The South Korea Retail Sector Market is Segmented by Retail Channel (E-Commerce / Online-Only, Omni-Channel Retailers, and Others), Product Category (Grocery & Food, Fashion & Apparel, and More), Payment Method (Credit Cards, Debit Cards, and More), and Region (Seoul Capital Area, Chungcheong Region, and More). The Market Forecasts are Provided in Terms of Value (USD).

The South Korean retail market halted its growth in 2024, after reaching a new peak value each prior year, despite the ongoing inflation. In line with the growth to over 640 trillion South Korean won, the average household expenditure continued to rise during the last few years. South Korea is known for being technologically advanced and these technological changes affect the retail landscape. Offline retail Shopping in brick-and-mortar stores is still a fixed component in most South Korean consumers’ life. Convenience stores especially, are the target of daily on-the-go visits for many in their busy schedules due to easy access. On the other hand, department stores, which were a key retailer during the economic boom in the 1980s, offer a slower, more luxurious shopping experience. Nonetheless, the vacancy rates in some of Seoul’s most well-known shopping districts, remain high. Online retail The ongoing growth of the retail market can largely be attributed to the high online sales growth. For years, e-retail has dominated the market and continues to grow. Among South Korean consumers, who value convenience and are very well-connected to the internet, the large majority shops online. More and more retailers embrace the shift and utilize technology to combine on- and offline retail, in the form of shopping apps, crewless stores and more.

Discover the booming South Korean retail market! This in-depth analysis reveals a $553.92 million market in 2025, projected to grow at a CAGR of 5.68% until 2033. Explore key drivers, trends, and challenges impacting online and offline retail in South Korea, including major players like Lotte Mart and E-Mart. Recent developments include: September 2023: Lotte Mart, a South Korean supermarket retail store chain, announced that it will create a unique shopping zone for non-Korean tourists at its stores that travelers and tourists frequently visit., June 2023: US Burger Chain Five Guys opened its first store in Seoul's Seocho District. Located on Gangnam-aero Road between Gangnam and Sinnonhyeon subway stations, the branch includes two floors and an area of 588 sq m. Five Guys will also offer the same food quality in South Korea as in America, with no localized items for the domestic market.. Key drivers for this market are: Growing Tourism in South Korea, Growing Awareness About Healthy Lifestyle Products. Potential restraints include: Growing Tourism in South Korea, Growing Awareness About Healthy Lifestyle Products. Notable trends are: Growing E-Commerce is Driving the Retail Market in South Korea.

The South Korean retail sector, valued at $553.92 million in 2025, is projected to experience robust growth, driven by a rising disposable income, increasing urbanization, and the expanding e-commerce landscape. A Compound Annual Growth Rate (CAGR) of 5.68% from 2025 to 2033 indicates a significant market expansion. Key drivers include the increasing adoption of omnichannel strategies by major retailers like Lotte Mart and E-Mart, catering to evolving consumer preferences for seamless online and offline shopping experiences. The rising popularity of convenience stores like 7-Eleven and the entry of international players like Costco further fuel market competition and growth. Segments like food, beverage, and tobacco products, alongside personal care and household goods, are expected to dominate market share, reflecting strong consumer demand. However, challenges remain, including intensifying competition, fluctuating consumer spending patterns influenced by economic factors, and the need for retailers to adapt to changing technological advancements and consumer expectations in the face of ongoing global uncertainties. The forecast period (2025-2033) promises continued expansion, with the online segment expected to witness particularly strong growth fuelled by the widespread adoption of smartphones and high-speed internet. While the offline segment, encompassing department stores and hypermarkets, will retain significant market share, it will need to integrate digital technologies to remain competitive. The success of retailers will depend on their ability to effectively manage supply chains, personalize customer experiences, and leverage data analytics to optimize operations and marketing strategies. Expansion into niche markets, such as luxury goods and specialized products, offers promising avenues for growth. The competitive landscape, with established players like Shinsegae Department Co Ltd and emerging brands, necessitates ongoing innovation and strategic adaptations to maintain market share and profitability. Recent developments include: September 2023: Lotte Mart, a South Korean supermarket retail store chain, announced that it will create a unique shopping zone for non-Korean tourists at its stores that travelers and tourists frequently visit., June 2023: US Burger Chain Five Guys opened its first store in Seoul's Seocho District. Located on Gangnam-aero Road between Gangnam and Sinnonhyeon subway stations, the branch includes two floors and an area of 588 sq m. Five Guys will also offer the same food quality in South Korea as in America, with no localized items for the domestic market.. Key drivers for this market are: Growing Tourism in South Korea, Growing Awareness About Healthy Lifestyle Products. Potential restraints include: Growing Tourism in South Korea, Growing Awareness About Healthy Lifestyle Products. Notable trends are: Growing E-Commerce is Driving the Retail Market in South Korea.

