"Is It a Recession?"... Overseas Card Spending Hits 31 Trillion Won, a Record High

Overseas Card Spending by Residents Hits Record High of $21.72 Billion Last Year
Breaks Previous Record of $19.22 Billion
Driven by Increased Demand for Overseas Travel and Direct Online Purchases

Last year, more than $20 billion was spent using cards overseas, setting a new record. This result is attributed to increased demand for overseas travel and a rise in direct overseas purchases (direct buying) through online shopping.

On the 13th, one day before the Chuseok holiday, Incheon International Airport Terminal 1 duty-free zone is bustling with crowds heading overseas during the holiday period. Photo by Jo Yongjun jun21@

According to the Bank of Korea on the 26th, the amount spent by residents using cards (credit + debit) overseas last year was $21.72 billion (approximately 31.07 trillion KRW). This broke the previous record of $19.22 billion set last year, marking the highest amount ever recorded. It represents a 13.0% increase compared to the previous year.

Card usage amounted to $19.22 billion in 2018, slightly decreasing to $19.12 billion the following year. Due to the spread of COVID-19 in 2020, it sharply dropped to $10.31 billion, and then modestly recovered to $12.23 billion in 2021 and $14.543 billion in 2022 while still under the influence of the pandemic.

The Bank of Korea cited the increase in outbound Korean travelers due to rising overseas travel demand as a major factor behind last year's record performance. According to the Korea Culture and Tourism Institute's Tourism Knowledge Information System, the number of outbound Korean travelers increased by 26.3%, from 22.72 million in 2023 to 28.69 million last year.

The rise in direct overseas purchases through online shopping also had an impact. According to Statistics Korea, the amount spent on direct overseas purchases via online shopping increased by 14.0%, from $5.11 billion in 2023 to $5.83 billion last year.

By card type, credit card and debit card usage amounts increased by 5.4% and 37.8%, respectively.

Meanwhile, card usage by non-residents within Korea also increased significantly. Last year, it reached $11.99 billion, up 24.9% from the previous year. The number of cards used was 55.771 million, a 35% increase.