South Korea Posts Third Straight Tourism Surplus as Foreign Visitor Arrivals Jump

Seoul | EcoPulse24

South Korea recorded a $220.5 million tourism account surplus in May, marking the country's third consecutive monthly surplus as foreign visitor arrivals continued to climb, according to government data released on Sunday.

Figures published by the Korea Tourism Organization (KTO) showed the surplus reversed a $820.2 million deficit recorded in the same month last year, highlighting the continued recovery of South Korea's tourism sector.

The latest result follows a $263.8 million surplus in March, ending a streak of 72 consecutive months of tourism account deficits that had persisted since March 2020.

Tourism Revenue Outpaces Spending

South Korea generated $2.58 billion in tourism revenue during May, exceeding outbound tourism spending of $2.36 billion, resulting in a positive tourism balance for the third consecutive month.

The average spending per foreign visitor reached $1,324, while South Korean travelers spent an average of $1,007 per person on overseas trips.

Foreign Visitor Arrivals Continue to Rise

Separate government data showed that 1.95 million foreign tourists visited South Korea in May, representing a 19.4% increase compared with the same month a year earlier.

Meanwhile, the number of South Koreans traveling abroad declined 2.1% year-over-year to 2.34 million travelers.

Hallyu and Weak Won Drive Recovery

Kim Nam-joo, a professor in the Department of Tourism at Hanyang University in Seoul, said the sharp increase in foreign visitors has been driven by the growing global popularity of the Korean Wave (Hallyu) and the depreciation of the South Korean won, which has made travel to the country more affordable.

He added that elevated airfares, partly resulting from disruptions linked to the conflict in the Middle East, have discouraged outbound travel by South Koreans, further supporting the tourism account.

Tourism Snapshot

EcoPulse24 Analysis

South Korea's third consecutive tourism surplus signals a sustained recovery in one of the country's key service industries after years of pandemic-related weakness. The turnaround reflects both stronger inbound demand and softer outbound travel, improving the country's tourism balance.

The continued global popularity of Korean culture (Hallyu) - including K-pop, television dramas and entertainment - has remained a major driver of inbound tourism, while the weaker won has improved the country's price competitiveness for international visitors.

At the same time, higher international airfares, partly influenced by geopolitical tensions affecting global aviation routes, have reduced outbound travel by South Koreans, reinforcing the positive tourism balance.

If inbound visitor growth remains strong through the second half of the year, tourism is likely to provide additional support for South Korea's services sector, domestic consumption and broader economic activity, while contributing positively to the country's external accounts.