[Market Focus] Shinsegae Up 6% on Rising Inbound Tourism

Shinsegae is showing an upward trend on news of an increase in the number of tourists visiting Korea.

As of 9:10 a.m. on March 11, Shinsegae was trading at 352,000 won, up 6.51% (21,500 won) from the previous trading day.

Kiwoom Securities stated in a report released on this day that the increase in inbound tourists is becoming more pronounced, and added, "Our most preferred outlook for the domestic department store sector remains valid."

Sangjun Park, an analyst at Kiwoom Securities, cited several factors, including the weak Korean won, the indirect benefits stemming from political tensions between China and Japan, and the fact that during the recent Lunar New Year season, Chinese tourists showed a strong preference for warmer Southeast Asian destinations. He stated, "From spring onwards, demand from inbound tourists to Korea is expected to further accelerate."

He analyzed that the sales growth of the three major department store companies in the fourth quarter of last year was driven by the trickle-down effect from strong performances by export-oriented companies, as well as the strength in the stock and real estate markets, which stimulated the purchasing power of high-income groups and led to improved earnings.

Analyst Park stated, "The growth in domestic fashion sales at department stores and the rebound in sales at convenience stores suggest that the recovery in consumption is not limited to a specific group." He added, "While previously the recovery in consumption was mainly concentrated among high-net-worth individuals and high-income earners, recently, with the stock market rally and improvements in income, this positive trend is spreading to the middle class as well."

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