South Korea's travel deficit with Japan hits record high amid tourism boom

South Korea's travel spending imbalance with Japan widened significantly in 2025, reaching an all-time high of $5.7 billion, according to data released by the Bank of Korea. This marks the largest deficit since statistics began in 1998, highlighting a growing trend of South Koreans favoring travel to Japan.

The deficit grew as South Korean spending on trips to Japan soared to $8.44 billion, while revenue from Japanese tourists visiting South Korea stood at $2.73 billion. Although the COVID-19 pandemic briefly led to a surplus in 2020 and 2021, the deficit returned in 2022 and has expanded each year since.

Several factors contribute to this trend. The depreciation of the Japanese yen has made travel to Japan more affordable for South Koreans. Furthermore, the full resumption of international flight routes post-pandemic has facilitated easier travel. These elements combined fueled strong demand for Japanese travel among South Koreans.

In 2025, a record 9.46 million South Koreans traveled to Japan, a 7.3% increase from the previous year and a substantial 69.4% rise compared to pre-pandemic 2019 levels. In contrast, 3.65 million Japanese tourists visited South Korea during the same period, a 13.3% year-on-year increase.

While the deficit with Japan is substantial, South Korea also recorded travel deficits with the United States ($4.71 billion), Southeast Asia ($2.05 billion), and the European Union ($911 million). However, the country maintained travel surpluses with China ($3.77 billion) and Central/South America ($25.5 million).