LVMH is ramping up its expansion in South Korea, with the luxury conglomerate seeking to diversify its global footprint amid geopolitical and economic uncertainties that are clouding the consumer spending outlook in the United States and China.

The group’s two largest fashion labels — Louis Vuitton and Christian Dior — are both planning to expand their flagship maison-style stores in Seoul’s Cheongdam district within the next few years, according to people familiar with the matter who asked not to be identified discussing private deliberations. Dior’s revamp may take place as early as 2027 and is expected to feature a permanent restaurant, according to the report.

LVMH Moët Hennessy Louis Vuitton SE’s watch and jewelry house Bulgari is reportedly eyeing its first flagship location in South Korea, as the group strengthens its regional presence. Meanwhile, Tiffany & Co. is expected to open a flagship store in Seoul’s Cheongdam district in 2027, according to the same sources.

A representative for LVMH did not respond to a request for comment.

South Koreans’ enduring love for luxury, combined with a resilient economy and rising consumer confidence, has made the country a bright spot for top industry names amid an increasingly uncertain global retail landscape. Louis Vuitton, Hermès and Chanel posted almost 10% growth in their combined sales in the country last year, reaching $3.3 billion, according to government data.

Beyond domestic shoppers, a surge in visitors — mainly from China and Japan — along with the weaker won, has further boosted sales. Tourist spending rose by about a third to a record 9.26 trillion won ($6.6 billion) last year, according to the Korea Herald.

At the same time, China’s premium goods market shrank the most in a decade last year, while U.S. import tariffs have prompted fashion houses to hike prices, potentially driving wealthy shoppers to buy luxury items abroad. Even Japan, where a weak yen had fueled a boom in luxury spending, is now showing signs of a slowdown.

LVMH, founded by billionaire Bernard Arnault, has already been expanding its presence in South Korea. Celine opened its first boutique there in December last year, and Fendi launched its first flagship in 2023.

Other luxury groups are also betting on the South Korean market. Cie Financière Richemont SA — which saw its sales rise 20% in the country for the financial year ended in March — opened a new flagship for Swiss watchmaker Vacheron Constantin in Seoul in June. The store features Korean artworks, a digital archive, a private lounge, and a dedicated space for exhibitions and events. Hermès also relocated and expanded its flagship in the capital, reopening the location in August.