Travel Surge: Card Spending Abroad Exceeds $6 Billion in Q1

Overseas travel demand has surged, pushing South Korean residents' card spending abroad to a record high in the first quarter, nearing the previous quarter's peak. According to the Bank of Korea's report on resident card usage abroad, spending reached $6.1 billion, nearly matching the all-time high of $6.11 billion set in the fourth quarter of last year. This represents a substantial 14.2% increase compared to the $5.35 billion spent in the first quarter of the previous year.

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The card spending performance of residents abroad in the first quarter exceeded $6 billion, approaching the record high for a quarterly period.

Annual card spending abroad by residents is projected to continue breaking records, reaching an estimated $21.72 billion in 2024 and $22.91 billion in 2025. This upward trend is attributed to the strong rebound in travel demand and the growing popularity of overseas direct purchases.

The significant card spending in the first quarter is primarily linked to the robust recovery in outbound tourism. Data from the Korea Culture and Tourism Institute shows that the number of South Korean travelers abroad reached 8.33 million in the first quarter, a notable increase from 7.89 million in the previous quarter and 7.79 million in the same period last year.

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The number of domestic outbound travelers in the first quarter was 8.331 million, significantly higher than the 7.893 million in the previous quarter.

Analyzing card types, credit card spending decreased by 1.3% compared to the previous quarter, while check card spending rose by 2.4%. This continues a trend observed since the first quarter of last year, where the proportion of credit card usage has declined, and check card usage has increased. Credit cards accounted for 67.2% of the spending, with check cards making up 32.8%.

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Credit card spending decreased by 1.3% compared to the previous quarter, while check card spending increased by 2.4%.

In contrast, overseas direct purchases by residents saw a slight decrease of 13.1% from the previous quarter, totaling $1.35 billion, which was similar to the first quarter of last year. Meanwhile, spending by non-residents (foreigners) in South Korea amounted to $3.57 billion in the first quarter, a 5.4% decrease from the previous quarter but a significant 30.2% increase compared to the first quarter of last year.

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The amount spent per card abroad was $325, higher than $301 in the first quarter of last year and $321 in the previous quarter.