A new class of foreign consumers is emerging in Korea. The foreign population in Korea has grown, and it has been spending more due to the weakness of the Korean won against the U.S. dollar.

According to a 2008 survey conducted by the Ministry of Public Administration and Security, around 890,000 foreigners were residing in Korea beyond 90 days, the equivalent of 2 percent of Korea's population. As a result, department stores and other outlets, as well as Internet shopping sites, are out to lure these foreign consumers.

◆ Foreign Consumers Open Their Wallets

Department stores are taking the most aggressive measures to lure foreigners. The won's recent sharp weakening against the dollar has seen purchases of luxury products by American and European expats rise more than 70 percent during the last six months. An official at Yongsan I'PARK mall said foreigners accounted for seven percent of the store's 600,000 weekend customers between October and December of last year, more than double the number of 2007. He said 60 percent of those foreign customers were residing in Korea for more than six months.

Stores are employing a variety of measures to lure more foreign customers. In order to improve communication, Hyundai Department Store recently placed four fluent Japanese speakers, 31 English speakers and one German speaking worker at its stores. Galleria Department Store also boosted the number of interpreters from 5 last year to 18 this year. These "shopping helpers" are sales staff fluent in languages other than Korean, such as English, Japanese, Chinese, French and Italian.

◆ Foreign Consumers Spend Online

Foreign consumers are also spending online. In the case of cyber shopping mall, "11ST," the number of foreigners signing up for membership rose 30-fold in November of last year, compared to the first half of 2008, while sales rose more than 150 percent. Foreign customers have been boosting spending on that site since September, when the won began weakening drastically against the dollar.

An Internet shopping mall called "BuyTheKorea" opened in July of last year dedicated to foreign customers. Aiming to solve the difficulties foreigners face when buying products in Korea, it sells a wide range of products, from home appliances to cellphone activation. All products carry instructions on delivery procedures and product information in English, while membership does not require a Korean citizen's ID number and payments can be made using foreign credit cards.