In January 2026, Myeongdong, Seoul transformed into a massive laboratory symbolizing a qualitative turning point in South Korea's tourism industry, going beyond a mere commercial district. At this moment, the Korean tourism market, having completed its physical recovery post-pandemic, is shifting from 'quantitative expansion' to 'qualitative advancement'. At the center of this change, Shinsegae Duty Free combines culture, art, and digital technology with the commercial act of shopping, presenting a new dimension of 'hospitality' to foreign tourists visiting Korea. The promotional booth at the Welcome Center on the first floor of Myeongdong N Square has established itself as the 'first shopping gateway' where global tourists encounter the charm of Korea, going beyond a simple information desk.
Myeongdong has long reigned as the center of finance and culture in Korea and the largest tourism special zone in the country. As of the first half of 2025, approximately 4.5 million foreign tourists visited Myeongdong, making it the overwhelming number one in Seoul. The establishment of a promotional booth by Shinsegae Duty Free in Myeongdong N Square is a strategic move to leverage Myeongdong's strong 'gravity' as a marketing force.
This event is particularly significant as it is linked to the '2026 Korea Grand Sale'. Organized by the Ministry of Culture, Sports and Tourism and the Korea Visit Year Committee, this campaign is a key initiative for revitalizing inbound tourism, with a record participation of over 1,750 companies. Through the booth operating from January 29 to 31, Shinsegae Duty Free will inform global customers about shopping benefits and provide an 'omni-channel' experience connecting the Myeongdong store, Incheon Airport store, and online mall.
Shinsegae Duty Free's proactive steps stem from accumulated achievements and confidence. The operating company, Shinsegae DF, was recognized as an outstanding company for the '2025 Korea Grand Sale' and received an award from the Minister of Culture, Sports and Tourism. This recognition from the government acknowledges contributions beyond mere sales increases, including attracting foreign tourists and enhancing the competitiveness of the tourism industry.
During the 2025 event, Shinsegae Duty Free maximized foreign customer satisfaction with effective benefits such as gold membership upgrades and shopping support funds. This 'customer-centric innovation' will continue into 2026, materializing through strengthened on-site touchpoints via the promotional booth and intuitive message delivery using the media facade of the Iconic Zone. As emphasized by Kwak Jong-woo, the marketing head of Shinsegae DF, duty-free shops have now evolved from mere sales channels to content planners designing 'the best shopping experience'.
The Korea Tourism Organization (KTO) has identified 'Dualism' as a key trend for tourism in 2026. This phenomenon coexists technology and emotion, luxury and practicality, global and local. The Myeongdong project by Shinsegae Duty Free is a prime example of proactively reflecting this trend.
This strategy synergizes with the market environment of surpassing 18.5 million inbound tourists by the end of 2025. Tourists now seek to experience Korea's aesthetic sense and consume lifestyles, going beyond simple purchases in Myeongdong.
The landscape of duty-free shopping is also rapidly changing. The past consumption patterns centered around cosmetics and alcohol have expanded to include 'experience-based content' such as food and high-performance beauty devices. The food curation zone 'Taste of Shinsegae' achieved a remarkable 30-fold increase in sales within just six months of opening, proving this shift.
Notably, the success of domestic small and medium-sized brands like Brick Sand and Osulloc stands out. These brands have gained significant popularity among foreign customers in their 2030s, becoming best-selling items. The fact that the cross-purchase ratio of food and other category products has increased tenfold shows that K-food is playing a new 'anchor' role in duty-free shopping.
The rise of the premium beauty device brand 'Dual Sonic' is also noteworthy. The 'Dual Sonic Optimum', launched exclusively in the duty-free industry, recorded a growth rate of 110% within six months, primarily among the 30-40 age group. This indicates that K-beauty is evolving into a high-value-added industry known as 'beauty tech', beyond just cosmetics.
The 10th floor of Shinsegae Duty Free Myeongdong, the 'Iconic Zone', is a key space that leaves a strong visual impression on foreign tourists. The media facade here is a high-resolution digital canvas that modernly reinterprets Art Deco style and traditional Korean mother-of-pearl. Shinsegae utilizes this space not merely as an advertising board but as a platform for producing artistic discourse.
The recent media art exhibition 'Again, Earth: Responding with Different Senses', in collaboration with the Seoul Museum of Art (SeMA), reached its pinnacle. This exhibition, addressing the climate crisis and the Anthropocene, throws social messages in a shopping-centric space, elevating Shinsegae Duty Free's brand value to that of a 'cultural arts platform'.
Particularly, the production of sign language exhibition videos for the hearing impaired has been praised for enhancing the accessibility and inclusivity of cultural and artistic content. This is a model case of combining ESG values, which are central to corporate management in 2026, with tourism content.
The duty-free industry environment in 2026 is challenging. The high exchange rate of around 1,480 won weakens price competitiveness. However, the 'base effect' and 'domestic recovery' are expected to provide opportunities for a rebound. With policy support and efforts to improve profitability through the suspension of operations in the Incheon Airport DF2 area, an annual operating loss improvement of about 100 billion won is anticipated.
In this environment, Shinsegae Duty Free is showing differentiated steps from its competitors. While Lotte Duty Free focuses on entertainment marketing, Shinsegae is maximizing the 'cultural premium' that Myeongdong offers to capture high-value customers.
Government support for tourism infrastructure also strengthens this effort. Extensions of K-ETA temporary exemptions, K-culture training visas, and the activation of digital nomad visas promote the influx of high-income foreigners.
The promotional booth at the Shinsegae Duty Free Myeongdong Welcome Center is the first space of 'hospitality' that tourists benefiting from these policy advantages encounter. Here, they can experience K-local programs based on the information obtained and return to the duty-free shop to purchase products, forming a 'virtuous cycle'.
Shinsegae Duty Free meeting global tourists in Myeongdong is not merely a promotion but a symbolic performance for the 'qualitative leap' of the Korean tourism industry in 2026. The encounters that begin at the Myeongdong N Square promotional booth lead to artistic experiences in the Iconic Zone and are completed with the convenience of the omni-channel.
Not resting on past accolades such as the Minister's Award, Shinsegae Duty Free's strategy of continuously attempting to 'tourism content-ize shopping spaces' precisely penetrates the values sought by inbound tourists in 2026. Even amidst the high exchange rate wave, Shinsegae Duty Free is writing a new grammar for South Korea's tourism industry by combining the locality of Myeongdong with the narrative of K-culture.
For global tourists visiting Myeongdong, Shinsegae Duty Free will now be remembered not just as a shopping space but as a 'cultural gateway' where they encounter Korea's aesthetic sense, social messages, and cutting-edge lifestyles. In 2026, we hope that this small promotional booth launched by Shinsegae will become a massive signal for the renaissance of South Korea's tourism industry.
