South Korea recorded its first monthly travel account surplus in more than 11 years in March, largely attributed to K-pop superband BTS’ return, which drew a significant influx of foreign visitors to the country.
The country’s travel balance recorded a surplus of $140 million in March, according to preliminary data from the Bank of Korea on Friday. It marked the first monthly surplus since November 2014, when the balance stood at $50 million.
Travel income jumped 68.3 percent from a month earlier to $2.7 billion in March, the highest monthly figure since the central bank began compiling the data in 1980. Compared with a year earlier, travel revenue rose 60.1 percent.
The sharp increase came with inbound visitors to South Korea exceeding 2 million for the first time ever in a single month. International arrivals reached 2.05 million in March, while the number of South Koreans traveling abroad stood at 2.29 million during the same period. That compared to February when 1.43 million travelers entered the country, while 2.77 million departed.
The influx can be attributed partly to seasonal factors, as spring is a peak tourism season for South Korea, as well as heightened global attention surrounding the March 21 comeback concert by BTS held at Gwanghwamun in Seoul, which likely boosted foreign arrivals.
Overseas fans visiting South Korea surged before and after the celebration of the group's return, following a four-year hiatus, boosting spending on accommodations, shopping, transportation and dining, which observers said boosted the country’s travel balance.
“The number of visitors increased partly due to the BTS concert and other events held in March,” Kim Young-hwan, a senior official at the BOK’s economic statistics department, said at a press briefing. “The number of foreign arrivals surpassed 2 million for the first time, and the increase does not appear to be temporary.”
The sharp decline of the Korean won also seems to have been a contributing factor. The currency fell to approximately 1,470 won against the dollar in late March, the weakest level since the 2008 global financial crisis, amid market jitters linked to tensions in the Middle East.
The weaker currency made travel to South Korea relatively cheaper for foreign tourists, while increasing the burden of overseas travel costs from Korea.
Overseas travel expenditures by Korean nationals dropped by more than 10 percent compared to the previous month, reaching $2.56 billion in March. Despite this monthly decline, it still edged up 1.2 percent from a year earlier.
Overall, Asia's fourth-largest economy recorded its biggest monthly current account surplus in March, reaching $37.33 billion, a significant jump from $23.19 billion in February. The record surplus was driven largely by robust exports, particularly in semiconductors.
sahn@heraldcorp.com
