In the first quarter of 2020, it was expected that South Korea would see a loss of around 2.9 trillion South Korean won in tourism revenue if the novel coronavirus spreads rapidly in the country. In addition, the number of foreign tourists visiting South Korea was expected to decrease by two million. As of April 19, 2020, South Korea confirmed 10,661 cases of infection.

According to a survey, around 65 percent of South Korea respondents stated that the coronavirus outbreak had a major impact on their leisure travel plans. Also, around 71 percent of respondents believed the outbreak is affecting the national economy.

The spread of COVID-19 in South Korea in the first months of 2020 heavily impacted the number of inbound tourist arrivals. The number of Chinese visitors in the 3rd week of February 2020 went down by 80.4 percent compared to the same week the year before.

As of August 28, 2023, South Korea has confirmed a total of 34,436,586 positive cases of coronavirus (COVID-19), including 35,812 deaths. The first case coronavirus in South Korea was discovered in January 2020. Currently, 25.57 cases per 100,000 people are being confirmed, down from 35.74 cases last month.

Case development trend

In the middle of February 2020, novel coronavirus (COVID-19) began to increase exponentially from patient 31, who was known as a super propagator. With a quick response by the government, the daily new cases once dropped to a single-digit. In May 2020, around three hundreds of new infections were related to cluster infections that occurred in some clubs at Itaewon, an entertainment district in Seoul. Seoul and the metropolitan areas were hit hard by this Itaewon infection. Following the second wave of infections in August, the government announced it was facing the third wave in November with 200 to 300 confirmed cases every day. A fourth wave started in July 2021 from the spread of the delta variant and low vaccination rates. While vaccination rates have risen significantly since then, the highly infectious omicron variant led to a record-breaking rise in cases. This began easing up in March of 2022, though numbers began to rise again around August of 2022. As of October 2022, case numbers are decreasing again.

Economic impact on Korean economy

The Korean economy is interdependent on many countries over the world, so the impact of coronavirus on Korean economy is significant. According to recent OECD forecasts, South Korea's GDP is projected to show positive growth in 2022 and 2023. The first sector the coronavirus impacted was tourism, caused by decreasing numbers of inbound tourists and domestic sales. In the first quarter of 2020, tourism revenue was expected to decrease by 2.9 trillion won. In addition, Korean companies predicted that the damage caused by the losses in sales and exports would be significant. In particular, the South Korean automotive industry was considered to be the most affected industry, as automobile production and parts supply stopped at factories in China.For further information about the coronavirus (COVID-19) pandemic, please visit our dedicated Facts and Figures page.

In 2023, around ****** people were employed in businesses dealing with tourist lodgings and accommodations. Businesses in tourism travel, such as travel agencies, also had a large amount of employees, at a similar amount. The total number of employees within the South Korean tourism industry dropped dramatically with the beginning of the coronavirus (COVID-19) pandemic.

According to a survey in June 2020, around **** percent of surveyed South Koreans stated that it was unlikely for them to go on overseas trips even if the COVID-19 pandemic calmed down. In the same survey, around **** percent of respondents reported that they thought travelling for longer than a day helped them getting through daily life.

According to a survey conducted by Rakuten Insight in South Korea in July 2022, around 49.4 percent of respondents stated that they did not plan on traveling abroad this year. Around one in three planned on going abroad despite the coronavirus (COVID-19) pandemic.

According to a survey conducted among international visitors arriving in South Korea throughout 2023, tourists from the United States had the highest average travel expense, at 3,735.6 U.S. dollars spent per person. Overall, the average tourist spent 2,152.1 dollars that year, down from 3,046.6 dollars in the previous year. Average per capita spending has decreased for most tourists as coronavirus (COVID-19) policies and safety measures loosened in 2022.

