South Korea Tourism Market

How big is the South Korea Tourism Market in 2026?

Tourism spending in South Korea is projected to reach USD 98.5 billion by 2036, up from an estimated USD 45.2 billion in 2026. Growth is forecast at 8.1% a year over 2026 to 2036. The market was valued at USD 41.8 billion in 2025. Inbound demand is expanding far faster than outbound travel by residents. Foreign arrivals rose 21.5% to 17.11 million from January to September 2026 [1], against 2.9% growth in residents' overseas trips in 2025 [4]. Easier entry rules [3] and interest in Korean content [6] explain much of that difference.

Domestic travel remains the volume base of the market. Residents spent KRW 39.5 trillion on domestic trips in 2025, a 7.3% rise recorded by the National Travel Survey [2]. Cost is the main limitation, since higher oil prices and fuel surcharges have made trips to Korea dearer since March 2026 [3]. The actual demand determinant is how far visitors travel beyond Seoul. Where regional access is strong, resort demand responds quickly. Lotte Tour Development lifted occupancy at its Jeju resort hotel to 75.9% in the first quarter of 2026 [5].

Key Market Trends & Insights

• Visitor spending is rising faster than arrivals. Foreign card spending on tourism grew 46.8% in the first nine months of 2026, against arrival growth of 21.5% [1]. Revenue per visitor is therefore a larger growth driver than room demand.
• Medical and wellness services have become a core spending category. Foreign card spending on medical tourism in Seoul reached KRW 908.4 billion from January to June 2026, up 63.3% [7]. Clinics and wellness operators near shopping districts therefore capture a larger share of each trip budget.
• Residents are choosing longer regional stays. The share of domestic trips with at least one night away rose from 40.0% in 2024 to 41.3% in 2025 [2]. Domestic travel spending in Daejeon rose 29.7%, the fastest gain among the 17 provinces and cities [2]. Overnight trips add room and dining revenue outside the capital, which widens the base for regional operators.

Regional Highlights

• In the Capital Area, Seoul remains the entry point for most foreign visitors. The International Visitor Survey found that 78.6% of second-quarter 2026 visitors went to Seoul, against 12.3% for Gyeonggi [6]. Seoul also accounted for 71.5% of national foreign card spending in the first half, excluding online purchases [7]. This concentration gives central Seoul operators the deepest demand pool in the country.
• Outside the Capital Area, regional gateways are gaining traffic. Arrivals through regional airports such as Gimhae, Daegu, Jeju and Cheongju rose 42.5% in June 2026 [9]. Airports and seaports outside the capital handled 28.2% of arrivals through September [1]. Hotels and tour operators in the southeast and on Jeju are the first to benefit from these routes.

South Korea Tourism Market Size and Forecast

Table 1: South Korea Tourism Market Size and Forecast

Market size and forecast	Value
Market size in 2025	USD 41.8 billion
Estimated market size in 2026	USD 45.2 billion
Projected market size by 2036	USD 98.5 billion
CAGR from 2026 to 2036	8.1%

Source: Future Market Insights analysis of the South Korea tourism market, 2026.

Analyst Perspective

“Independent planning is now the norm in Korea. Travellers compare transport, rooms and experiences one booking at a time. Operators gain pricing power when they package access that is hard to arrange alone, such as concert-linked stays, medical visits with an interpreter or regional routes with transport included. The main adoption barrier is dispersal beyond Seoul, because intercity transport and booking systems remain difficult for first-time visitors.”

- Ronak Shah, Principal Consultant, FMI

How is the South Korea Tourism Market segmented?

• By tourist type: Domestic Tourists and International Tourists.
• By tour type: Independent Travelers, Tour Groups, and Package Travelers.
• By booking channel: Online Booking, Phone Booking, and In-Person Booking.
• By tourism type: Sustainable, Medical, Sports, Cultural, Culinary, Faith, Wellness, and Others. Heritage and festival trips are also profiled in FMI's cultural tourism market study.
• By consumer orientation: Men and Women.
• By age group: 15-25 Years, 26-35 Years, 36-45 Years, 46-55 Years, and 66-75 Years.
• By region: Capital Area, Gangwon, Chungcheong, Honam, Yeongnam, and Jeju.

