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

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@

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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.

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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.

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