The South Korea retail market size was approximately USD 501.12 Billion in 2024. The market is assessed to grow at a CAGR of 4.40% between 2025 and 2034, reaching a value of USD 770.81 Billion by 2034.

South Korea Retail Sector market size was valued at USD 423.6 Billion in 2024 and is projected to reach USD 628.4 Billion by 2031, growing at a CAGR of 5.1% from 2024 to 2031.

South Korea Retail Sector Market Drivers

Rapid Growth of E-commerce and Digital Transformation: South Korea's robust internet infrastructure and high smartphone penetration have contributed greatly to e-commerce growth. In 2022, internet retail sales represented 35% of overall retail sales in the country, ranking among the highest in the world. Furthermore, e-commerce revenue is predicted to reach $114 billion by 2025, thanks to creative online-to-offline methods and strong logistical networks.

Rising Urbanization and Consumer Spending Power: With nearly 81.4% of the population residing in cities by 2023, South Korea has a concentrated consumer base with significant purchasing power. Urban families are increasingly spending on luxury and convenience products, contributing to a 4.2% yearly increase in retail sales, according to OECD estimates.

Government Initiatives Supporting Retail Modernization: The South Korean government is actively promoting smart retail technologies through initiatives such as the Digital New Deal. These measures are intended to automate conventional marketplaces and support retail technology firms. Over 5,000 small retail shops will have smart payment systems installed by 2023, thanks to government-backed schemes.

In 2024, retail sales in South Korea grew by 8.2 percent compared to the previous year. Online retail sales recorded about 15 percent of the growth that year, while offline retail sales also continued to record only small growth rates during the last years. Retail channels Online retail spearheads the retail market and due to COVID-19 the popularity of online retailing was accelerated, leading to a major increase in online retail sales in 2020. At the same time, offline retail suffered from social distancing measures and afterward, the want for convenience. However, in retail sales showed growth in both categories, likely due to pent-up demand. Department stores are one offline retail channel that still flourish and try to bring innovation to the offline retail market in the shape of pop-up stores. Most popular items The product group with the highest share in retail sales was food and groceries, making up for over a third of sales. As with other consumer goods, shopping for groceries online has become a trend. Other popular product groups were services and living or family related expenses. For example, the expenses for home appliances online have grown.

The South Korea Travel Retail Market Report is Segmented by Product Type (Fashion and Accessories, Wine and Spirits, Tobacco, and More), Distribution Channel (Airports, Cruise Liners, and More), Traveler Demographics (Business Travelers, Leisure Travelers, and More), and Geography (Seoul Capital Region, Jeju Island, Busan & Southeastern Region, Other Regions). The Market Forecasts are Provided in Terms of Value (USD).

According to a survey among retailers in South Korea, online shopping was expected to have the highest growth among retail channels in 2025. At an expected *** percent, it was expected to grow more than double compared to hypermarkets.

Retail Sales in South Korea increased 3.50 percent in October of 2025 over the previous month. This dataset provides the latest reported value for - South Korea Retail Sales MoM - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

The South Korea travel retail market, valued at $12.6 billion in 2025, exhibits robust growth potential, projected to expand at a Compound Annual Growth Rate (CAGR) exceeding 5% from 2025 to 2033. This expansion is driven by several key factors. Firstly, South Korea's increasing popularity as a tourist destination fuels demand for duty-free goods. The rise of affluent Chinese and other Asian tourists significantly contributes to this growth. Secondly, the strategic expansion and modernization of airport infrastructure and duty-free shops enhance the shopping experience, attracting more consumers. Finally, innovative marketing strategies employed by major players like Lotte Duty Free and The Shilla Duty Free, along with the introduction of new product lines in beauty, personal care, and luxury goods cater to evolving consumer preferences. The market is segmented by product type (beauty and personal care dominating), and distribution channels (airports holding the largest share). However, challenges exist, including fluctuating global economic conditions and potential shifts in tourist patterns impacting overall market performance. Despite these challenges, the South Korean travel retail sector demonstrates significant resilience. The consistent high CAGR reflects the enduring appeal of duty-free shopping and the country's commitment to developing its tourism industry. The diverse product offerings across various segments ensure a broad consumer base. Competition among major players drives innovation and keeps prices competitive, benefiting consumers. While economic uncertainty poses a risk, strategic partnerships and diversification efforts by operators help mitigate these factors. The future outlook remains positive, with continued expansion expected across all major segments, further consolidating South Korea's position as a leading travel retail market in Asia. This comprehensive report provides an in-depth analysis of the dynamic South Korea travel retail market, encompassing the period from 2019 to 2033. It offers invaluable insights for businesses seeking to understand the market's characteristics, trends, and future growth potential. With a focus on key players like Lotte Duty Free, The Shilla Duty Free, and Shinsegae Duty Free, this report utilizes data from the base year 2025 and forecasts up to 2033, providing a clear picture of this multi-billion dollar industry. Recent developments include: July 2022: Dufry AG, the world’s largest duty-free operator, acquired Autogrill SpA, the motorway and airport catering company, from the Benetton Family., April 2022: South Korea Lotte Duty Free has partnered with Korean Seven, the operator of the 7-Eleven convenience store chain, to expand local market sales of so-called domestic customs-cleared duty-free goods.. Key drivers for this market are: Beauty Products, Jewellery, Fashion and Accessories are Faster Developing Segments in the Market. Potential restraints include: Beauty Products, Jewellery, Fashion and Accessories are Faster Developing Segments in the Market. Notable trends are: Growing Disposable Income is Driving the Market.

