Provincial stores' sales lag far behind Seoul, KB Financial analysis shows

Provincial commercial areas in South Korea are struggling, with average monthly sales per store reaching only one-third of those in Seoul, according to an analysis by KB Financial Group. The group's report, "2026 KB Commercial Area Revitalization Insight," released on August 10, found that as of March, the average monthly sales per store stood at 48.9 million won in Seoul, 24.52 million won in the Seoul metropolitan area, and just 17.51 million won in provincial regions.

The disparity in customer traffic is even more pronounced. The index for average monthly visitors per store was 116.6 points in Seoul, 65.7 points in the metropolitan area, and a mere 31.6 points in provincial areas. This suggests that for every 100 visitors to a Seoul store, a provincial store attracts only about 31.

KB Financial Group's analysis of over 1,200 commercial areas nationwide indicates a growing polarization within provincial markets, characterized by significant differences across regions and store types. The overall growth of commercial areas has stalled, with the revitalization index declining since 2024.

The report utilized the "KB National Commercial Area Revitalization Index," a composite score developed by KB Kookmin Bank, KB Kookmin Card, and Korea Data Bank. This index integrates 25 data points, including financial asset information, credit card spending data, and local foot traffic, rent, and vacancy rates, to assess the sustainability, profitability, stability, customer attraction, and growth potential of commercial areas. As of March, the national index stood at 53.4, with Seoul and its metropolitan area at 60.1 and provincial areas at 50.7.