[Edaily Reporter Kyung Gye-young] As the semiconductor industry enjoys a boom, the warmth is spreading to department stores in southern Gyeonggi Province, where Samsung Electronics and SK Hynix have their facilities. This is because employees of Samsung Electronics and SK Hynix are expected to receive large performance bonuses, leading to increased luxury spending. Department stores are also stepping up efforts to attract these newly emerged semiconductor “big spenders” by strengthening their premium brand offerings and revamping their membership programs.

According to industry sources on the 4th, sales at the Shinsegae South City Jukjeon branch increased by 16.2% year-on-year last month. In particular, sales in the luxury jewelry and watch categories surged by 120% and 60%, respectively. This growth rate significantly outpaces the average increase in luxury jewelry (80%) and watch (44%) sales across all Shinsegae Department Store branches. Shinsegae explained that brands such as Bulgari and Tiffany, along with Van Cleef & Arpels—which opened a new store last September—led the growth in luxury sales.

#Hyundai Department Store’s Pangyo branch also saw sales rise by 44.7% year-over-year last month. This was more than 10 percentage points higher than the 32.1% sales growth rate across all Hyundai Department Store branches during the same period. In particular, sales of relatively high-priced luxury jewelry and watches, as well as premium apparel, increased by 56.0% and 31.5%, respectively.

At Lotte Department Store, the Dongtan branch showed particularly strong growth. While sales across all Lotte Department Store branches rose 20% year-over-year last month, sales at the Dongtan branch increased by 30%. Lotte Department Store attributes this to the development of a high-tech industrial cluster—including semiconductor companies—near the Dongtan branch, which has drawn demand not only from Dongtan but also from surrounding areas such as Yongin, Osan, Anseong, and Pyeongtaek. The Dongtan branch also saw a 40% increase in luxury goods sales, outpacing the 35% growth rate for the luxury segment across all branches. Sales in the lifestyle sector—which includes home appliances and furniture—and the sports sector each rose by approximately 50%.

An industry insider noted, “Given the region’s high concentration of employees from semiconductor companies like Samsung Electronics and SK Hynix, there is a strong preference for luxury goods, premium fashion, and high-end children’s brands, driven by their high purchasing power.”

These department stores plan to capture demand from the “semiconductor belt,” where high-spending customers are concentrated. As the semiconductor industry enters a boom period, employees of Samsung Electronics and SK Hynix are likely to receive substantial performance bonuses over the next few years.

Hyundai Department Store’s Pangyo branch plans to expand its Louis Vuitton store on the first floor, which was already expanded last January, and further attract luxury brands while strengthening its lineup of premium brands, including emerging contemporary labels. In addition to the existing five VIP lounges, the store plans to establish a new lounge for its top-tier VIP customers.

Lotte Department Store is considering expanding the eligibility for the “Lotte SS Card” from employees of Samsung Electronics, Samsung Electro-Mechanics, Samsung SDI, and Samsung Display to include employees of major companies such as SK Hynix, while also enhancing customer benefits. The store plans to attract luxury brands and content with strong customer appeal.