In 2024, the food sector accounted for the largest share of the total retail sales in South Korea. During the measured period, the share of food retail sales took up around **** percent, followed by the service and fashion sector with **** and **** percent respectively. Food shopping behavior Food takes up the largest percentage of sales in retail and the sales are steadily increasing. The average monthly spending on food and soft drinks amounted to around ******* South Korean won. Koreans mostly buy their groceries in large supermarkets, such as e-mart, Hanaro Mart, and Costco. Rising popularity of online grocery shopping Online shopping has become increasingly popular over the years. This trend can also be seen in the food sector, as a lot of people choose to shop for groceries online at least once every two weeks or once a month. One of the reasons for shopping for groceries online was the quick delivery. This is especially convenient for people who have little time due to work or who do not have supermarkets nearby.

Retail Sector Market Outlook

According to our latest research, the global retail sector market size reached USD 28.3 trillion in 2024, driven by robust consumer demand, digital transformation, and evolving shopping behaviors. The market is poised to grow at a CAGR of 5.7% from 2025 to 2033, reaching an estimated USD 46.9 trillion by 2033. This expansion is underpinned by significant investments in omnichannel strategies, rapid e-commerce penetration, and the increasing adoption of advanced retail technologies worldwide.

One of the primary growth factors fueling the retail sector market is the accelerated shift toward digitalization and the integration of cutting-edge technologies. Retailers are leveraging artificial intelligence, machine learning, and data analytics to enhance customer experiences, streamline operations, and personalize marketing efforts. The proliferation of smartphones and increased internet penetration have made online shopping more accessible, prompting even traditional brick-and-mortar retailers to invest heavily in digital platforms. Additionally, the adoption of contactless payment systems and advanced inventory management solutions has played a crucial role in improving operational efficiency and customer satisfaction, further propelling market growth.

Another significant growth driver is the evolution of consumer preferences and the rising demand for convenience and personalization. Modern consumers are increasingly seeking seamless, flexible, and personalized shopping experiences, both online and offline. Retailers are responding by offering a wider range of products, implementing omnichannel retail strategies, and enhancing last-mile delivery services. The growing popularity of subscription services, click-and-collect models, and same-day delivery options exemplifies this shift. Furthermore, the expansion of emerging product categories such as health and wellness, sustainable goods, and smart home devices has contributed to the diversification and growth of the retail sector market.

Globalization and the expansion of retail infrastructure in emerging economies have also played a pivotal role in driving market growth. Countries across Asia Pacific, Latin America, and the Middle East & Africa are witnessing rapid urbanization, rising disposable incomes, and an expanding middle class. These factors have led to increased consumer spending and heightened demand for diverse retail products and services. Multinational retailers are entering these markets through strategic partnerships, acquisitions, and franchise models, capitalizing on the untapped potential and contributing to the overall growth trajectory of the global retail sector.

Connected Retail is transforming the way businesses interact with consumers by seamlessly integrating online and offline channels. This approach ensures that customers enjoy a consistent shopping experience, whether they are browsing products online or visiting a physical store. By leveraging data analytics and real-time inventory management, retailers can offer personalized recommendations and ensure product availability across all platforms. This not only enhances customer satisfaction but also drives sales by providing a more engaging and convenient shopping journey. As the retail landscape continues to evolve, Connected Retail is becoming a crucial strategy for businesses aiming to stay competitive and meet the ever-changing expectations of modern consumers.

