Oh Woo-seok

Shinsegae's department store business is seeing a powerful turnaround, driven by three tailwinds: (1) strong wealth effect from the Korean stock market rally, boosting domestic luxury spending; (2) a surge in foreign tourist arrivals, especially Chinese visitors, thanks to the weak won; (3) foreigner sales already doubling YoY, with the foreign sales share rising from 1–3% to 7–8% and room to reach 10%. Q2 consensus earnings were upgraded to 170 billion won, and 2026 operating profit is expected to jump 70% YoY to 820 billion won. The stock has rallied 160% YTD, but the structural increase in tourist spending and continued strong same-store sales growth support further upside.