Seoul's shopping malls grow quietly in the shadow of department stores

Seoul's urban shopping malls are posting quiet but steady growth, carving out their own survival strategies alongside department stores that are enjoying an unprecedented boom driven by a surge in foreign tourist arrivals.

IFC Mall in Yeouido said its sales for the first half of this year rose about 11 percent from the same period a year earlier, while visitor numbers climbed 8 percent over the same period. Specific figures were not disclosed, but the mall's revenue has trended upward every year. Sales at its operator, SIFC Retail Mall Development, have also grown — from 41.71 billion won ($30.1 million) in 2020 to the 50 billion won range by 2024. Last year's sales reached 53.88 billion won, up 3.3 percent from 52.15 billion won in 2024.

The growth is notable given IFC Mall's location directly next to Hyundai Seoul, the department store that ranked seventh nationwide last year with sales of 1.29 trillion won. The two venues share an underground transfer corridor connecting Seoul Metro Lines 5 and 9, which funnels large numbers of shoppers to both. When Hyundai Seoul opened in 2021, many in the industry feared the new department store would eat into IFC Mall's sales.

IFC Mall's survival strategy centers on catering to the local office crowd in the Yeouido business district. Its fashion lineup leans toward workwear and everyday staples, with brands such as COS and Musinsa Standard. A wide range of food and beverage outlets serve the lunch and dinner needs of weekday workers, and the first half of this year saw new additions including Momoyu-bu, Olipepe and Kyoto Perfect Matcha. "We have put together a brand mix that covers everything office workers need — from a quick lunch to a light bite and dessert, to gatherings with colleagues and friends," the mall said.

That positioning sets IFC Mall apart from Hyundai Seoul, which targets trend-conscious younger shoppers and foreign tourists. The same logic applies to its pop-up events. The major pop-ups held at IFC Mall in the first half of this year featured Maserati, Cathay Pacific and Dong-A Pharmaceutical's Bacchus — themes likely to resonate with shoppers in their 30s and 40s. In July, the mall hosted a "New-tro Game Festival" filled with nostalgic titles such as Tetris and Bubble Bobble, targeting families with children. "Where Hyundai Seoul competes on flashy pop-ups and luxury brands, IFC Mall's strategy is to fill the gap in between," one industry official said.

Times Square in Yeongdeungpo-gu is taking the opposite approach, raising its profile through pop-ups and events aimed squarely at foreign tourists. The mall has capitalized on its proximity to the Courtyard by Marriott hotel and on the struggles of the nearby Lotte Department Store Yeongdeungpo branch, which has been hampered by aging facilities. Anchor tenants include major domestic and international fast-fashion brands — Zara, H&M, Arket, Musinsa Standard and Musinsa Girls — alongside beauty and lifestyle specialists such as CJ Olive Young, Chicor, Muji and Igu Home. The mall's first-floor atrium, an open event space, has become a well-known venue for pop-ups and idol fan signing events.

According to operator Kyungbang, foreign visitor sales at Times Square rose about 33 percent in May from the same month a year earlier, while overall sales for the same period climbed 21 percent. By nationality and region, based on BC Card transaction data, Chinese shoppers accounted for the largest share at 57.3 percent, followed by Hong Kong at 15.9 percent, the United States at 13.1 percent, Macau at 2.6 percent and Japan at 2.2 percent. Times Square plans to run a Christmas market this year on a larger scale than last year to attract more foreign visitors.

Kyungbang's shopping mall sales are also on the rise. Revenue for the first half of this year reached 113.92 billion won, up about 7 percent from the same period a year earlier. In addition to Times Square, Kyungbang operates EX:T in Hongdae and Times Stream Sillim.