Why do Domestic Tourists lead by Tourist Type in the South Korea Tourism Market in 2026?

Domestic Tourists hold 66.5% of the South Korea Tourism Market by tourist type in 2026.

Residents lead because domestic travel is near-universal and frequent. The National Travel Survey found that 97.0% of residents aged 15 and over took a domestic trip in 2025 [2]. They made 300.9 million trips and spent 472.5 million days away [2]. Average domestic travel spending per resident reached KRW 852,000 during the year [2].

Domestic spending is local and car-based. Private cars accounted for 84.5% of domestic trips in 2025 [2]. Fuel, meals and roadside accommodation therefore form much of the spend. Domestic demand therefore tracks household confidence more closely than airline capacity. Spending grew 7.3% in 2025 after a decline in 2024 [2].

International Tourists hold the remaining 33.5% by tourist type and are growing faster. Foreign card spending on tourism reached KRW 15.8 trillion from January to September 2026, up 46.8% [1]. Faster inbound growth should narrow the domestic lead over the forecast period.

Table 2: Tourist Type, 2026 Share

Leading Share	2026 market share
Domestic Tourists	66.5%
All Other Segments Combined Share	33.5%

Source: Future Market Insights analysis of the South Korea tourism market, 2026.

Why do Independent Travelers lead by Tour Type in the South Korea Tourism Market in 2026?

Independent Travelers account for 89.9% of the South Korea Tourism Market by tour type in 2026.

Self-planned travel leads because residents and visitors now book trip components directly. Only 2.8% of residents' leisure trips in 2025 involved a travel agency product [2]. Some 78.4% of foreign visitors travelled independently from April to June 2026 [6]. Group tours accounted for 13.1% and air-and-hotel packages for 8.6% [6].

Regional data confirm the pattern. The Jeju Tourism Organization found that 96.8% of domestic visitors and 91.9% of foreign visitors travelled independently in 2025 [12]. Rooms, transport and tickets are bought separately. Suppliers therefore compete for app visibility and direct listings more than for agency allocations.

Tour Groups and Package Travelers together hold the remaining 10.1%. Group travel is recovering in some source markets, helped by a visa-free pilot for Indonesian group tourists that began on 28 May 2026 [3]. Group visitors stayed 4.9 days in the second quarter against 6.7 days for independent visitors [6]. Shorter stays limit the revenue value of each group arrival.

Table 3: Tour Type, 2026 Share

Leading Share	2026 market share
Independent Travelers	89.9%
All Other Segments Combined Share	10.1%

Source: Future Market Insights analysis of the South Korea tourism market, 2026.

Why does Online Booking lead by Booking Channel in the South Korea Tourism Market in 2026?

Online Booking accounts for 59.0% of the South Korea Tourism Market by booking channel in 2026.

Online channels lead because rooms, tickets and rental cars are now bought mainly through websites and apps. The Ministry of Data and Statistics recorded KRW 34.0 trillion of online travel and transport service sales in 2025, up 4.6% [10]. The category covers air, bus and rail tickets as well as car rental and accommodation [10]. Mobile devices handled KRW 24.1 trillion of the total [10].

Foreign visitors follow the same pattern. In the April to June survey, 82.7% of visitors reserved their accommodation themselves before arrival [6]. Online purchases made up KRW 2.2 trillion of the KRW 10.0 trillion that foreign visitors spent by card in the first half [7]. Public policy is reinforcing the shift, since the government worked with Klook and GO Hanpass to promote online bus booking from June 2026 [11]. These platforms form part of the wider online travel agencies market.

Phone Booking and In-Person Booking together hold the remaining 41.0%. Day trips by car need no advance reservation, and many meals and admissions are paid on site. Trips without an overnight stay still made up 58.7% of domestic trips in 2025 [2], which keeps a large share of spending outside online channels.

