As the number of foreign tourists visiting South Korea increases, spending in the medical and cosmetics sectors has surged significantly. With the number of inbound tourists expected to surpass 20 million, analysts suggest that tourism demand is invigorating the domestic consumption market.
According to data from the Ministry of Culture, Sports and Tourism and the Korea Tourism Organization's Korea Tourism Data Lab, card spending by foreigners in tourism-related sectors reached 15.94 trillion won from January to September this year, a 47.7% increase compared to the same period last year, which saw 10.79 trillion won.
Notably, spending by foreign tourists is expanding beyond mere shopping to include medical services. From January to September, foreign medical spending in South Korea amounted to 1.84 trillion won, marking a 57.9% increase from 1.17 trillion won during the same period last year. The number of transactions also rose significantly, increasing by 69.0% to 4.43 million.
Dermatology accounted for more than half of the medical spending. The share of dermatology in total medical expenses rose from 53.72% last year to 55.72% this year. Pharmacy spending saw an impressive increase of 196.1%, nearly tripling in size, with its share of total medical spending jumping from 6.66% to 12.49%. This indicates that the demand for medical tourism centered around dermatology is also driving purchases of pharmaceuticals.
The popularity of K-beauty is contributing to increased foreign spending in the cosmetics distribution sector. According to CJ Olive Young, foreign purchases at domestic offline stores exceeded 1 trillion won from January to August this year, reaching this milestone three months earlier than last year, which achieved the same figure in November. During this period, the number of foreign transactions reached 11.01 million.
The increase in spending by foreign tourists is also reflected in the domestic mobile payment market. KakaoPay reported that offline payment amounts by foreign visitors in the first half of the year rose by 68.8% compared to the same period last year. By country, the largest increase in payment amounts came from China, followed by Hong Kong and Japan. Notably, payments from Hong Kong surged by 111.7%, outpacing China's 66.2% increase.
By sector, department store payment amounts saw the highest growth rate at 129.1%. Significant increases were also observed in cosmetics (61.6%) and duty-free shops (53.1%). However, the increase in KakaoPay's payment amounts may also reflect the expansion of integration with overseas mobile payment services, making direct comparisons with overall foreign tourist spending growth challenging.
Experts emphasize the need to diversify consumption sectors and regions to ensure that the increase in foreign tourists leads to sustained domestic economic activation rather than one-time spending. Shin Hak-seung, a professor at Hanyang University, stated, "To continuously attract foreign spending and repeat visits, we must maximize the experiential value for tourists," adding that each region should develop into a tourist space where visitors can experience local food, culture, and daily life.
According to data from the Ministry of Culture, Sports and Tourism and the Korea Tourism Organization's Korea Tourism Data Lab, card spending by foreigners in tourism-related sectors reached 15.94 trillion won from January to September this year, a 47.7% increase compared to the same period last year, which saw 10.79 trillion won.
Notably, spending by foreign tourists is expanding beyond mere shopping to include medical services. From January to September, foreign medical spending in South Korea amounted to 1.84 trillion won, marking a 57.9% increase from 1.17 trillion won during the same period last year. The number of transactions also rose significantly, increasing by 69.0% to 4.43 million.
Dermatology accounted for more than half of the medical spending. The share of dermatology in total medical expenses rose from 53.72% last year to 55.72% this year. Pharmacy spending saw an impressive increase of 196.1%, nearly tripling in size, with its share of total medical spending jumping from 6.66% to 12.49%. This indicates that the demand for medical tourism centered around dermatology is also driving purchases of pharmaceuticals.
The popularity of K-beauty is contributing to increased foreign spending in the cosmetics distribution sector. According to CJ Olive Young, foreign purchases at domestic offline stores exceeded 1 trillion won from January to August this year, reaching this milestone three months earlier than last year, which achieved the same figure in November. During this period, the number of foreign transactions reached 11.01 million.
The increase in spending by foreign tourists is also reflected in the domestic mobile payment market. KakaoPay reported that offline payment amounts by foreign visitors in the first half of the year rose by 68.8% compared to the same period last year. By country, the largest increase in payment amounts came from China, followed by Hong Kong and Japan. Notably, payments from Hong Kong surged by 111.7%, outpacing China's 66.2% increase.
By sector, department store payment amounts saw the highest growth rate at 129.1%. Significant increases were also observed in cosmetics (61.6%) and duty-free shops (53.1%). However, the increase in KakaoPay's payment amounts may also reflect the expansion of integration with overseas mobile payment services, making direct comparisons with overall foreign tourist spending growth challenging.
Experts emphasize the need to diversify consumption sectors and regions to ensure that the increase in foreign tourists leads to sustained domestic economic activation rather than one-time spending. Shin Hak-seung, a professor at Hanyang University, stated, "To continuously attract foreign spending and repeat visits, we must maximize the experiential value for tourists," adding that each region should develop into a tourist space where visitors can experience local food, culture, and daily life.
* This article has been translated by AI.
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