Seoul – Shares in South Korean department stores and casino operators surged this week as the country anticipates a significant influx of Chinese tourists during the extended 2026 Spring Festival, or Chunjie, holiday. The rally is fueled by expectations of increased spending from Chinese visitors, a consequence of Beijing’s informal restrictions on travel to Japan and a weaker Korean won.
As of February 14, 2026, shares of Shinsegae had risen 57.58% since the beginning of the year, according to the Korea Exchange. Hyundai Department Store Group also saw a substantial increase, climbing 29.33% during the same period. Casino stocks followed suit, with Paradise Co. Ltd. Up 20.52% and Lotte Tour Development Co. Ltd. Gaining 11.28%. These companies are widely considered to be key beneficiaries of increased Chinese tourism.
The anticipated surge in Chinese tourists is already reflected in corporate earnings. Shinsegae’s foreign sales in 2025 jumped 90% year-on-year, exceeding 600 billion Korean won for the first time. January 2026 saw foreign sales surpass 90 billion won, marking a record high for the month. Casino operators also reported increased revenue last month, with Lotte Tour Development, Paradise Co., and Grand Korea Leisure Co. Ltd. Experiencing month-over-month net revenue growth of 11.3%, 25%, and 0.8%, respectively.
The 2026 Chunjie holiday, the longest on record at nine days (February 15-23), is expected to bring as many as 190,000 Chinese tourists to South Korea, according to the Korea Tourism Organization. This represents a 44% increase compared to the 2025 Chunjie period. Demand is also expected to extend beyond the official holiday period, as travelers seek to avoid peak congestion and reduce travel costs.
Hotel occupancy rates, particularly at casinos, are nearing full capacity. Average room occupancy at the Paradise City hotel in Incheon is currently at 95% for the Chunjie period. The Grand Hyatt Jeju, home to the Jeju Dream Tower Casino, reports a 98% occupancy rate, effectively sold out.
The shift in tourist flow towards South Korea is directly linked to the Chinese government’s unofficial discouragement of travel to Japan. Following comments by the Japanese Prime Minister in November 2025 regarding potential intervention in Taiwan, Beijing cited security concerns and advised its citizens against traveling to Japan. The number of Chinese tourists visiting Japan in December 2025 plummeted 45.3% year-on-year to 330,000, according to Kim Yu-hyuk, a researcher at IBK Investment Securities.
Conversely, the number of Chinese tourists visiting South Korea increased by 28.4% in December 2025, reaching 390,000 – the highest level in eight years. Kim Yu-hyuk noted that the Chinese government continues to reduce the number of flights to Japan by approximately 50% compared to previous levels and maintains its recommendation against travel to the country. He anticipates that the influx of Chinese tourists to South Korea will accelerate both before and after the Chunjie holiday.
Kim Yu-hyuk of IBK Investment Securities recommends Lotte Tour Development and Paradise Co. As leading investment choices within the casino sector, citing expectations of continued strong performance during the peak season.
