Lackluster consumer spending has been a headache for policymakers striving to reinvigorate the sluggish economy, but recent data show that Koreans are spending more than ever before overseas.
According to Bank of Korea data, Korean households’ total expenditure abroad grew 13.7 percent on-year in 2015 to a record high of 26.27 trillion won ($22.7 billion).
Overseas spending has risen for four consecutive years, with the pace of growth far exceeding that of domestic expenditure. Last year, households’ spending here posted a 2.7 percent increase, compared to the 13.7 percent gain in their overseas expenditure.
The key reason for the increased spending has been attributed to the growing number of Koreans traveling abroad.
In 2015, some 19.3 million Koreans, up 20.1 percent from the previous year, ventured overseas for travel.
On the other hand, Korea saw a 7.4 percent fall in foreign tourists’ spending last year as the number of visitors shrank 6.8 percent, for the first time in 12 years. Total spending by foreign tourists in Korea came in at 14.3 trillion won in 2015.