Foreign tourists spent more than 1 trillion won ($745 million) in Busan from January through September, the first time any South Korean region outside Seoul has crossed that line, according to figures reported by The Korea Herald on Saturday. The milestone comes as the country's record run of inbound travel spreads to second cities, and as its largest retailers redraw store plans around it.

For investors in Korean consumer stocks, the shift matters because the visitor surge has so far been a Seoul story, concentrated in Myeong-dong, Seongsu and the flagship department stores. Spending outside the capital opens a second leg of growth for chains with regional store networks, and it changes where capital is going: Shinsegae, Lotte Department Store, CJ Olive Young and Musinsa are all moving money into Busan and other cities.

Korea's foreign visitor record and the regional airports

South Korea passed its full-year 2025 record of 18.94 million foreign visitors on Oct. 27, with more than two months of the year left, the Ministry of Culture, Sports and Tourism said. Arrivals from January through September reached 17.11 million, up 21.5% from a year earlier. Mainland China supplied 5.47 million visitors, and arrivals from Japan rose 16.9% to 3.12 million. Card spending by international visitors jumped 47.7% to 15.9 trillion won over the nine months, led by shopping, lodging and medical and wellness services.

At the current pace, about 1.94 million people will arrive in November, taking the annual total past 20 million for the first time in the third week of the month, the ministry said. Its target for the year is 23 million. Culture Minister Chae Hwi-young said inbound tourism "will set a new record every day from now on."

A growing share of those visitors land outside the capital. Data from Korea Airports Corp. show foreign arrivals at regional airports rose about 37% to roughly 3.24 million in the first nine months, outpacing a 17.3% rise at capital-area airports, the Herald reported. Chae said foreign arrivals at Gimhae International Airport in Busan rose nearly 50% in the period, and those at Cheongju International Airport jumped close to 60%.

Policy is pushing in the same direction. More than 80% of foreign visitors still concentrate in the Seoul metropolitan area, which the ministry sees as a limit on growth. Chae warned at a press conference on Oct. 28 that the capital area "will soon be saturated" if current trends continue. The government plans to invest about 410 billion won next year, across ministries and local governments, in "golden routes" built around five regional airports: Gimhae, Daegu, Cheongju, Muan and Yangyang. The 2027 budget proposal also includes 152.3 billion won in loans for large hotels outside Seoul, and the ministry's tourism budget rises 19% to 1.76 trillion won.

There is a catch in the numbers. Korea Tourism Organization data cited by the Herald show the average foreign visitor's stay fell from 7.8 days in 2023 to 6.5 days in 2025, while per capita spending on accommodation dropped 17.8% and restaurant spending fell 16.9%. Chae attributed the decline to more repeat visitors and short weekend trips.

Shinsegae and Lotte split strategy in Busan

In Busan, the country's second-largest city, the two biggest department store groups are taking different routes. Shinsegae announced in late October that it would acquire Lotte Department Store's Centum City branch, which sits next to Shinsegae Centum City in the Haeundae district. Shinsegae Centum City is the top-selling department store outside the capital region, with more than 2 trillion won in annual sales, while the Lotte branch's sales slid from a peak of more than 300 billion won to about 130 billion won by 2023.

Shinsegae plans to link the two buildings with its adjacent mall and an undeveloped plot earmarked for a luxury hotel, offices and residences, a complex it calls "Shinsegae Town." Chief Executive Park Joo-hyung said the company will make it "a global landmark representing Korea." The group has already reported that foreign shoppers drove record third-quarter profit.

Lotte is spreading its bets instead. It will use the sale proceeds to renovate its Seomyeon flagship and invest in Lotte Mall Dongbusan, aim its Gwangbok branch at foreign tourists and keep its Dongnae store for local shoppers. The Seomyeon flagship posted 1.2 trillion won in sales last year, and food and beverage spending there by foreign diners rose 120% from a year earlier between January and October.

Olive Young and Musinsa follow the visitors

Specialty chains are expanding too. CJ Olive Young, the country's leading beauty retailer, is investing 123.8 billion won outside the capital region this year to open or renovate 43 large stores, including a fish market-themed shop in Busan's Millac-dong and a hanok-style store in Gyeongju. At fashion platform Musinsa, foreign cards accounted for about 30% of purchases at its Seomyeon outlet, up 11 percentage points from a year earlier, according to the Herald, and combined sales at its eight stores outside the capital rose about 44%. Ten of its 44 Musinsa Standard stores now sit outside the capital region after a Changwon opening in October.

The next marker is the 20 millionth foreign arrival, which the ministry expects in the third week of November, followed by full-year figures against its 23 million target.