Table 4: Booking Channel, 2026 Share

Leading Share	2026 market share
Online Booking	59.0%
All Other Segments Combined Share	41.0%

Source: Future Market Insights analysis of the South Korea tourism market, 2026.

What are the key drivers restraints and opportunities?

South Korea tourism revenue depends on visitor numbers, length of stay and dispersal beyond Seoul. The cost of reaching and crossing the country determines how much of that demand converts into spending.

Driver

Inbound demand is at a record level. Arrivals reached 17.11 million by September 2026, and the ministry expected the year to pass the 2025 total of 18.94 million in October [1]. August arrivals of 2.25 million were the highest for that month in 30 years [3]. Korean content sustains this demand, since 34.5% of second-quarter visitors said Korean content first drew their interest in the country [6].

Restraint

Fuel costs and overseas holidays compete for the same travel budgets. The ministry reported that fuel surcharges raised the cost of trips to Korea from March 2026 [3], and it responded with airfare promotions run with airlines and online travel agencies. Residents took 29.58 million overseas trips in 2025, 2.9% more than in 2024 [4]. Each overseas holiday diverts spending from domestic hotels and attractions.

Opportunity

Wellness travel represents a higher-value product line. The Healing Tourism Industry Act took effect on 9 April 2026 [8]. The ministry selected 20 wellness destinations for foreign visitors and offers up to KRW 50.0 million of support per site [8]. Operators can therefore package stays that pair forest therapy with spa and food programmes, linking local supply to the global wellness tourism market. Clear pricing and multilingual service remain preconditions for foreign volume growth at each site.

How do tourism laws and entry rules affect South Korea tourism spending?

Entry rules determine which source markets can travel at short notice. The government eased multiple-entry visa rules for nationals of 11 Southeast Asian countries from 30 March 2026 [3]. A visa-free pilot for Indonesian group tourists followed on 28 May 2026 [3], and arrivals from Indonesia rose 22.5% from January to August [3]. Visa policy therefore functions as a demand lever for emerging source markets.

Tourism governance also changed in 2026. The Council for National Tourism Strategy moved under the President with 15 member ministries, and its new rules apply from 29 October [13]. Amendments to the Tourism Promotion Act took effect on the same date [14]. Local governments must now confirm a secured project site before they apply for national tourism subsidies [14]. Fewer stalled projects should bring regional attractions to market closer to schedule.

What limits reliable South Korea tourism capacity and service quality?

Transport outside Seoul is the main constraint on regional spending. About 382,000 foreign travellers used express and intercity buses in January to March 2026, up 32.2% [11]. The ministry still found low awareness of online bus booking among foreign visitors [11], and 16.3% of surveyed travellers said transport information was lacking [6]. Weak transport information therefore caps the share of visitors who reach regional destinations.

Visitor flows also remain concentrated. Only Busan and Jeju passed a 5.0% visitation rate outside the Capital Area in the second quarter [6]. Crowding in central districts can lower satisfaction in peak months, which weighs on repeat visits. The regional visitation rate still rose to 34.2% in the second quarter, up 2.8 points [9].

Where can tourism suppliers win additional business?

Events and medical services offer the clearest revenue upside, because both raise length of stay and spending per visitor. Foreign fans at the BTS concert in Gwanghwamun stayed 8.7 days and spent KRW 3.5 million each [15]. The average visitor in the first quarter stayed 6.1 days and spent KRW 2.5 million [15]. Content-linked trips of this kind sit within the wider film tourism market. Medical travel requires language support at scale. Seoul plans to raise its medical interpreter coordinators from 108 to 1,000 [7]. Suppliers that bundle tickets, rooms and local transport capture more of each trip budget.

South Korea Tourism Market by Country (2026 to 2036)

Table 5: South Korea Tourism Market Growth Forecast by Province and City

Country	CAGR, 2026 to 2036
Busan	9.0%
Gyeongbuk	8.7%
Seoul	8.3%
Gangwon	7.6%
Jeju	7.0%

Source: Future Market Insights analysis of the South Korea tourism market, 2026.

