South Korea's Retail Market Bifurcates as Income Gap Widens; Hypermarket Share Falls from 17.9% to 7.9% in 6 Years

According to the National Data Service and Ministry of Trade, Industry and Energy, South Korea's retail sector is experiencing a pronounced K-shaped consumption pattern driven by widening income inequality. In Q1 2026, the bottom 20% income earners saw monthly average income rise 2.7% to 1.17 million won, while the top 20% experienced a 4.2% increase to 12.378 million won.

This income bifurcation is directly reshaping retail landscape. The combined market share of South Korea's three major hypermarket chains—Emart, Lotte Mart, and Home Plus—plummeted to 7.9% as of April 2026, down from 17.9% in 2020, marking a decline of over 50% in six years. Meanwhile, luxury department stores and ultra-low-cost retailers like Daiso are thriving, with Daiso posting 4.5 trillion won in annual revenue. Home Plus entered corporate restructuring proceedings in March 2025.