Regionally, Asia Pacific continues to dominate the global retail sector market, accounting for the largest share in 2024, driven by the robust growth of economies such as China, India, and Southeast Asian countries. North America and Europe remain mature and highly competitive markets, characterized by advanced retail infrastructure and high consumer spending. Meanwhile, Latin America and the Middle East & Africa are emerging as lucrative markets, supported by favorable demographic trends and increasing digital adoption. The regional outlook for the retail sector market remains optimistic, with all regions expected to contribute significantly to overall market expansion through 2033.

This statistic displays the retail market size in South Korea in 2017, sorted by product group. In 2017, the size of the food and beverage sector in the South Korean retail market amounted to ****** trillion South Korean won, whereas clothes market was around ***** trillion South Korean won.

In 2024, online retailing was leading the South Korean retailing market with its share of **** percent. That year, the sales of offline shopping channels decreased, while that of online retailers slightly increased compared to the previous year.

The South Korea travel retail market value reached around USD 12.06 Billion in 2024 due to the resurgence of international tourism, particularly from countries like China and Japan, which has significantly boosted travel retail sales. In 2023, South Korea experienced a 40% increase in Chinese tourists, which has enhanced duty-free shopping opportunities at major airports like Incheon, where duty-free sales rose by 25% in the first half of the year. Additionally, the growing purchasing power of travellers, fuelled by improved living standards and increased disposable income, encourages spending on luxury items and exclusive products. As a result, the industry is expected to grow at a CAGR of 5.20% during the forecast period of 2025-2034 to attain a value of USD 20.02 Billion by 2034. Also, the global popularity of K-pop and Korean beauty products continues to attract both international tourists and local consumers, further propelling market growth.

Korea Retail Sales: Major Department Stores: Purchase Amount per Customer data was reported at 5.800 % in Sep 2018. This records an increase from the previous number of 1.600 % for Aug 2018. Korea Retail Sales: Major Department Stores: Purchase Amount per Customer data is updated monthly, averaging 0.900 % from Feb 2003 (Median) to Sep 2018, with 186 observations. The data reached an all-time high of 15.300 % in Jan 2006 and a record low of -8.900 % in Aug 2015. Korea Retail Sales: Major Department Stores: Purchase Amount per Customer data remains active status in CEIC and is reported by Ministry of Trade, Industry and Energy. The data is categorized under Global Database’s Korea – Table KR.H019: Retail Sales: YoY%.

Korea Retail Sales: Major Department Stores: Food data was reported at -5.200 % in Oct 2018. This records a decrease from the previous number of 6.700 % for Sep 2018. Korea Retail Sales: Major Department Stores: Food data is updated monthly, averaging 3.300 % from Feb 2003 (Median) to Oct 2018, with 189 observations. The data reached an all-time high of 89.800 % in Feb 2007 and a record low of -50.700 % in Feb 2003. Korea Retail Sales: Major Department Stores: Food data remains active status in CEIC and is reported by Ministry of Trade, Industry and Energy. The data is categorized under Global Database’s South Korea – Table KR.H019: Retail Sales: YoY%.

Retail Sales Index: sa: Specialized Retailer data was reported at 102.300 2020=100 in Oct 2025. This records an increase from the previous number of 100.600 2020=100 for Sep 2025. Retail Sales Index: sa: Specialized Retailer data is updated monthly, averaging 118.800 2020=100 from Jan 2005 (Median) to Oct 2025, with 250 observations. The data reached an all-time high of 130.000 2020=100 in Jun 2011 and a record low of 87.400 2020=100 in Mar 2020. Retail Sales Index: sa: Specialized Retailer data remains active status in CEIC and is reported by Statistics Korea. The data is categorized under Global Database’s South Korea – Table KR.H: Retail Sales Index: 2020=100: by Business Type.

Korea Retail Sales: Major Department Stores: Number of Customers Purchase Good data was reported at -4.300 % in Oct 2018. This records a decrease from the previous number of -1.000 % for Sep 2018. Korea Retail Sales: Major Department Stores: Number of Customers Purchase Good data is updated monthly, averaging 0.800 % from Feb 2003 (Median) to Oct 2018, with 187 observations. The data reached an all-time high of 14.200 % in Jun 2016 and a record low of -9.100 % in Jun 2015. Korea Retail Sales: Major Department Stores: Number of Customers Purchase Good data remains active status in CEIC and is reported by Ministry of Trade, Industry and Energy. The data is categorized under Global Database’s South Korea – Table KR.H019: Retail Sales: YoY%.