Busan

Busan has become the second gateway for foreign visitors. The Busan Tourism Organization recorded 484,057 foreign visitors in June 2026, 62.1% more than a year earlier [16]. The city's share of national foreign arrivals reached 22.6% for January to June 2026, against 19.2% for 2025 [16]. The visitor survey confirms the shift, with Busan's visitation rate up from 15.6% to 18.4% [6].

Large events fill hotel capacity in the city. The government ran a Welcome Week from 1 to 15 June around the BTS concerts in Busan on 12 and 13 June [15]. Busan also hosted the 48th session of the World Heritage Committee in July 2026 [17]. Arrivals through regional airports including Gimhae rose 42.5% in June [9], a sign that event demand is converting into regional air traffic.

Event traffic and new air capacity give Busan the fastest rate among the five profiled areas, a 9.0% CAGR expected from 2026 to 2036. Event-led demand creates sharp peaks, so hotels must also fill rooms in quiet weeks. Sea arrivals provide a second demand source. Regional seaports, including Busan, handled 1.58 million arrivals through September 2026, up 14.5% [1]. Day tours to Gyeongju and Gyeongnam can raise spending per visitor. Hotels near the port and the beaches also gain from longer stays by cruise passengers. Diversified demand of this kind reduces the city's dependence on a small number of event dates.

Gyeongbuk

Gyeongbuk's growth is led by Gyeongju, its heritage city. The ministry reported about 569,000 foreign tourists in Gyeongju from January to May 2026, up 18.3% [18]. Their spending rose 34.1% to KRW 11.1 billion [18]. Domestic tourists passed 20.97 million over the same period, a 7.1% rise [18]. Event and route products extend that base. A running trip tied to the Gyeongju Cherry Blossom Marathon drew about 540 tourists in April [18], while products sold through Gimhae International Airport link Gyeongju with festivals in Gyeongnam for travellers from Hong Kong [18].

Resident spending is rising in parallel. Domestic travel spending in Gyeongbuk rose 15.9% in 2025 [2]. The share of foreign visitors who reached the province rose from 1.5% to 2.9% between the second quarters of 2025 and 2026 [6]. Gyeongju and Pohang hosted the PATA Annual Summit in May 2026 with about 500 tourism officials from 35 countries [19], which raises the province's profile with trade buyers.

The ministry markets Gyeongju to Taiwanese and Japanese travellers through nearby Daegu International Airport [18]. It also planned familiarisation tours for luxury travel agencies and campaigns with overseas content creators [18]. Conference demand and these air links point to an 8.7% CAGR for Gyeongbuk across 2026 to 2036. The base is still small, because a province with fewer than 3.0% of foreign visitors depends on a few routes and events. Evening programmes and local food can convert one-night visits into two-night stays, which lifts room revenue per visitor.

Seoul

Seoul is the main destination and the main retail centre for foreign visitors. The Seoul Metropolitan Government reported a record 8.23 million international visitors in the first half of 2026, up 21.3% [7]. Their card spending in the city rose 56.8% to KRW 5.6 trillion [7]. Shopping accounted for 46.4% of that spending, and medical and wellness services for 24.4% [7].

Spending is spreading to newer districts. Gangnam-gu and Jung-gu still accounted for 29.3% and 28.4% of foreign card spending [7]. Seongsu-dong ranked second among favourite places in the latest visitor survey at 9.6%, behind Myeongdong at 18.3% [6]. Foreign card spending at large shopping malls in Seoul rose 73.2% to KRW 1.2 trillion over the half year [7]. Beauty spending rose 40.0% to KRW 463.7 billion [7]. The Seoul Spring Festival 2026 drew 7.06 million visitors, including 1.17 million from abroad [7].

