Monthly spending by foreign tourists in South Korea hit a record high of over 1.4 trillion won ($911 billion) in May, marking the third consecutive month where foreign spending exceeded 1 trillion won. Data from the Korea Tourism Organization (KTO) revealed that credit card spending by inbound travelers reached 1.41 trillion won last month, showing a significant 73.7 percent increase from the previous year.
Spending by foreign travelers surpassed 1 trillion won for the first time in March, driven by global fans of K-pop megastar BTS who visited Seoul for the group’s comeback performance at Gwanghwamun Square. The trend continued in April as BTS started its world tour “Arirang” in Goyang, northwest of Seoul, leading to another record high in foreign spending.
Despite the absence of BTS concerts in May, foreign tourist spending in South Korea reached a new peak, indicating a more stable phase for the country’s tourism sector according to local experts. Shopping accounted for the largest share of foreign spending at 39.1 percent, followed by “beauty wellness” at 21.1 percent, fashion at 14.3 percent, and “lifestyle food” at 11.9 percent, among other sectors.
The amount of money withdrawn from overdraft accounts surged to the highest level in nearly four years last week, with borrowers increasingly utilizing credit for stock investment. Industry data revealed that the outstanding overdraft balance of individuals at major lenders stood at 43.34 trillion won (US$28.3 billion) as of Thursday, the highest figure since October 2022 in terms of end-month balance.
Outstanding credit loans, including overdrafts, reached 108.7 trillion won as of Thursday, marking the highest level in three years since June 2023. Borrowers spent a total of 43.3 trillion won from such accounts with a combined maximum credit limit of 96.7 trillion won as of Thursday. The average usage rate of overdraft accounts stood at 44.8 percent, the highest level since the pandemic.
