of this year. As of July 1, it began supporting Spanish and French. The store has partnered with Thailand's Siam Piwat Group, Japan's Hankyu Department Store, and Singapore's Marina Bay Sands to offer exclusive VIP services for their customers visiting The Hyundai Seoul and Trade Center branches. Lotte Department Store operates official channels on Chinese platforms such as Xiaohongshu, Godukjido, and Dazhongdianping, and plans to introduce UnionPay QR payments and NFC quick passes in September, a first in the industry. Shinsegae Department Store is also expanding collaborations with global payment platforms like UnionPay, Alipay, Line Pay, and JCB, while enhancing country-specific promotions. An industry insider stated, "Attracting foreign customers has become a core growth strategy for department stores, going beyond mere sales expansion. We expect competition to differentiate through store-specific tourism content, AI services, and global payment systems to intensify further."* This article has been translated by AI. 2026-07-13 15:28:00