Domestic demand in the capital is softer than foreign demand. Residents' travel days in Seoul rose only 2.9% in 2025, below the national rise of 5.4% [2]. Crowding at peak times also weighs on repeat visits. The city plans night tourism along the Hangang River and a one-stop platform for medical visitors [7], both aimed at longer stays and higher spending per trip. Seoul's 8.3% CAGR over 2026 to 2036 therefore rests mainly on spending per foreign visitor. Hotels near Seongsu and Hongdae stand to benefit as visitors spread beyond Myeongdong.

Gangwon

Gangwon depends on domestic weekend and seasonal travel. Residents' travel days in the province rose 10.6% in 2025, one of the strongest gains in the country [2]. The province drew 4.4% of foreign visitors in the April to June quarter of 2026, up from 3.7% [6]. Inbound demand is therefore a small but growing segment.

Winter resorts are adding foreign guests through charter access. Kangwon Land reported about 43,000 foreign guests at High1 Resort in the 2025/26 winter season, up from 28,000 [20]. It linked part of that growth to charter flights through Yangyang International Airport [20]. It also plans a two-day product that links High1 Resort with Danyang in Chungbuk [20]. Theme travel adds a further product line, as shown by a Mode Tour trekking and forest therapy trip in Jeongseon on 31 October and 1 November 2026 [22].

Weak off-season occupancy holds Gangwon to a 7.6% CAGR between 2026 and 2036. Gangwon State and the Gangwon Tourism Foundation offered discounts of up to KRW 30,000 on weekday stays of two nights or more in 2026 [21]. The offer ran through the Yeogi-eottae booking platform in spring and autumn [21]. Ski demand depends on snowfall and on charter capacity at a small airport. Wellness and trekking products can spread demand across the year, although their scale remains modest relative to winter and summer peaks.

Jeju

Jeju's demand is tilting toward foreign visitors. The Jeju Tourism Organization found that foreign visitors stayed 4.79 days on average in 2025 and spent USD 961.3 each [12]. Domestic visitors stayed 3.75 days and spent KRW 639,285 per person [12]. The organization linked a rise in domestic arrivals from July 2025 to a local campaign and travel subsidies [12].

Jeju's share of foreign visitors rose from 9.0% to 10.4% in the second quarter of 2026 [6]. Large resorts are capturing much of that inbound growth. Lotte Tour Development sold 109,233 hotel rooms at its Jeju resort during January to March 2026, up 37.1% [5]. Foreign guests filled 73.5% of its rooms, against 66.8% a year earlier [5].

Island travel depends on air capacity and fuel costs. Soft domestic spending per trip gives Jeju the slowest pace of the five areas, a 7.0% CAGR for 2026 to 2036. The ministry noted higher fuel surcharges from March 2026 [3]. Travel agencies still sell bundled Jeju trips with flights, hotels and car rental [24]. Cruise visitors spent USD 122.1 each in 2025, far below air visitors [12]. Longer shore tours could lift the value of the cruise segment. Repeat domestic visitors also need new reasons to return. The organization found a 90.1% revisit rate among domestic visitors over three years [12], which makes product renewal more valuable than first-time promotion.

Who are the notable companies in the South Korea Tourism Market?

Korean Air, Lotte Tour Development, Hana Tour and Mode Tour illustrate four distinct revenue models in Korean tourism. Korean Air signed a merger agreement with Asiana Airlines on 14 May 2026, with the merger due to take effect in December 2026 [23]. Lotte Tour Development operates an integrated resort in Jeju. Its first-quarter 2026 revenue rose 28.1% to KRW 156.2 billion on stronger casino and hotel sales [5].

Hana Tour and Mode Tour are known mainly for overseas packages, but both sell domestic trips. Hana Tour offers Jeju packages that bundle flights, hotels and car rental [24]. Mode Tour runs small theme trips such as its Jeongseon wellness tour [22]. Their domestic business serves the small share of residents who buy agency products [2].

