[Edaily Kang Gyeong-rok Travel Reporter] As the number of foreign tourists visiting South Korea increases and domestic spending surges, the country’s tourism balance of payments—which had long suffered from chronic deficits—is showing signs of a rapid turnaround. From January through July of this year, the tourism deficit shrank to one-fifth of the level recorded during the same period last year, and the sector posted a surplus for four consecutive months during the spring. However, critics point out that nearly half of all foreign spending is concentrated on shopping, and there is a need to spread the trickle-down effect across the entire industry, including accommodations and local tourism.

According to the Korea Tourism Data Lab on the 11th, the tourism balance deficit for January through July of this year totaled $1.3122 billion (approximately 1.8371 trillion won; preliminary figure). Compared to the same period last year ($6.0824 billion), this represents a 78.4% ($4.7702 billion) decrease in just one year.
Looking at the monthly trends, the rebound is even more pronounced. After the tourism balance returned to a surplus in March, it remained in the black for four consecutive months through June. Although the cumulative balance for January through July remains in the red due to massive deficits in January and February—when demand for overseas travel peaks—the balance appears to be approaching equilibrium when seasonal factors are excluded. Foreigners’ domestic credit card spending in the second quarter also hit a record high of $4.86 billion, proving that visitors’ spending is directly translating into domestic consumption.
However, there are clear limitations behind this improvement in the balance of payments. While foreign tourists are spending more, their consumption is overly concentrated in specific sectors.
In fact, from January to July of this year, shopping accounted for 44.9% of foreign tourist spending. In contrast, spending on accommodation—a core infrastructure sector—remained at just 13.3%. Analysts note that while shopping spending in areas like Myeongdong and duty-free shops has skyrocketed as more foreign visitors come to Korea on the back of the K-culture boom, the ecosystem needed to encourage them to spend money on high-value-added industries—such as lodging, experiential activities, and local tourism—remains inadequate.
Experts agree that trends in the second half of the year will be decisive in determining whether the tourism balance of payments can settle into an annual surplus. In fact, the balance shifted into a deficit in July, revealing signs of instability.
Yoon Hye-jin, a professor in the Department of Tourism Development and Management at Kyonggi University, emphasized, “The key will be how well spending by foreign visitors to Korea can offset the rising trend in overseas travel expenditures by domestic travelers in the second half of the year.” She added, “There is an urgent need to refine sophisticated tourism policies that go beyond one-time shopping spending to extend the length of stays and distribute tourists throughout the regions.”