Even with Rising Exchange Rates, Overseas Travel Continues... 19.6% Increase in Card Overseas Spending in Q2

Overseas Online Shopping Decreases but Card Spending Surges
Departures Increase 133% as Countries Ease Entry Restrictions

On the 8th of last month, the departure hall of Terminal 1 at Incheon International Airport was bustling with passengers. Photo by Mun Ho-nam munonam@

Although the won-dollar exchange rate has shown a significant upward trend this year, the amount spent on cards by Koreans overseas in the second quarter increased by nearly 20% compared to the first quarter, as the number of outbound travelers rose following the stabilization of COVID-19.

According to the "Overseas Card Usage Performance of Residents in the Second Quarter" released by the Bank of Korea on the 29th, the total overseas card (credit, check, debit) spending by domestic residents during this period amounted to $3.662 billion.

This represents a 19.6% increase compared to the first quarter ($3.062 billion) and an 8.6% increase compared to the same period last year.

Both the number of cards used (4.0%) and the amount spent per card (15.0%) increased compared to the previous quarter.

Despite a decline in overseas online shopping due to the sharp interest rate hikes by the U.S. Federal Reserve (Fed) and the rising won-dollar exchange rate, card spending increased as the number of overseas travelers grew.

The Bank of Korea explained the increase in overseas card spending by stating, "Despite a decrease in direct overseas purchases through online shopping due to the rise in the won-dollar exchange rate, the increase in the number of outbound domestic travelers caused by the easing of entry restrictions in various countries around the world is the main factor."

The won-dollar exchange rate (transaction standard rate, daily average) rose 4.5% from 1,204.9 won in the first quarter to 1,259.6 won in the second quarter. Accordingly, the amount spent on direct overseas online shopping decreased by 9.2%, from $1.14 billion in the first quarter to $1.03 billion in the second quarter.

On the other hand, the number of outbound domestic travelers surged by 132.7%, from 406,000 to 944,000 during the same period.

Looking at the types of cards, spending increased for credit cards (23.6%) and check cards (9.0%), while spending on debit cards decreased (-11.6%).

This content was produced with the assistance of AI translation services.