"40% Returns" Promised on Caravan Campsite Investment... Only Weeds Remain

[Anchor]

As the number of tourists visiting Korea increases and the stock market thrives, domestic department stores have seen a significant surge in sales. However, sales at large discount stores have actually declined, highlighting a growing polarization in consumption.

Shim Woo-seop reports.

[Reporter]

A duty-free shop inside a department store last weekend.

Cosmetic and clothing stores are packed with foreign tourists, including those from China.

The K-beauty craze and the weak Korean won have played a role.

[Yang Jiaye & Wu Shuying / Chinese Tourists: Usually, when we come to Korea, we buy cosmetics or skincare products, and they are definitely cheaper than in China. Korea also has a good shopping environment and purchasing experience.]

Long lines have formed in front of luxury brand stores with domestic customers.

Stores selling watches and jewelry worth tens of millions of won are much busier than usual.

[Department Store Customer: I think more people are shopping because stocks have gone up a lot. (Around me) there are many people who own Samsung Electronics. And Hynix, too.]

The three major department store chains recorded their highest-ever revenue in the first quarter, and sales in April also increased by over 20% compared to a year ago.

In particular, sales of imported high-end brands and luxury goods surged by more than 38%.

This is due to a combination of a sharp increase in foreign tourists, the so-called "wealth effect" from rising asset prices such as stocks, and increased income in the semiconductor industry.

However, not everyone in the retail industry is smiling.

Large discount stores and supermarkets, which are mainly used by ordinary citizens, are struggling to escape a slump.

While the expansion of online shopping has had a major impact, analysts suggest that consumers are increasingly reducing the number and quantity of items they purchase due to the burden of inflation.

There is also criticism that the domestic demand recovery driven by semiconductor-led economic growth and the stock market boom is an "illusion" created by a "concentration on premium consumption."

[Cho Sang-hoon / Research Fellow at Shinhan Securities: In fact, department stores have a very strong nature of purposeful purchasing. It appears that the "trickle-down effect," where this "wealth effect" leads to overall consumption, has not yet reached large discount stores.]

There are growing concerns that if the burden of household spending on daily necessities increases due to high inflation, and instability in oil prices and exchange rates continues, consumer sentiment could shrink even faster in the second half of this year.

Reported by Shim Woo-seop | Video Editing: Kim Jong-tae | VJ: Jung Han-wook | Graphics: Seo Seung-hyun
※ Please note: This article was translated by AI and may contain errors.