Busan, South Korea – The Busan Duty-Free Shop Yongdusan Branch is defying odds in a struggling industry. Nestled in the iconic Yongdusan Park, the store has achieved a remarkable recovery, boasting a 24% increase in visitors in 2024 compared to the previous year. Even more impressively, its monthly revenue has bounced back to 96% of pre-pandemic levels, a rare feat in South Korea’s embattled duty-free sector.
This success stands in stark contrast to the broader challenges faced by duty-free retailers nationwide. High exchange rates, evolving tourist preferences, and a decline in Chinese group tourism have forced industry leaders like Shinsegae and Lotte to downsize operations. Yet, amid these difficulties, the Yongdusan Branch thrives, a testament to its innovative strategies and local partnerships.
Behind this resilience lies a series of bold changes. The store shifted its focus from high-end luxury goods to affordable, locally inspired products such as Korean ginseng and seaweed. This pivot not only aligned with the preferences of an increasingly diverse tourist base but also reinforced its connection to the local economy.
The shop’s revamped online presence has also been instrumental. Its re-launched internet duty-free platform emphasizes competitive offerings, particularly liquor, a category with high demand among foreign visitors. This focus has allowed the store to carve out a niche in an otherwise competitive landscape dominated by major players.
In addition, the store has embraced collaboration. A partnership with the Songdo Cable Car has introduced joint promotions, such as complimentary tickets for high-spending customers, enhancing the appeal of the overall visitor experience. These efforts have contributed to a steady influx of tourists and solidified its reputation as a must-visit destination.
Yongdusan Park, with its rich cultural and historical significance, has become a dynamic backdrop for innovative events. Visitors have been drawn to unique pop-up installations, including the whimsical “Cookie Run Night Pop-Up” and the family-friendly “Water Magic Kids Night Playground.” These events not only enrich the shopping experience but also highlight Busan’s cultural vibrancy.
The integration of culture technology (CT) has further elevated the park’s status. By reinterpreting its historical narrative through cutting-edge displays, the park now offers a blend of tradition and modernity that resonates with global visitors.
The success of the Yongdusan Branch mirrors the broader resurgence of tourism in Busan. In 2024, the city welcomed 1.38 million foreign visitors, surpassing pre-COVID levels. Tourists from Taiwan, Japan, China, the United States, and the Philippines have flocked to the city, drawn by its unique blend of urban sophistication and natural beauty.
While other duty-free shops in Busan have struggled to attract this growing influx of travelers, the Yongdusan Branch has capitalized on the city’s branding as a global cultural hub. Its success is a model of how businesses can adapt to shifting industry trends while remaining rooted in their local communities.
The Yongdusan Branch is not resting on its laurels as the duty-free industry continues to face headwinds. Plans are underway to diversify its product offerings further and strengthen collaborations with local businesses. These efforts are part of a broader vision to sustain Busan’s momentum as a world-class tourism destination.
Beyond its economic impact, the Yongdusan Branch holds a special place in the hearts of Busan’s residents. Established in 2018 by local entrepreneurs, the shop symbolizes the city’s entrepreneurial spirit and its ability to thrive in the face of adversity. It is not just a retail success but a beacon of what can be achieved through perseverance and community-driven efforts.
