Surging Inbound Tourism Emerges as a New Engine for Domestic Consumption
Kwon Soon-woo pointed to a fresh, unprecedented growth driver for domestic-facing companies: foreign tourist arrivals. Last year's roughly 19 million visitors marked the first full recovery to pre-pandemic levels, with about 23 million expected this year. The government's target of 30 million by 2029 looks achievable at the current pace.
From January through April this year, cumulative foreign arrivals reached 6.77 million, up 21% year-on-year, while their total spending jumped 41% over the same period — roughly double the pace of visitor growth. A weaker won, delivering roughly 60% more purchasing power per dollar than a year earlier, was cited as a key driver of the outsized spending increase.
The nationality mix is also diversifying: China's dominant share has faded, with China and Japan combined now accounting for under 50% of arrivals, while the United States, Europe, and Taiwan gain share. Long-haul flight tickets to Korea reportedly topped global sales rankings, reinforcing the narrative that Korea's appeal now extends beyond semiconductors into tourism.