Setting Up Shop in Seoul

Welcome to Setting Up Shop, a series in which we take you around the world to the most dynamic and emerging luxury shopping hubs, introduce you to the customers, and get an understanding of what makes the local market tick.

The taxis traveling along the wide, traffic-filled roads of South Korea’s capital may move at a glacial pace, but everything else in Seoul seems to zoom by. Besides the famously speedy wifi, the city is known for its dynamic music, fashion and beauty scenes, too.

Seoul’s population of 10 million has remained steady since the late ’80s. But recently, the city has become much busier thanks to the soft power boom of Korean culture enticing a record number of tourists to immerse themselves in K-pop and the likes. Tourist arrivals hit an all-time high in July 2025, with 1.36 million people flocking to the capital, up 23.1% year-on-year, per Visit Seoul.

As increased footfall translates to increased spending, brands are catching wind. “Shopping accounts for around 37.8% of tourist expenditure, making Seoul not only a trend incubator, but also a major retail destination for international visitors,” says Nick Bradstreet, head of Asia-Pacific retail at Savills. “The combination of rapid trend adoption and high tourist spending gives Seoul a competitive edge over other fashion capitals in Asia.”

With the luxury slowdown in China still underway, key players are leaning more heavily into Seoul. Louis Vuitton just opened its largest store ever — a six-floor megascape — in The Reserve in Shinsegae Main Store, underscoring LVMH’s commitment to the city. Luxury hospitality is also moving in, with Mandarin Oriental and Rosewood planning hotel openings in the next five years, while bringing more spendthrift tourists with them.

But it’s the cultural platform Seoul offers driving global players to the city. “Seoul stands out in fashion retail because of the powerful influence of K-pop and K-beauty, which drive awareness of local products and elevates them to global fame,” says Bradstreet. “What truly sets Seoul apart is the synergy between its young, trend-savvy consumer base and the worldwide reach of K-culture. Many trends originate here before spreading across Asia, which is why global brands often use Seoul as a testbed.”

For all its luxury firepower, the city is full of quirks and unique challenges, making it rocky territory for brands who show up unprepared. Here’s what to know before setting up shop in Seoul — and how to keep the lights on once you do.

The lowdown

Seoul’s fashion landscape is diverse and immersive, with insider multi-brand spaces, towering department stores, and a constant stream of openings and pop-ups to keep things novel and exciting. The chaebols — Korea’s flock of family-run conglomerates — dominate the department store scene, with Shinsegae, Lotte, Hyundai and Hanwha cementing themselves as the four biggest names. Disruptors are emerging, however, such as e-commerce group Musinsa, as even digital-native brands understand the importance of being in the city.

Through it all, experience is king. The point of having a store in Seoul is not to drive pure sales, but to create immersive flagship experiences that complement their online presence, says Bradstreet. “This shift has concentrated physical retail into high-impact neighborhoods such as Seongsu, Hannam, Dosan Park and Hongdae, where young locals and international visitors cluster,” he adds.

Thriving in Seoul today requires a dynamic approach that is ready to shift in line with consumers’ fickle tastes, while requiring a deep knowledge of the local market. The short-lived residencies of grocery giants Walmart and Carrefour, who couldn’t compete with local retailers, should serve as a warning sign. “It’s not easy, because Korean culture is really unique and the customer is a little picky,” says Jae Lee, a fashion business strategist and professor at Seoul’s Fashion Institute of Technology (FIT). “Brands that come here need to find the right distribution partner, otherwise it will be difficult,” he says, adding that players should factor in a “landing period” of a couple of years to get used to the market.