Spending by foreign tourists in S. Korea hits fresh high in May
Seoul, June 28
Monthly spending by foreign tourists in South Korea reached a record high of over 1.4 trillion won in May, marking the third consecutive month foreign spending surpassed 1 trillion won, data showed on Sunday.
Credit card spending by inbound travellers came to 1.41 trillion won last month, up 73.7 percent from a year earlier, according to the data from the Korea Tourism Organization (KTO), reports Yonhap news agency.
Spending by foreign travellers surpassed 1 trillion won for the first time in March, as global fans of K-pop megastar BTS flocked to Seoul to watch the boy group's comeback performance at Gwanghwamun Square.
It hit another record high in April as BTS kicked off its world tour "Arirang" in Goyang, northwest of Seoul.
The record-high figure posted in May despite the absence of BTS concerts suggests South Korea's tourism sector has entered a more stable phase, local experts noted.
By sector, shopping accounted for the largest share at 39.1 percent of foreign spending, followed by "beauty wellness" at 21.1 percent, fashion at 14.3 percent, and "lifestyle food" at 11.9 percent, among others.
Meanwhile, the amount of money drawn out from overdraft accounts rose to the highest level in nearly four years last week, as borrowers took out more credit for stock investment, data showed on Sunday.
The outstanding overdraft balance of individuals at five major lenders -- KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank and NH Nonghyup Bank -- stood at 43.34 trillion won (US$28.3 billion) as of Thursday, according to industry data.
It marks the highest figure since October 2022 in terms of end-month balance.
Outstanding credit loans, including overdrafts, came to 108.7 trillion won as of Thursday, the highest level in three years since June 2023.
As of Thursday, borrowers spent a total of 43.3 trillion won from such accounts with a combined maximum credit limit of 96.7 trillion won, according to the data.
The average usage rate of overdraft accounts was 44.8 percent, recording the highest level since the pandemic.
— IANS
Reader Comments
Interesting how BTS concerts were a catalyst, but now the tourism sector seems to be self-sustaining. The spending breakdown shows a shift from just shopping to experiences like beauty and food. However, the overdraft data is concerning - people borrowing for stock investments in Korea too, just like in India. The FOMO is real everywhere! 😅
As someone who's lived in Korea, I can confirm this is genuine. The "beauty wellness" sector is huge - not just plastic surgery but also skincare clinics, hair treatments, and spa services. But we Indians need to be careful about comparing too much. Our tourism strengths are different - heritage, spirituality, diversity. Let's play to our strengths rather than copying others. 🙏
The overdraft figure of 43.34 trillion won is alarming. People are borrowing to invest in stocks - this kind of risk-taking reminds me of the Indian stock market frenzy post-COVID. But one thing to note: Korea has stricter regulations on foreign tourists spending, yet they're hitting records. Meanwhile, India still has issues with tourist visa processing and infrastructure. We need to get our basics right first. 🇮🇳
The Korean tourism model is impressive: they created a global "brand" through K-pop and K-beauty, and now tourists come for the entire experience, not just one event. The spending breakdown shows they've built a complete ecosystem. It's like how Bollywood brings tourists to Mumbai, but they've scaled it to a national level. Smart marketing, strong government support, and consistency are key lessons for us.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.