South Korea’s sales of duty free shops surged in the first half of this year thanks to increasing Chinese tourists.

According to Korea Customs Service on Monday, sales of 50 duty free shops in Korea from January to June came to 5.77 trillion won ($5.1 billion), up 26.1 percent from 4.58 trillion won during the same period of last year. This is the first time for duty free sales in the first half to exceed 5 trillion won.

If the trend continues, sales for this year are estimated at about 12 trillion won, almost twice the figure of 5.37 trillion won in 2011.

Sales from downtown duty free shops in Seoul, Jeju Island and southern port city of Busan reached 4.11 trillion won, accounting for 71.1 percent of total sales. Sales of duty free shops in airports and ports took up 23.9 percent and other tax-free shops 13 percent.

Among the sales, imported goods accounted for 58.4 percent and domestic products, 41.6 percent. Of duty free shop customers, Koreans took up 57.1 percent. A non-Korean national spent $345, more than three times the spending of $103 by a Korean.

The government plans to issue licenses for four new duty free shops in Seoul late this year. Heated competition is expected for an opening in southern Seoul with major players Lotte Duty Free, HDC Shilla Duty Free, Shinsegae Department Store and Hyundai Department Store are all expected to vie.

Lotte Duty Free is hoping to keep the shop that it had shut in June at Lotte World Tower after losing license. Hyundai Department Store wants to open one in at the Trade Center outlet of Hyundai Department Store. HDC Shilla Duty Free is also seeking additional license. Shinsegae Department Store is reviewing its Gangnam outlet located in Gangnam Express Bus Terminal as a candidate of a duty free shop.

The shopping districts in southern Seoul have seen increasing foreign tourists.

By Sohn Il-seon

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]