SEOUL: What are tourists in South Korea spending their money on right now? The answer might surprise you – and it probably fits in a tote bag.
Gone are the days when foreign visitors lined up at luxury boutiques and high-end department stores hunting for duty-free bargains.
According to a new report from the Korea Tourism Organization (KTO), a government affiliate responsible for promoting and developing the country’s tourism industry, tourists are now spending less per purchase but buying far more often, showing a shift toward practical, experience-driven consumption.
The analysis, based on credit card transaction data gathered through KTO’s tourism data platform from 2018 to September 2025, found that per-transaction spending dropped from 150,000 won (S$130) in 2019 to 120,000 won (S$104) in 2025.
Yet total spending per visitor surged 83 per cent over the same period, driven by a 124 per cent jump in purchase frequency.
These numbers indicate a clear shift away from big-ticket splurges toward frequent purchases of affordable, everyday items that reflect local lifestyle trends.
So-called K-lifestyle goods – quirky stationery, character merchandise and accessories with a distinctly Korean vibe – are leading the charge.
The number of transactions at gacha shops, or arcades with claw machines and capsule toy dispensers, soared 142 per cent in the first nine months of 2025 compared to the same period in 2024. Stationery stores and bookshops followed suit, posting gains of 48.7 per cent and nearly 40 per cent, respectively.
The shift extends to fashion, where purchases of underwear, sportswear and accessories are outpacing conventional apparel. K-beauty remains a juggernaut: cosmetics sales grew 35 per cent, pharmacy purchases jumped 67 per cent and health supplements – particularly red ginseng products – shot up 75 per cent.
Olive Young, the country’s ubiquitous health and beauty chain, saw sharp growth not just in traditional tourist hubs like Myeong-dong but also in trendy districts and outlet malls.
“The transition from high-end consumption to practical, lifestyle-driven spending shows how Korean culture and K-content are expanding their influence in the global tourism market,” said head of KTO’s tourism data strategy team, Lee Mi-sook. - The Korea Herald/ANN
