I was originally going to attend the wedding alone and come right back, but the yen has gotten much cheaper. Since I'm going to Japan anyway, I decided to travel a few more days with my family.
Lee, a 30-year-old office worker who plans to attend a friend's wedding in Okinawa, Japan, in Nov., has recently been planning a family trip as well. After checking airfare and lodging, Lee judged that, thanks to the weaker yen, the expense burden would not be big even if the family stayed a few more days.
As the won-yen exchange rate fell to the 850-won range per 100 yen, demand for travel to Japan is heating up again. People ahead of trips are exchanging currency in advance before the yen rises further, and even those without immediate plans to go to Japan are buying yen in hopes of a rebound later.
◇ Save 120,000 won in three months when exchanging 100,000 yen
According to Hana Bank on the 2nd, the won-yen rate in the Seoul foreign exchange market fell intraday to 854.13 won per 100 yen. It is the lowest level since Nov. 2023. Compared with the record high this year of 974.62 won on June 5, it dropped more than 12% in about three months.
Looking at the exchange rate alone, travel expense to Japan fell by that much. In a simple calculation, exchanging 100,000 yen required about 970,000 won in early June, but at the current rate it takes about 850,000 won. Even if you spend the same amount in Japan, the exchange-rate difference alone would save about 120,000 won.
In fact, the number of Koreans visiting Japan is rising quickly. According to the Japan National Tourism Organization (JNTO), 894,700 Koreans visited Japan in July, up 31.9% from the same month last year. It is the largest figure on record for July.
Japan tripled the international tourist tax in July from 1,000 yen to 3,000 yen per person, but the cost-saving effect from the weak yen has offset much of that, and enthusiasm for travel to Japan continues.
◇ Before the yen rises further… exchanging travel funds in advance
More people are buying yen ahead of their trips. A 32-year-old office worker surnamed Jeong, who plans a trip to Osaka next month, exchanged half of the expected travel funds into yen on the 1st.
Jeong said, I had been exchanging bit by bit since it was in the 880-won range per 100 yen, and when I saw it drop to the 850-won range, I converted about half, adding, I plan to change the rest little by little whenever the yen falls further.
On social media and travel-related online communities, posts have recently been viewing the weak yen as a chance to travel to Japan. People are sharing lists of major Japanese destinations and items to buy locally, or posting questions about the right timing for exchange. On a post saying, I want to go to Japan while the yen is cheap, but I don't have time right now, comments have appeared along the lines of, Even if you can't travel, start setting aside some yen.
◇ Buying yen even without travel… demand for "yen-tech" is also increasing
Even among people without plans to travel to Japan, there is movement to buy yen. The idea is that the yen is undervalued, so they buy in advance and later, if the yen strengthens, convert back to won to gain exchange profits—so-called "yen-tech."
As of the 25th of last month, yen deposits at the five major banks—KB Kookmin, Shinhan, Hana, Woori and NH Nonghyup—totaled 1.3456 trillion yen. That surpasses the record high of 1.2705 trillion yen set during the so-called "super weak yen" in June 2024.
A 38-year-old office worker surnamed Hwang has also been buying yen in partitions recently. Hwang said, Whenever I feel the exchange rate has moved excessively, I tend to convert into dollars or yen, and these days I'm buying yen, adding, Rather than buying at once, I plan to buy in portions and aim for exchange gains later.