Daigong and Jeju Tourists... Duty-Free Shops' June Sales Up 9.3% MoM

Increase in Sales from Both Domestic and Foreign Customers
Recovery for Two Consecutive Months Since the Worst April

On the 18th, the duty-free shop at Terminal 1 of Incheon International Airport was quiet due to the impact of the novel coronavirus (COVID-19). Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Cha Min-young] In June, the domestic duty-free industry maintained a recovery trend for two consecutive months since April, supported by the rebound in the Chinese economy and domestic demand.

According to the Korea Duty Free Association on the 24th, the total sales of domestic duty-free shops in June this year amounted to 1.113 trillion KRW, an increase of 9.3% compared to 1.0179 trillion KRW in May. This marks a rebound for two consecutive months since the worst sales recorded in April (986.7 billion KRW), breaking the 1 trillion KRW barrier.

During this period, domestic sales reached 465.2 billion KRW, up 16.9% from 398.1 billion KRW in the previous month. Foreign sales also increased by 9.0% to 1.0665 trillion KRW compared to the previous month, recovering the 1 trillion KRW mark for the first time in about three months since March.

The sharp increase in domestic sales was mainly driven by demand from visits to Jeju Island starting in May. With air routes blocked, Jeju Island emerged as a travel destination for honeymooners and others, leading to increased sales at the JDC Duty Free Shop within Jeju International Airport, which is exclusively for domestic travelers. It is also observed that sales were partly influenced by domestic sales of long-term inventory approved by the Korea Customs Service. In fact, the number of domestic customers in June was approximately 498,700, a 33% increase compared to about 374,700 in the previous month.

Regarding foreign duty-free sales, as China’s domestic market improved, purchases by Chinese daigou (personal shoppers) who have a significant impact on duty-free sales slightly increased. According to the National Bureau of Statistics of China, China’s GDP in the second quarter of this year (April to June) grew by 3.2% year-on-year, rebounding sharply to positive growth after a negative growth (-6.8%) in the first quarter.

A representative of a major domestic duty-free shop said, "The duty-free market was similar to May, but as China’s domestic economy showed signs of recovery, demand from big-spending daigou seems to have slightly increased. However, with no sign of resolution to the COVID-19 pandemic and unresolved challenges such as the rental burden at Incheon International Airport, many difficult issues remain."

This content was produced with the assistance of AI translation services.