On the 1st, at a brassware shop in Insadong, Jongno-gu, Seoul. Linda, a 46-year-old from Canada who visited the store, kept saying, "So gorgeous!" Turning on a translator app on her smartphone, she asked the price and then nodded as if satisfied. She soon bought a gleaming brass tray and a spoon-and-chopstick set. Her husband, who was browsing with her, noted, "We usually go out to buy special items, and the exchange rate is also in our favor."
Park Seung-hwan, 67, who runs the brassware shop, said many foreign tourists pay in dollars. He said, "I used to sell a set for $144, but these days I'm selling it for $110," adding, "The exchange rate swings so much that calculating prices each time is a job in itself."
With the won-dollar exchange rate jumping into the 1,500-won range against the U.S. dollar, the so-called "exchange rate sale" effect is appearing among foreign tourists visiting Korea. As the won has weakened, foreign visitors can spend more for the same amount of money.
◇Some even choose to come to Korea after checking the exchange rate
According to the Korea Tourism Organization (KTO), from Mar. 1 to 21, the daily average total tourism spending by foreign tourists was about 49.9 billion won. That is up 19.7% from the same period last year (41.7 billion won). Total tourism spending by foreigners is the sum of payments made with cards issued overseas for travel-related sectors such as lodging, transportation and shopping.
It appears to reflect an increase in foreigners visiting Korea, which has become a "cost-effective" destination. Based on SK Telecom mobile data, the number of foreign visitors averaged about 432,400 per day from the 1st to the 21st of last month. That was up 15.2% (57,200 people) from 375,200 during the same period a year earlier.
Michael Jose, 48, from Australia, met at Seoul Station, said, "We were planning a family trip to one of the Asian countries, but after checking the exchange rate, we chose Korea as the final destination."
Chris Kobierski, 47, an American living in Korea, also said, "The cycle of family and friends visiting Korea from the United States has gotten shorter." He said, "A friend is coming next week, and thanks to the exchange rate, there's more room in the travel budget," adding, "We decided to stay a week with the money we usually spend for four to five days."
However, in dollar terms, the daily average spending by foreign tourists is showing a downward trend. That reflects the weaker won.
According to a survey of inbound tourists, last year a foreign visitor spent an average of $321.9 per day on flights, lodging and other travel in Korea (preliminary). That has continued to fall from $332.9 in 2023 and $326.4 in 2024. The annual average won-dollar exchange rate rose to 1,292 won, 1,305 won and 1,353 won.
Considering that the average won-dollar exchange rate so far this year through this date is 1,466.25 won, foreign tourists' travel costs likely fell further.
◇"Bought cosmetics cheaper than two years ago"
Foreigners who have visited Korea multiple times felt the exchange-rate effect more strongly. Francis Foil, 56, an American met in Myeong-dong the previous day, recalled a 2017 trip to Jeju Island. "I exchanged the same $1,000 back then, too, but this time I was able to carry a thicker stack of won bills," Foil said with a smile.
Based on the average won-dollar exchange rate, when Foil exchanged $1,000 in 2017, it was 1.13 million won. At the current rate, it exceeds 1.5 million won.
Gisela Cannant, 43, an Australian shopping in Myeong-dong the same day, also said, "I bought cosmetics during my visit to Korea in Nov. 2024 and liked them so much that I bought them again this time, and they were cheaper."
The won price of the cosmetics stayed at 26,000 won for two years, but as the won-dollar exchange rate rose from about 1,390 won in Nov. 2024 to around 1,530 won the previous day, the price in dollars fell from $18.7 to $16.9.
However, merchants in commercial districts crowded with foreign tourists said business has not recovered as much as expected. A retail shop owner in Insadong lamented, "Rising prices feel like a bigger burden than the increase in foreign spending."