Card transactions by tourists in trendy Seongsu-dong soars 973% since 2019

A cafe located in Seongsu-dong in eastern Seoul / Captured from Seoul Metropolitan Government website

Since the end of the COVID-19 pandemic, the spending patterns of tourists in Seoul have shifted towards seeking more enjoyable experiences in trendy districts within the capital city. This marks a departure from their previous focus on shopping-centric activities in commercial districts.

This is according to BC Card, which analyzed credit card transactions in Korea by tourists. The card company compared last year's data to 2019 numbers, before the pandemic erupted.

It was found that areas in Seoul offering cafes and instant photo services experienced a notable surge in revenues from foreign visitors. Specifically, Seongsu-dong in eastern Seoul, known for its abundance of cafes and instant photo booths, witnessed a staggering 973 percent increase in credit card transactions by tourists last year compared to four years ago.

Yeouido-dong, situated within Seoul's financial district of Yeouido, and the affluent and trendy Hannam-dong, also experienced significant increases in the number of card transactions by tourists. Yeouido-dong saw a rise of 479 percent, while Hannam-dong observed a 429 percent increase last year compared to 2019.

The significant increase in spending in Yeouido-dong is largely attributed to The Hyundai, a mega-sized department store that opened in 2021. The luxury department store, as well as nearby hotels, led the influx of tourists into the area.

In fact, while sales and earnings at department stores and duty-free shops in central Seoul, traditionally popular shopping destinations among foreigners, decreased by 77 percent and 85 percent, respectively, compared to 2019 figures, the sales and earnings in department stores and duty-free shops in Yeongdeungpo District, where Yeouido is located, increased by four times and two times, respectively.

A group of tourists take photos at Gyeongbokgung Palace in central Seoul, Monday. Yonhap

By sector, the revenues from experience-focused industries, such as karaoke and instant photo booths, accounted for approximately seven percent of foreign tourists' spending in 2023. This marks a significant increase from around one percent in 2019, representing nearly a seven-fold rise.

On the other hand, the proportion of shopping sectors, which traditionally benefited group tourists, was 79 percent in 2019, but decreased significantly to 58 percent last year.

As a result, the number of tourists' credit card transactions in Sogong-dong in central Seoul, Jamsil 3-dong, and Jangchung-dong, where major duty-free shops are situated, declined significantly by 90 percent, 88 percent, and 77 percent, respectively, compared to figures from four years ago.

Streets of Seongsu-dong in eastern Seoul / Captured from Seoul Metropolitan Government website

As tourists increasingly prioritize pleasure-seeking experiences over shopping, there has been a rise in card transactions during the evening and late-night hours. Conversely, spending during the morning and afternoon hours has shown a decreasing trend.

According to the data, October is the most favored period for visits to Korea among tourists.