More foreign tourists shop like Koreans at Musinsa, Olive Young, Daiso

Foreign tourists shop for beauty care items at an Olive Young branch in Seoul, Feb. 5. Courtesy of Olive Young

Foreign tourists are shopping increasingly at retail chains where goods are not necessarily tax free but offered at affordable prices, hinting at a shift in shopping trends as they used to shop heavily at duty-free stores, data showed Wednesday.

These chains include Musinsa, Olive Young and Daiso, which lead the fashion, beauty care and miscellaneous goods markets in Korea.

The data, compiled by Hana Card, showed that Musinsa saw a whopping 348 percent increase in the number of foreign customers and also a 343 percent hike in their spending in 2024 from a year earlier.

Over the same time period, the number of non-Korean shoppers at Olive Young rose 77 percent and their spending shot up 106 percent.

At Daiso, the number of customers from abroad increased 46 percent from 2023 to 2024, while their spending went up 49 percent over the corresponding period.

On the other hand, duty-free stores recorded comparatively slower growth.

For all duty-free stores nationwide from 2023 to 2024, the number of foreign customers rose by 30 percent and their spending by 40 percent.

“The data suggest a changing spending trend among foreign tourists,” Hana Card said. “Duty-free stores primarily used to serve as a major shopping destination in the past, but retail chains are taking over that role.”

Musinsa, Olive Young and Daiso limitedly offer tax refunds for foreign customers. For instance, shoppers must purchase a minimum amount in a single payment or need to shop at selected stores to get the refunds.

“Despite this restricted policy, these retail chains are drawing more foreign customers because they have a wide range of items to choose from at reasonable prices,” the card firm said.

The card issuer pointed out that Musinsa, once an online-only fashion platform, now operates more than 20 offline stores due to the popularity of its stylish and yet affordable outfits.

A beauty care retailer owned by CJ Group, Olive Young is considered a “must-visit” place for beauty enthusiasts for its vast selection of skin care and makeup products.

An East Asian version of a dollar store, Daiso sells snacks, stationary, digital accessories, kitchenware, cleaning supplies, hygiene products, interior decorations and gardening tools, among thousands of miscellaneous goods.