"Must-Buy in Korea": Foreign Visitors Flock to Olive Young, Overseas Purchases Reach 1 Trillion Won This Year

26-Fold Growth Compared to 2022 Annual Results
Expansion Beyond Metropolitan Areas and Increase in Brands Purchased

On December 3, CJ Olive Young announced that the cumulative purchase amount by foreign visitors to Korea at its offline stores nationwide reached 1 trillion won from January to November this year.

This figure is approximately 26 times larger than the annual performance in 2022, following the endemic (periodic transition of infectious diseases). The proportion of foreign sales, which stood at about 2% of total offline sales at that time, entered the 10% range for the first time in 2023 and surpassed 25% for the first time this year.

Olive Young N Seongsu Store. Provided by CJ Olive Young

During this period, 88% of domestic cosmetics transactions processed through Global Tax Free (GTF) were recorded at Olive Young stores. In simple terms, 9 out of 10 foreign customers purchasing cosmetics in Korea chose Olive Young. The number of nationalities of foreigners who received tax refunds at the stores reached 190, based on the United Nations (UN) member states.

According to the report released by Olive Young on the same day, "K-Beauty: Revisited Through the Eyes of Foreign Visitors to Korea," about 40% of foreign customers who made purchases at Olive Young this year visited more than two stores. From January to October this year, the number of purchases by foreigners in non-metropolitan areas increased 86.8 times compared to 2022, far exceeding the growth in the metropolitan area (20.5 times). Jeju showed the most remarkable growth (199.5 times), and most major local governments, including Gwangju (71.6 times), Busan (59.1 times), and Gangwon (57.9 times), also saw a significant expansion in foreign shopping demand.

Additionally, more than half (58%) of foreign visitors to Olive Young stores purchased six or more brands, while 33% of all customers bought more than ten brands.

In November 2023, Olive Young began a full-scale overhaul of its stores and services for foreign tourists by reopening its global flagship store, "Olive Young Myeongdong Town." Considering the growing tourism demand in non-metropolitan areas, the company also opened specialized stores such as Gyeongju Hwangnam and Jeju Hamdeok, maximizing the appeal of local commercial districts. As of last month, the number of global tourism district stores stood at 135, more than double the 60 stores from the previous year.

An Olive Young representative stated, "Achieving 1 trillion won in purchases by foreign visitors is especially meaningful as it represents a joint accomplishment of small and indie brands meeting global customers through Olive Young," adding, "We will do our best to ensure that K-beauty becomes not just a trend, but the reason people return to Korea and a core element of inbound tourism."