Written by 11:47 AM Economics

1 million Chinese tourists flocking to South Korea… Tourism and retail industries busy preparing for ‘big spenders’

China allows group tourists to visit without a visa for 15 days starting from the 29th

Expectations for a year-end boost increase… intensifying marketing towards Chinese-speaking territories

With the impending visa-free entry for Chinese group tourists starting tomorrow, the tourism and retail industries are buzzing with anticipation due to the expected benefits. According to the Tourism Board on the 28th, from the 29th until June 30, 2026, Chinese group tourists who are brought in by domestic or international travel agencies can tour the country visa-free for 15 days. In Jeju Island, both individual and group tourists will continue to enjoy a 30-day visa-free policy as before.

This initiative is part of a policy to promote tourism to Korea, with expectations that around 1 million more Chinese tourists might visit during the visa-free period. Given that this policy begins just before China’s major holiday, the National Day (October 1-7), which commemorates the founding of the People’s Republic of China in 1949, there are projections that a large number of Chinese tourists will visit Korea next month.

In October of last year, 392,000 Chinese tourists visited Korea, about 69% of the number recorded in October 2019, before the COVID-19 pandemic. Recent trends show that the number of tourists visiting Korea is returning to pre-pandemic levels. In July, around 602,000 Chinese tourists visited.

Year-End to First Half of Next Year Likely to See an Increase in Tourists

There is a prediction in the market that while it might be difficult to immediately see the impact in the initial month of visa-free entry, there will be a continuous increase in tourists visiting Korea towards the end of the year. Consequently, the tourism and distribution industries are strengthening their marketing efforts towards the Chinese-speaking market to attract Chinese group tourists for the end of this year and the first half of next year.

Resorts that are popular among Chinese tourists are ramping up their marketing. Paradise Hotel is selling packages that include music festival tickets, Cimer, and Wonderbox access to Chinese-speaking customers through online travel agencies. Jeju’s Dream Tower Integrated Resort is offering discounts in dining establishments and spas through a WeChat Pay promotion.

Shilla Duty-Free has attracted passengers of the large cruise ship Tianjin Dongfang International Cruise’s ‘Dream’ on its first day of visa-free entry (the 29th) docking at Incheon Port. Shilla Duty-Free provides them with gifts and discounts of up to 60% on cosmetic brands popular with Chinese tourists.

Lotte Duty-Free is resuming transactions with Daigou (Chinese personal shoppers) after a pause, with sales since June now constituting about 10% of total sales over the past three months. Shinsegae Duty-Free gives foreign shopping customers ‘Fortune Bags’ designed with the character ‘福’ (fortune) and provides WeChat Pay cashback for groups of three or more customers, along with food delivery coupons from a partnership with Wow Korea.

Lotte Department Store is giving keychains and string bags to Chinese customers at its main store, ‘Kinetic Ground.’ GS25 is planning discounts and giveaway events targeting Chinese customers using Alipay during China’s Golden Week and other times. AmorePacific plans to open two ‘Sulwhasoo Pop-up Stores’ at Incheon International Airport Duty-Free in early next month, and LG Household & Health Care is creating brochures tailored for Chinese tourists and promotions with benefits based on purchase amounts.

CJ Olive Young is increasing the number of foreign-language-speaking staff in stores nationwide and has introduced terminals for instant VAT refunds.

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