K-beauty popularity props up Busan's tourism and retail market

Foreign tourists show Olive Young's skin analysis results/ AJP Candice Kim

BUSAN, September 25 (AJP) - South Korea’s southern port city of Busan is riding a surge of foreign arrivals as more visitors venture beyond the capital region — and beauty chain Olive Young is reaping the rewards.

According to Busan metropolitan authorities, foreign tourist arrivals reached 2.03 million through July, up 23 percent from a year earlier. The influx has delivered a welcome boost to the local retail market. International purchases at Busan Olive Young outlets totaled 758,385 as of August, up 70 percent from a year earlier — and a staggering leap from just 19,439 in 2022.

Olive Young’s test bed outside Seoul

Busan carries strategic importance for Olive Young, serving as the brand’s first franchising test bed beyond the Seoul metropolitan area. Starting with its Busan National University Station branch in 2008, the chain now operates 85 stores across the city.

A field visit to three flagship locations highlighted strategies tailored to diverse foreign shoppers.

“We came to Busan because our social media Xiaohongshu recommended the area to us,” said Jesse Wang, 37, from China, browsing at Olive Young’s Delight Project Store. “We came here to pick up snacks for our friends back home.”

At the Seomyeon 1st Street store, product names are displayed in both Korean and English, while shelves mix K-beauty items with instant noodles and snacks promoted alongside Netflix hit K-pop Demon Hunters. Foreign customers account for 65 percent of this location’s revenue.

Nearby, the Seomyeon Town branch — spanning 270 pyeong (about 8,900 square feet) — stands as the largest Olive Young store outside Seoul. During June’s Olive Young sale, daily visitors topped 10,000.

Global draw, local twists

Tourists from 170 countries visited Busan Olive Young stores in 2024, representing 88 percent of UN member nations. In the Haeundae tourism district, foreign purchases jumped 105 percent year-on-year between January and August.

Just blocks from the Town branch, the Seomyeon Bujeon Central store operates until 11 p.m., the latest hours among all Olive Young outlets nationwide. The extended schedule makes it the top location for product tester usage, as late-night shoppers from nearby bars and entertainment venues sample skincare lines.

“We’ve been to many Olive Young stores during our trip, but this one stood out,” said Janet Yim, 30, and Hira Qureshi, 31, from Chicago at the Jeonpo Station branch. “We even got our skin analyzed by a machine — like a fun dermatology test. We didn’t know we had dry skin until then.”

The Jeonpo Station outlet caters to younger shoppers in their 20s and 30s with skin analysis and personal color consultation services. Olive Young has expanded such experiential features nationwide, designating more than 110 stores as “Global Tourism Commercial Districts” with multilingual signage, foreign-language staff, and immediate tax refunds on purchases over 15,000 won.

Local flavors, new frontiers

Region-specific products drive much of the foreign enthusiasm. The Delight Project Haeundae store, the first standalone branch for Olive Young’s health snack brand, features Busan-themed specialties such as Seed Hotteok Dalgona and the Haeundae Red Pepper Cake Gift Collection.

Olive Young aims to cement its role as a tourist retail magnet by fusing experiential content with merchandising — positioning itself at the crossroads of K-beauty, tourism, and local flavor.

Candice Kim candicekim1121@ajupress.com