Expenditures of Korean Overseas Travelers data was reported at 2,478,900.000 USD th in Feb 2025. This records an increase from the previous number of 2,477,100.000 USD th for Jan 2025. Expenditures of Korean Overseas Travelers data is updated monthly, averaging 547,450.000 USD th from Jan 1975 (Median) to Feb 2025, with 602 observations. The data reached an all-time high of 3,141,600.000 USD th in Jan 2018 and a record low of 1,849.000 USD th in Jan 1975. Expenditures of Korean Overseas Travelers data remains active status in CEIC and is reported by Korea Tourism Organization. The data is categorized under Global Database’s South Korea – Table KR.Q012: Tourism Expenditures of Korean Overseas Travelers. [COVID-19-IMPACT]

This paper explores the impact of the COVID-19 pandemic and the Korean government's fiscal measures on macroeconomic and microeconomic shifts. Utilizing the Global Trade Analysis Project (GTAP) computable general equilibrium model and database version 11, with 2017 as the base year, we aggregated 160 regions and 65 sectors into 9 regions and 18 sectors. The model projected the global economy to 2020 using variables such as real GDP, population, capital stock, and labor supply for a baseline scenario. Two policy scenarios assessed the impacts of the pandemic and a fiscal stimulus package. Results indicated a global decline in real GDP and welfare, with disruptions in supply chains and increased trade costs negatively affecting import and export volumes. Sectors such as tourism were particularly impacted. Specifically, the Korean economy faced a significant negative impact from the pandemic. Despite government fiscal measures that positively influenced real GDP, Korea's real GDP contracted by 1.7% in 2020, deviating from the pre-pandemic growth changes of approximately 2% per year. Welfare losses amounted to US$103 billion, driven by decreased consumer spending and increased unemployment. Export and import volumes fell, leading to a narrower trade deficit of US$17 billion compared to the previous year. The study underscores the need for targeted fiscal measures to mitigate adverse effects, recommending policies to stimulate private household consumption, support affected sectors, and enhance Korea's international trade competitiveness.

According to a survey in June 2020, around 66.9 percent of surveyed South Koreans stated that they felt daily life would be made difficult if the travel restrictions due to COVID-19 continued. In the same survey, around 90.7 percent of respondents reported that they thought travelling for longer than a day helped them getting through daily life.

According to a survey conducted by Rakuten Insight in South Korea in July 2022, around ** percent of respondents who were planning on traveling abroad this year stated that they wanted to do so because they felt safe traveling as they were fully vaccinated. Other common reasons included missing traveling and traveling to a destination which has eased travel restrictions for international tourists.

Austria Tourist Arrivals: Asia: South Korea data was reported at 11,890.000 Person in Mar 2025. This records an increase from the previous number of 10,843.000 Person for Feb 2025. Austria Tourist Arrivals: Asia: South Korea data is updated monthly, averaging 6,884.000 Person from Nov 1997 (Median) to Mar 2025, with 329 observations. The data reached an all-time high of 38,957.000 Person in Jul 2019 and a record low of 9.000 Person in Apr 2020. Austria Tourist Arrivals: Asia: South Korea data remains active status in CEIC and is reported by Statistics Austria. The data is categorized under Global Database’s Austria – Table AT.Q001: Tourist Arrivals. [COVID-19-IMPACT]

GlobalData’s Tourism Source Market Insight – South Korea (2021) report provides a thorough insight into South Korea’s intra-regional and outbound tourism market. The report looks at the profiles of South Korean tourists and summarizes the key reasons that they travel. The report offers an in-depth analysis of traveler flows, spending patterns, main destination markets and current and future opportunities for tourism businesses seeking to tap into the South Korean outbound travel market. It also assesses the impact of the COVID-19 pandemic. Read More

In 2022, the total health expenditure in South Korea accounted for approximately 9.7 percent of South Korea's Gross Domestic Product (GDP). This was a slight increase from the previous year's share, making it the highest share in the past decade. Overall, this share indicates that as the GDP grew, health spending grew at an even faster rate. Korea's GDP per capita was estimated to have dropped to around 32.3 thousand U.S. dollars in 2022, an increase from around 19 thousand dollars in 2009. Meanwhile, overall medical expenditure in 2021 increased by around 7.5 percent compared to the previous year, up to around 93.5 trillion South Korean won. Nearly 60 percent of the costs were covered by the government or the public health insurance system.

