"Fast and Skilled Korea, Visiting for Beauty"... Era of 2 Trillion Won in Foreign Medical Spending

Medical Spending Surges 63% by October... Rapid Growth Toward 2 Trillion Won
K-beauty and Advanced Medical Capabilities Combine to Absorb Global Demand
Qualitative Shift Needed Amid Market Concentration, Gaps in Aftercare, and Fragmented Policy

This year, the medical spending of foreign medical tourists visiting South Korea is expected to approach 2 trillion won, following last year’s milestone of surpassing 1 trillion won for the first time. In the wake of the COVID-19 pandemic, global demand for medical and wellness services has increased, and South Korea is emerging as a major medical destination by leveraging its strengths in K-beauty, advanced medical expertise for serious conditions, reasonable costs, and rapid access to care. However, the industry faces challenges for sustainable growth, such as the concentration in cosmetic fields and inadequate aftercare.

According to the Korea Tourism Organization on December 5, the medical spending by foreign medical tourists reached 1.6145 trillion won as of October this year, a 63% increase compared to the same period last year (990.6 billion won). Last year, the spending exceeded 1 trillion won for the first time, and this year it has already far surpassed that figure, making it likely to approach 2 trillion won by year-end.

Since the pandemic, South Korea has continued to grow by absorbing global demand for cross-border medical travel. Last year, 1.17 million foreign medical tourists visited Korea, a 93% increase from the previous year. This is the highest figure since the medical tourism system was institutionalized in 2009, and more than double the previous record of 497,000 in 2019 before the pandemic. This year, the record is likely to be broken again.

Population aging, the rise in chronic diseases, and the increasing burden of medical expenses in advanced countries are also cited as factors driving demand for medical travel to Korea. In countries such as the United States, the United Kingdom, and Canada, long waiting times for treatment have led to an increase in “essential medical travel,” while Korea is recognized as a country that absorbs this demand with relatively low costs, quick access to care, and strong treatment outcomes.

The most prominent sector is cosmetic and dermatological care. The popularity of K-beauty has translated into trust in medical services, leading to a rise in procedure-based spending tailored to short stays. This year, 56.7% of foreign medical spending was in dermatology, followed by 23.6% in plastic surgery. More than 80% of total spending was in the cosmetic sector. Notably, Japan and Taiwan have emerged as key markets, with spending increasing dozens of times compared to pre-pandemic levels. Although stays are short, the high rate of repeat visits is seen as establishing a foundation for “sustained demand.”

Korea is also regarded as having world-class competitiveness in advanced fields such as cancer, cardiac surgery, and organ transplantation. It excels in key indicators such as treatable mortality rates and cancer survival rates. By region, Seoul accounts for over 85% of the total, showing a heavy concentration, but cities like Busan and Jeju are demonstrating independent growth potential based on specialized models. Busan is developing specialized clinics focused on dentistry and orthopedics, while Jeju is expanding wellness and medical check-up programs that leverage its pristine environment, thereby broadening the base for regional medical tourism.

Medical tourism, by its nature, involves a continuum from examination and procedure to recovery and aftercare, which is accompanied by spending on accommodation, food and beverage, and shopping. The average expenditure of foreign medical tourists is significantly higher than that of general tourists, and a high proportion of medical visits lead to increased interest in traveling to Korea for leisure purposes.

Nevertheless, there are considerable challenges. According to a survey by the Korea Health Industry Development Institute, foreign patients rated Korea highly for medical technology, equipment, and hospital reliability, but ranked it lowest for “user convenience,” such as guidance within hospitals, movement flow, and explanations of costs. There are also significant inconveniences related to recovery and consultation after returning to their home countries, with the lack of a remote management system between patients and doctors cited as an obstacle. The absence of a control tower, with functions such as visa issuance, promotion, and dispute resolution dispersed across different ministries, is also considered a challenge for the industry.

Lee Kwan-young, Associate Research Fellow at Yanolja Research, said, “Korea has a rare combination of strengths, including K-beauty, advanced medical care, price competitiveness, and quick access. The turning point for industrialization will be whether Korea can expand beyond cosmetic procedures to include check-ups, rehabilitation, wellness, and serious treatment, and shift toward an integrated design of the patient experience.”