Foreign tourists visiting Korea spent 1 trillion won on food alone

Foreign tourists are emerging as a new growth engine for the food and beverage industry. Their spending is surging, driving a sharp increase in food and beverage expenditures. To attract foreign visitors, companies are stepping up their marketing efforts by introducing overseas payment methods such as Alipay and opening flagship stores showcasing Korean traditions.
According to the Korea Tourism Organization on the 20th, 15.05 million foreign tourists visited the country from January to August this year, up 21.6% from the same period last year. During the same period, foreign visitors’ card spending in the tourism sector rose 48.5% to 14.018 trillion won. The increase reflects the combination of the high exchange-rate trend that has continued since last year and growing enthusiasm for travel to Korea.
The boost in tourism spending by foreign visitors is flowing directly into the food and beverage industry. From January to September this year, foreign visitors spent 1.1756 trillion won on food and beverages in Seoul, up 425.5 billion won (56.7%) from 750.1 billion won in the same period last year. Over the same period, their spending in Busan also rose from 114.3 billion won to 220.6 billion won, an increase of 106.3 billion won (93.0%), while in Jeju Special Self-Governing Province it jumped from 60.3 billion won to 135.3 billion won, up 75 billion won (124.4%).
Through September this year, payments made at Starbucks Coffee Korea Co., Ltd. using WeChat and Alipay surged 62% from the same period last year. Benefiting in particular from the travel boom, the company’s highest-revenue store nationwide this year was the “Incheon Airport T1 Air 3F” location. Demand was concentrated there as both foreign tourists and domestic travelers flocked to the store. In addition, three stores at Incheon International Airport ranked among Starbucks’ top 10 nationwide by sales.
Red ginseng, which has long been popular in Chinese-speaking regions, is also benefiting. Through September this year, sales of CheongKwanJang red ginseng purchased by foreign visitors in Korea rose at least 10% from the same period last year. Sales climbed sharply as foreign tourists sought out red ginseng as a souvenir of their trips to Korea. Since late last year, CheongKwanJang has operated a specialty store at Incheon International Airport inspired by the Joseon royal court and showcasing the brand’s history and tradition.
Specialty stores targeting foreign tourists are also proving popular. Kyochon Pilbang, a flagship store operated by Kyochon F&B Co., Ltd. in Itaewon, Yongsan-gu, Seoul, has established itself as a standard-bearer for K-chicken. The store offers chicken omakase, among other things, and has even been visited by the wife of basketball star LeBron James. Foreign visitors make up 80% of all visitors to the store.
Nongshim has operated the “Ramyun Library” inside a Korean Air lounge at Incheon International Airport since last month. It is a space where visitors can choose from a range of Nongshim’s ramyun and cook it themselves.
A food industry official said, “With growth in the domestic market essentially stagnating, foreign tourists are becoming a new growth engine. They can continue consuming Korean food even after returning to their home countries, making this a case of killing two birds with one stone by also delivering global marketing benefits.”