South Korea Tourism Sector Sees Continued Growth in this Year, Boosting Their Retail, Hotel, and Casino Industries, Strengthening Its Position as a New Shopping and Leisure Hub

Published on November 8, 2025

The tourism industry in South Korea is set to break records in 2025, as foreign tourist arrivals keep increasing amid major gains within the retail, hotel, and casino sectors. Data from the Immigration and Foreign Policy Headquarters Statistical Monthly Report of the Ministry of Justice showed that there were 6,491,846 foreigners who entered the country on tourist (B-2) visas from January to September 2025, a 17.6% increase compared to the same period in 2024. This rise places the country closer to breaking its record high of 7.55 million visitors recorded in 2024, with the current pace indicating that South Korea is on pace to surpass those numbers before the year is out.

A Robust Recovery and Record-Breaking Performance

With foreign tourist numbers soaring, South Korea’s service economy is reaping the benefits. The retail, hospitality, and entertainment sectors have seen a notable rise in demand, driven by increased spending from international visitors, especially from countries like China, Japan, and Southeast Asia. Despite global challenges like supply chain disruptions and fluctuating demand, South Korea’s domestic market has shown impressive resilience, with retail sales and service sector revenue up by 15.3% year-on-year for the first nine months of 2025. Full-year growth is projected to reach 18%, a strong indicator of how vital tourism continues to be for the country’s economic growth.

This growth not only reflects the tourism recovery but also indicates a shift toward a more consumer-driven economy. With tourism contributing significantly to the overall economic output, the country is embracing this momentum as it continues to diversify its offerings to meet the needs of today’s global tourists.

Retail Sector Boom: Global Shoppers Driving Sales Growth

As foreign tourist arrivals increase, South Korea’s retail sector has seen robust growth, especially in luxury goods, electronics, and fashion categories. Major retail players such as Lotte Shopping, Shinsegae, and Hyundai Department Store are benefiting from the influx of international shoppers. Lotte Shopping reported a 0.7% increase in domestic department store sales, with foreign customer spending surging by 39% at its Jung-gu location in Seoul. Meanwhile, Hyundai Department Store saw a 25.8% increase in operating profit, driven by luxury and fashion goods sales, especially during peak travel seasons.

With more tourists spending on high-end products and fashion, the retail boom is not just limited to traditional stores. The rise of e-commerce and digital retail has also been a driving force in the expansion of online shopping for international visitors, facilitating cross-border purchases and integrating the tourism and retail sectors seamlessly.

Tourism and MICE: Driving Hotel and Casino Success

The hotel and casino industries are also experiencing a significant uptick in performance, largely fueled by increased foreign arrivals and visa-free group tours for Chinese visitors. Lotte Tourism Development achieved record-high sales of 186.6 billion won in Q3, with its casino division posting remarkable growth, already surpassing the previous year’s total revenue of 333.9 billion won. The hotel division, particularly at the Grand Hyatt Jeju, reported highest-ever sales of 46.1 billion won and an average occupancy rate of 90.2%, showcasing the rising appeal of South Korea’s luxury hotels among international tourists.

Likewise, Paradise Company and Grand Korea Leisure (GKL), both operators of major casinos, recorded substantial growth in operating profits, reflecting the increasing demand for entertainment tourism in the country. With tourism numbers increasing, the demand for high-quality casino resorts and luxury hotels will continue to rise, further strengthening South Korea’s position as a leading leisure and entertainment destination in Asia.

The Role of Tourism Infrastructure in Expanding Retail Opportunities

To support this rising demand, South Korea is investing heavily in tourism infrastructure, particularly in transportation and logistics. The completion of Metro Line No. 1, connecting major tourist destinations such as Bến Thành Market and Suối Tiên Theme Park, is set to increase the accessibility of key retail and tourism areas. The city plans to integrate metro stations with shopping complexes, public plazas, and pedestrian areas, ensuring that tourists can easily access retail experiences while commuting. This transit-oriented development model helps reduce congestion, cut emissions, and promote efficient land use by developing high-density mixed-use zones around transport corridors.

As the city’s transport network expands, shopping districts like Dongdaemun, Myeongdong, and Insadong are becoming more interconnected, enabling tourists to easily explore a range of retail experiences—from luxury brands to local markets. Additionally, new shopping centers are emerging in areas like Thủ Đức, District 7, and Bình Tân, ensuring that the growing retail offerings spread beyond the downtown core and meet the increasing demand from both local and international shoppers.

Strengthening Green Tourism and Sustainable Retail Practices

As South Korea looks to further develop its tourism industry, sustainability will play a crucial role. The city is focused on creating a green tourism ecosystem, integrating eco-friendly practices across the retail and hospitality sectors. This includes encouraging retailers to use biodegradable packaging, reducing plastic waste, and promoting energy-efficient operations. With sustainability becoming an increasingly important factor for global travelers, South Korea is positioning itself as a destination that balances tourism growth with environmental stewardship.

Moreover, the increasing interest in eco-tourism and responsible shopping is driving retailers to invest in green retail innovations, such as eco-label products, recyclable materials, and energy-saving technologies. This trend not only attracts environmentally conscious tourists but also strengthens South Korea’s image as a destination committed to sustainable development.

A Thriving Future for South Korea’s Tourism and Retail Sectors

Along with continuously improving foreign tourist arrivals and increased consumer spending boosting the retail sector, the tourism economy of South Korea will continue to achieve healthy growth. Leveraging further on the service industries, including tourism, retail, and hospitality, it will continue to enhance economic resilience and offer additional job opportunities to the local people.

Ambitious city plans for the integration of tourism, retail, and transport infrastructure will mold South Korea into a multi-centre metropolis that harmoniously balances economic vibrancy with livability and environmental resilience. In South Korea, along with tourism infrastructure investments, green tourism initiatives, and more international partnerships, the retail and tourism industries can maintain a competitive edge on the world stage, drawing more visitors and setting new records in the years ahead.