Higher health spending is still insufficient

Even though the country has been an OECD member since 1996, health spending as a share of the GDP stayed below the OECD average of 8.8 percent until 2021. Similarly, the government’s health expenses lay at around 60 percent, showing a slight increase from the previous year, but this was still lower than the OECD average of almost 74 percent. The increased expenditure was largely attributed to the introduction of what is dubbed “Moon Jae-In Care”, named after the former Korean president, much like the American Affordable Care Act is colloquially known as “Obamacare”. In short, the government will provide greatly expanded coverage for medical treatments and care, increasing the reimbursement rate of the public health insurance, along with other measures. In addition, the Korean population as a whole is rapidly aging, and more people than before are being hospitalized and receiving examinations. Koreans already see doctors far more frequently than any other OECD nationals.

Strains on health spending and insurance

The Korean national public health insurance system enjoyed seven years of surplus revenue since 2011 but fell into the red in 2018. As noted above, Moon Jae-In Care and the aging population are largely responsible. The years’ worth of revenue is projected to run out in the coming years. Foreigners who come to Korea as medical tourists make things worse, with an all-time high of over 497 thousand medical tourists visiting Korea in 2019, though this has dropped off since the coronavirus (COVID-19) pandemic began.

According to a survey conducted by Rakuten Insight in South Korea in July 2022, around **** percent of male respondents and **** percent of female respondents stated that they planned to travel to Southeast Asia this year. Other popular destinations included Europe, Oceania, and North America.

South Korea was the biggest market for international tourists arriving in the Philippines in 2024, with about 1.6 million travelers. Tourists from the United States came in second, reaching roughly 950,000. Post-pandemic tourism recovery The number of tourist arrivals significantly shows signs of recovery in 2024, at about six million, after the disruptions caused by the onset of the COVID-19 pandemic in 2020. During the pandemic, foreign tourist arrivals dropped to merely 1.5 million people from more than eight million in the previous year. Surprisingly, this figure was even lower in 2021, which was just 0.16 million tourists. The state of domestic travel While foreign tourist arrivals struggled during the pandemic, domestic tourism in the Philippines experienced fewer setbacks. In 2023 alone, about 48 million overnight travelers were recorded, the majority of whom were domestic travelers. Cebu Pacific carried the highest number of domestic passengers in 2023, with PAL Express carrying just about half of the former's passenger volume.

According to a survey conducted by Rakuten Insight in South Korea in July 2022, around ** percent of respondents aged between 35 and 44 years stated that they planned on traveling to Southeast Asia this year. This was the most popular destination among all age groups with the exception of 16 to 24 year olds, who favored Europe.

The Southeast Asian nation of the Philippines is a popular travel destination due to the several islands that form its topography. Tourism is a thriving source of revenue for the country, with the transportation services sector contributing about 710 billion Philippine pesos, which was the largest share of the industry's income in 2023. Post-COVID tourism recovery After the travel restrictions imposed in 2020 until the early months of 2022, the tourism sector in the Philippines has finally shown signs of recovery. International tourist arrivals reached about 5.45 million, up from just 0.16 million in 2021. Tourism receipts also matched 2019 values, with tourism from South Korea and the United States being the country's leading tourist markets. Despite the inbound tourism recovery, domestic tourism expenditures remained the biggest contributor to the industry's revenue. State of outbound tourism In comparison to inbound and domestic tourism, outbound travel contributes the lowest expenditure in the Philippines. Across the different tourism-characteristic industries, spending on outbound tourism was highest for accommodation services, followed by food and beverage. Between May and December 2023, popular destinations for Filipino tourists were Hong Kong, Singapore, and Japan.

In 2024, the average expenditure of tourists in South Korea stood at around 1,005 U.S. dollars per capita. This large decrease in per capita expenditure may be attributed in part to no longer having to deal with the increased costs of quarantine regulations and travel limitations related to coronavirus (COVID-19) upon entry.