Shinsegae built its Busan duty-free store on tour groups — and handed it back

Shinsegae Group entered duty-free in Busan in 2012 by acquiring the Paradise Hotel's store, and in 2016 expanded it into the Shinsegae Centum City department store with 30% more floor area — a bet on Chinese tour groups shopping luxury goods in Korea's second city. At its peak the store carried Rolex, Ferragamo, Bulgari and Burberry.

After the pandemic, the customers the expansion was sized for did not come back in the same form: arrivals stayed down, the won weakened, and travel spending changed shape. By November 2024 the store had lost enough brands to shrink its selling area by 25%, ran a voluntary retirement programme and suspended weekend opening — operating losses at the operator hit ₩37.4 billion for 2024.

On 12 January 2025 Shinsegae DF announced it had negotiated with customs to return the Busan patent — valid until 2026 — and the store closed on 24 January. The company said continued operation had become impossible as the cycle of falling customers and falling sales fed itself.