Is Overseas Card Spending in South Korea Reaching New Heights in Q3 Due to Travel Surge?
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Synopsis
In a remarkable turn of events, South Koreans have recorded their highest overseas card spending ever, driven by a surge in travel during the summer vacation period. This article explores the factors contributing to this unprecedented spending and its implications on the economy.
Key Takeaways
- Overseas card spending reached a record high of $5.93 billion.
- Spending increased by 7.3 percent from the previous quarter.
- Outbound travel rose by 4.8 percent to 7.09 million.
- Credit card and debit card spending increased by 7.4 percent and 7.3 percent, respectively.
- Online shopping spending decreased slightly by 1.2 percent.
Seoul, Nov 25 (NationPress) The overseas card expenditures by South Koreans have soared to an unprecedented level in the third quarter, fueled by rising travel during the summer vacation season, as revealed by data released on Tuesday.
Spending via overseas credit and debit cards hit a staggering $5.93 billion between July and September, marking a 7.3 percent increase compared to the previous quarter, according to the Bank of Korea (BOK) data reported by Yonhap news agency.
The earlier peak was $5.71 billion in the same quarter of 2024.
"This surge is primarily due to the heightened appetite for international travel during the summer break, while spending on overseas online shopping has remained relatively stable compared to the last quarter," a BOK representative stated.
Official figures indicate that the number of travelers heading abroad rose by 4.8 percent quarter-on-quarter to reach 7.09 million in the third quarter, while credit card purchases for overseas online shopping dipped by 1.2 percent to $1.53 billion.
In terms of card types, credit card spending increased by 7.4 percent and debit card spending rose by 7.3 percent compared to the previous quarter.
On another note, spending by non-residents in South Korea reached $3.76 billion in the third quarter, slightly down from the $3.79 billion recorded in the second quarter, which had seen an all-time high.
Meanwhile, South Korean stocks experienced a rise late Tuesday morning, spurred by renewed optimism regarding a potential interest rate cut in the United States.
The Korea Composite Stock Price Index (KOSPI) climbed 36.91 points, or 0.96 percent, reaching 3,882.97 as of 11:20 a.m.
Overnight, some dovish remarks from Federal Reserve members and alleviated concerns over inflated AI valuations boosted major U.S. stock indices.
The Dow Jones Industrial Average rose by 0.44 percent, while the Nasdaq Composite surged 2.69 percent.
In Seoul, technology and defense sectors led the positive momentum.
Point of View
It's crucial to highlight the significant impact of rising overseas spending on the South Korean economy. This trend reflects not just a rebound in travel but also a broader consumer confidence that could influence future financial policies and economic growth. With the ongoing recovery from pandemic-related disruptions, such insights are invaluable for understanding market dynamics.
NationPress
25/11/2025
Frequently Asked Questions
What was the total overseas card spending by South Koreans in Q3?
In the third quarter, South Koreans' overseas card spending reached a record $5.93 billion.
What drove the increase in overseas card spending?
The increase was primarily due to higher demand for overseas travel during the summer holiday period.
How did online shopping spending change?
Overseas online shopping spending with credit cards decreased by 1.2 percent to $1.53 billion.
What is the outlook for South Korean stocks?
South Korean stocks were trading higher, boosted by optimism regarding possible interest rate cuts in the U.S.
Did the number of outbound travelers increase in Q3?
Yes, the number of outbound travelers rose by 4.8 percent to 7.09 million in the third quarter.