Guided group travel for foreign visitors is served by specialist operators. G Adventures, Intrepid Travel, The Dragon Trip and Exodus Adventure Travels sell small-group South Korea trips [25][26][27][30]. Local inbound firms such as Korea Private Tours and TNT Korea Travel offer private and customised tours [28][29]. Korea Private Tours has served foreign visitors since 2009 [28]. Group size, language support and price inclusions are the main points of differentiation across these operators.

Key Developments in the South Korea Tourism Market

• On 14 May 2026, Korean Air signed a merger agreement with Asiana Airlines. The merger was scheduled to take effect in December 2026, with the date subject to change [23].

Key Players in the South Korea Tourism Market

• Korean Air Lines Co., Ltd.
• Lotte Tour Development Co., Ltd.
• Hana Tour Service Inc.
• Mode Tour Network Inc.
• G Adventures
• Intrepid Travel
• The Dragon Trip
• Exodus Adventure Travels
• Korea Private Tours
• TNT Korea Travel

South Korea Tourism Market Report Scope

Table 6: South Korea Tourism Market Report Scope

Coverage field	Report scope
Market definition	Spending by domestic and international tourists inside South Korea on accommodation, food and drink, local transport, shopping, attractions, tours and health or wellness services. Overseas travel by residents and international passenger fares are excluded.
Tourist Type	Domestic Tourists; International Tourists
Tour Type	Independent Travelers; Tour Groups; Package Travelers
Booking Channel	Online Booking; Phone Booking; In-Person Booking
Tourism Type	Sustainable; Medical; Sports; Cultural; Culinary; Faith; Wellness; Others
Traveller profile	Consumer Orientation: Men; Women. Age Group: 15-25 Years; 26-35 Years; 36-45 Years; 46-55 Years; 66-75 Years
Regions covered	Capital Area, Gangwon, Chungcheong, Honam, Yeongnam, Jeju
Profiled provinces and cities	Busan, Gyeongbuk, Seoul, Gangwon, Jeju
Companies covered	Korean Air Lines Co., Ltd.; Lotte Tour Development Co., Ltd.; Hana Tour Service Inc.; Mode Tour Network Inc.; G Adventures; Intrepid Travel; The Dragon Trip; Exodus Adventure Travels; Korea Private Tours; TNT Korea Travel
Quantitative Units	USD billion

Source: Future Market Insights analysis of the South Korea tourism market, 2026.

South Korea Tourism Market Research Methodology

The South Korea tourism assessment draws on the national travel survey, inbound arrival statistics, visitor surveys, card spending data and operator disclosures [2][1][6][7]. FMI measures annual tourism spending by residents and foreign visitors inside the country. Segment values are classified by tourist type, tour type and booking channel. Province and city forecasts reflect local arrivals, events, transport links and visitor spending across 2026 to 2036. Arrivals, length of stay and spending per visitor are reviewed as separate measures.

South Korea Tourism Market by Segments

South Korea Tourism Market segmented by Tourist Type:

• Domestic Tourists
• International Tourists

South Korea Tourism Market segmented by Tour Type:

• Independent Travelers
• Tour Groups
• Package Travelers

South Korea Tourism Market segmented by Booking Channel:

• Online Booking
• Phone Booking
• In-Person Booking

South Korea Tourism Market segmented by Tourism Type:

• Sustainable
• Medical
• Sports
• Cultural
• Culinary
• Faith
• Wellness
• Others

South Korea Tourism Market segmented by Consumer Orientation:

• Men
• Women

South Korea Tourism Market segmented by Age Group:

• 15-25 Years
• 26-35 Years
• 36-45 Years
• 46-55 Years
• 66-75 Years

South Korea Tourism Market by Region

• Capital Area
  • Seoul
  • Incheon
  • Gyeonggi
• Gangwon
  • Gangwon
• Chungcheong
  • Daejeon
  • Sejong
  • Chungbuk
  • Chungnam
• Honam
  • Gwangju
  • Jeonbuk
  • Jeonnam
• Yeongnam
  • Busan
  • Daegu
  • Ulsan
  • Gyeongbuk
  • Gyeongnam
• Jeju
  • Jeju

Research Sources and Bibliography

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