South Korea’s tourism sector recorded a significant milestone in May as foreign tourist spending surpassed 2 trillion won ($1.32 billion) for the very first time, according to recent data released on Wednesday.
Specifically, credit card expenditures by inbound travelers to South Korea soared to 2.12 trillion won in May, marking a substantial 67.1 percent increase year-on-year. This surge, reported by the Korea Tourism Organization (KTO), represents the fastest growth rate observed since 2023, highlighting a robust recovery in the nation’s tourism economy.
A significant driver of this overall growth was the spending by Chinese tourists, which more than tripled compared to May of the previous year, underscoring their pivotal role in the resurgence of South Korean tourism.
Analyzing the spending across different sectors reveals dominant trends. Shopping emerged as the category with the most substantial year-on-year increase, growing by 77.8 percent. Following closely were transportation, which saw a 70.6 percent rise; medical and wellness services, up 65.8 percent; and food and beverage, increasing by 64.9 percent.
The Korea Tourism Organization also highlighted an evolving polarization in consumption patterns. One segment shows a strong inclination towards “lifestyle” spending, primarily driven by younger travelers in their 20s and 30s seeking experiential value. Concurrently, a surge in demand for “ultra-luxury” brand shopping, predominantly led by Chinese tourists, defines the other significant spending trend.
Localized data further illustrates these trends. In Seoul’s iconic Myeongdong shopping district, foreign visitor spending skyrocketed by an impressive 162 percent year-on-year, significantly boosted by the popularity of customized apparel services like Nike By You. Meanwhile, Seongsu-dong experienced a remarkable 141.9 percent increase in spending, largely attributed to foreign visitors seeking out popular outdoor brands. The demand for specific products also drove growth: pharmacy sales saw a notable surge in both Seongsu-dong and Busan’s scenic Haeundae district, fueled by the rising interest in regenerative creams and various other specialized health and beauty products.
