Seoul:<Text>
Duty free sales in South Korea experienced a dramatic decline of nearly 50% last year compared to six years prior, driven by economic factors including the depreciation of the South Korean won and decreased demand from Chinese resellers, as revealed by government data on Friday. Total sales at local duty free stores amounted to 12.5 trillion won (US$8.4 billion) in 2025, marking a significant fall from 2019's 24.8 trillion won.
According to Yonhap News Agency, the Ministry of Finance and Economy reported the steep decline in sales, which had initially fallen to 15.5 trillion won in 2020 and have since remained below the 20 trillion-won threshold. The ongoing slump has prompted the finance ministry to convene a management committee meeting on duty free stores, involving relevant ministries to assess the business conditions.
The government identified several key factors contributing to the sales drop, including the waning strength of the South Kore an won, shifts in consumer behavior, and reduced demand from Chinese resellers. In response, officials have pledged to develop support measures to help the struggling duty free sector adapt to these challenges.
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