South Korea’s tourism industry had a banner year in 2024. Foreign visitors spent more money than ever before, pouring 9.26 trillion won ($6.39 billion) into the local economy -- a 33.8 percent increase from the previous year. The number of international arrivals also surged, reaching 16.37 million, nearly matching pre-pandemic levels.
Yet, despite this boom, South Korea’s long-standing travel deficit is expected to widen, as outbound Korean travelers considerably outnumber inbound tourists.
Shopping remains the biggest draw for foreign tourists, accounting for 37.8 percent of their spending. Seoul’s Myeong-dong district, hit hard by the pandemic, has been revived by visitors hunting for Korean beauty products, luxury fashion and K-pop merchandise. Upscale malls in Gangnam and duty-free shops near Gwanghwamun draw Chinese and Japanese shoppers taking advantage of tax-free deals.
Hotels and accommodations made up 33.9 percent of visitor spending, as travelers booked stays in Seoul’s hotels, Busan’s seaside resorts and Jeju’s boutique lodgings. Food was another major expense, making up 19.2 percent of spending, with many visitors eager to try a variety of dishes in the home of K-food.
Seoul remains the top destination, capturing nearly 66 percent of all foreign visitor spending. The capital’s mix of historic palaces, vibrant nightlife and world-class shopping makes it an essential stop. Beyond Seoul, visitors are increasingly exploring Busan’s beaches and seafood markets, Gyeonggi Province’s theme parks and royal heritage sites, and Jeju Island’s scenic hiking trails and volcanic craters.
Korea’s tourism recovery is almost complete
The rise in spending reflects a sharp recovery in tourist arrivals. In 2024, South Korea welcomed 16.37 million foreign visitors, a 48.4 percent increase from the previous year and 94 percent of the 2019 level, when tourism was at its peak. The industry has made a remarkable comeback from the pandemic slump, when arrivals plummeted from 17.5 million in 2019 to just 970,000 in 2021.
Chinese tourists made up the largest share, with 4.6 million visitors, many drawn by duty-free shopping and K-drama filming locations. Japanese travelers, numbering 3.22 million, often visited Busan and Jeju due to their close proximity. Taiwanese tourists, at 1.47 million, came for a mix of nature and culture, while 1.32 million American visitors were eager to explore Korea's modern technology, pop culture and historical landmarks.
Korea’s travel deficit to keep growing
Despite the rebound in inbound tourism, South Korea remains a net spender on travel. More Koreans are traveling abroad than ever before, with 29 million people flying overseas in 2024 -- nearly 1.8 times the number of foreign tourists entering the country.
This trend has continued for years. South Korea’s travel balance has been in a deficit every year since 2000, with the gap widening as international travel became more accessible. In 2023, the travel deficit hit $12.53 billion, the worst in five years. Although the 2024 figures have yet to be released, the shortfall is highly likely to grow further.
For many South Koreans, traveling abroad simply offers better value. The weak Japanese yen has made trips to Tokyo and Osaka particularly affordable, while destinations like Vietnam, Thailand and the Philippines provide warm-weather escapes at lower costs than domestic resorts. Europe also continues to be popular among younger travelers and honeymooners.
Domestic tourism spending in 2024 fell 4.3 percent to 40.94 trillion won, continuing a decline that began in 2019.
