CJ Olive Young's regional hub store strategy is sailing smoothly. It helped that foreign tourists visiting Korea are expanding the way they travel, not staying only in Seoul but seeking out places across the regions for things like "one-month stays."
On the 17th, according to tax refund operator Global Tax Free, the growth rate of foreign sales at CJ Olive Young's non-capital area hub stores was mostly high last year. The Olive Young store in Jeonju recorded a 150% year-over-year growth rate in foreign sales, the Cheongju store 130%, and the Gwangju store 111%. They were followed by Busan (83%), Cheonan (59%), and Daegu (30%) in order of growth rate.
This is thanks to a change in how foreigners travel in Korea. Like Koreans heading to small-town destinations in Japan, more foreign visitors to Korea are seeking out regional cities beyond Seoul. According to the Ministry of Culture, Sports and Tourism and the Korea Tourism Organization (KTO), the "foreign regional visit rate," which is the share of inbound foreigners who visited areas outside Seoul, was 34.5% in the first quarter of this year, up 3.2 percentage points (p) from the same period last year.
More foreigners are entering the country through regional airports rather than Incheon Airport altogether. In the first quarter of this year, foreign arrivals at regional airports totaled 853,905, up 49.7% from the same period last year. Airports with a high share of foreign arrivals were Jeju Airport (50.38%) and Busan's Gimhae Airport (37.8%) in that order.
Olive Young focused on expanding regional hub stores into large formats to create locations that attract foreign tourists visiting areas outside Seoul. Olive Young hub stores in Busan, Daejeon, and Gangneung are large stores averaging 200 pyeong in floor space. To cement their role as tourism infrastructure that attracts visitors, they also strengthened experiential services. A representative example is professional beauty diagnostics.
A person in the beauty industry said, "More tourists want to enjoy experiential content to put on makeup like Koreans," adding, "At Olive Young, they can have these experiences and also buy K-beauty products, so it's becoming a place they include on their itineraries while traveling."
They also added distinctive touches to interiors. The Gyeongju Hwangnam store, which opened in 2024, features an exterior that resembles a hanok, and the Jeju Yongdam store, which opened last year, is decorated with Dol Hareubang motifs. Specialty goods that reflect regional characteristics are also a draw.
Through its PB (private brand) Round Around, Olive Young has offered products such as lip balm and hand cream using Jeju tangerines since 2023. The Gangneung store sells fragrances themed on coffee and pine trees, while in Busan's Haeundae and Gwangalli it sells snacks inspired by seed hotteok. These items are not available online and are sold only at the respective regional stores.
As regional hub stores gained traction faster than internal estimates, Olive Young also plans to increase additional regional hiring depending on business performance. Olive Young plans to hire about 600 new employees this year in non-capital areas alone. An Olive Young official said, "Beyond simple hiring, we plan to accelerate building a growth ladder that enables young people to grow into beauty and wellness experts."