'Shopping, everything — it's so much cheaper': Korea emerges as top value travel destination

South Korea is rapidly gaining a reputation among foreign travelers as a destination that offers exceptional value for money. With a weakening won drawing visitors in growing numbers, some forecasts now suggest total inbound tourist arrivals this year could surpass 22 million for the first time.

According to the Korea Culture and Tourism Institute's international tourism market outlook released Wednesday, 4.743 million foreign tourists visited South Korea in the first quarter of this year, up 22.6 percent from the same period last year. Cumulative arrivals from January through April reached 6.77 million, marking double-digit growth for four consecutive months.

By nationality, China led all countries in April with 440,000 visitors, followed by Japan with 230,000, Taiwan with 150,000 and the United States with 130,000. Taiwan posted the highest growth rate among major source markets, with arrivals up 34.4 percent year on year.

The primary driver behind the surge is the won's weakness. In May, the won-dollar exchange rate climbed above 1,500 won, sharply eroding the currency's value. According to the Bank for International Settlements, the won has fallen to its lowest level in 17 years — since the global financial crisis.

The weaker won has significantly reduced the cost of accommodation, dining and shopping for foreign visitors. K-content events — including BTS's comeback concerts — have also fueled demand for travel to South Korea.

Foreign tourist spending has reached record levels. Card spending by foreign visitors to Seoul in April reached 1.1532 trillion won (about $757 million), a 50.5 percent increase from the same month last year. It was the first time monthly foreign card spending had exceeded 1 trillion won since records began in 2018.

Shopping accounted for the largest share of spending at 45.4 percent, followed by medical services at 24.8 percent, food and beverage at 13.1 percent and accommodation at 11 percent. Analysts note that spending patterns, once concentrated in duty-free stores, have broadened to include mid- to low-priced beauty products, food, department stores and luxury goods.

CJ Olive Young, now a fixture on foreign tourists' itineraries, saw its offline sales to foreign customers rise 44 percent year on year in the January-to-May period — far outpacing the overall growth in inbound arrivals. Foreign customers accounted for 80 percent of sales at its Anguk Station branch and 81 percent at its Gwangjang Market branch.

Daiso is also seeing a rapid rise in foreign demand. Card payments by foreign customers at its Myeong-dong Station branch surged 130 percent in 2023, then rose 50 percent in 2024 and 60 percent in 2025. The trend has continued this year, with spending up 70 percent in the first quarter compared to the same period last year.

Luxury spending is climbing as well. All three major department store operators — Shinsegae, Lotte and Hyundai — posted record quarterly sales in the first quarter of this year. Shinsegae's department store division reported sales of 740.9 billion won, up 12.4 percent year on year, while Lotte Department Store posted 872.3 billion won, up 8.2 percent, and Hyundai Department Store recorded 632.5 billion won, up 7.4 percent. Luxury goods sales at all three chains rose between 28 and 30 percent, leading the earnings improvement.

Foreign visitors have been vocal about experiencing Korea's value firsthand. A K-pop fan in her 20s living in Melbourne said prices in Korea were low yet reasonable. "Now it feels like a waste to pay more somewhere else," she said, adding that she plans to stock up on necessities every time she visits Korea.

A user from Thailand echoed the sentiment. "The Korean won is really cheap right now. People visiting Korea now can enjoy the best exchange rate," the user wrote. "Whether it's shopping or anything else, you can do it all for so much less."