Korean duty-free sector pins hopes on China group visa waiver to revive sales

The response from Korean duty-free retailers follows Acting President Choi Sang-mok’s pledge to drive tourism growth and stimulate domestic consumption through diversified tourist initiatives.

Mar 27, 2025 - 00:10

Korean duty-free sector pins hopes on China group visa waiver to revive sales

SOUTH KOREA. The country’s duty-free industry has welcomed the government’s announcement to waive visa requirements for Chinese visitors starting in Qe 2025, Chosun Biz reported.

The response from Korean duty-free retailers follows Acting President Choi Sang-mok’s pledge to drive tourism growth and stimulate domestic consumption through diversified tourist initiatives, while also encouraging domestic spending.

As reported by The Korea Herald, The Ministry of Culture, Sports and Tourism is set to unveil the specific details of the visa exemption policy in April, after reviewing public opinion.

Data from the Ministry of Culture, Sports and Tourism indicated 4.6 million Chinese visitors entered South Korea last year, ranking as the top nationality for inbound tourism.

The number of Chinese tourists visiting the country in the first quarter is expected to reach 1.2 million, up +18% year-on-year.

Citing Korean duty-free retailers, Chosun Biz reported that the proposed scheme will serve as a key driver in revitalising the struggling market.

Click on image to read the original article from *Chosun Biz*

The decision follows the Chinese government’s introduction of visa-free entry for Koreans last November. This led to the number of inbound Korean tourists increasing +60% year-on-year within three months.

Industry experts believe the visa exemption will result in similar positive impacts on the domestic market.

**A group of Chinese visitors arriving at Lotte Duty Free in Myeong-dong last year, marking the first large-scale incentive travel group from China since the pandemic {Image: Lotte Duty Free}**

With Chinese travellers representing 70% of visitors and 90% of sales pre-COVID, Lotte Duty Free has raised its expectations for the new policies.

Citing a representative from Lotte Duty Free, Chosun Biz reported that with 10,000 group tourists visiting each month and accounting for 40% of total sales, the retailer expects a boost in revenues as Chinese group business picks up/

In February, Lotte Duty Free hosted 200 tour guides and travel agency representatives from China, Japan and Southeast Asia in a bid to attract more foreign visitors and boost sales {Image: Lotte Duty Free}

The duty-free powerhouse is revising its tourist strategy by collaborating with travel agents on shopping itineraries, rebuilding payment systems and designing specialised marketing to drive sales.

A Shinsegae Duty Free spokesperson also echoed the same optimism, noting the upcoming visa exemption policy could help revitalise the duty-free market.

The company is adjusting its marketing approach to attract high-value tourists through MICE as well as medical and beauty group tourism.

This month, Shinsegae Duty Free is set to welcome 2,000 corporate and incentive group visitors from China and Thailand.

The retailer seeks to attract over 400 customers per month, with an annual target exceeding 5,000 visitors through collaborations with travel agencies to promote medical and beauty tourism packages.