Korea’s travel account deficit with Japan hit record high in 2025, BOK finds

Koreans spent far more on trips to Japan than Japanese tourists spent here last year, when the gap hit a record high, according to Bank of Korea data.

Korea recorded a travel account deficit of $5.71 billion with Japan last year, the largest since record-tracking began in 1998, according to the central bank on Tuesday.

The deficit has deepened steadily since international travel resumed after the Covid-19 pandemic.

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Travel restrictions during the pandemic briefly pushed Korea into a travel surplus with Japan, with surpluses of $369 million in 2020 and $130 million in 2021. But the balance slipped back into deficit in 2022, with the shortfall reaching $576 million. The deficit stood at $4.07 billion in 2023 before widening to $4.91 billion in 2024.

The imbalance reflects the surge in Korean tourists visiting Japan, with the weak yen pushing the imbalance wider while the number of Japanese visitors to Korea has barely budged.

A record 9.46 million Koreans visited Japan last year, up 7.3 percent from the previous year, according to the Japan National Tourism Organization. By comparison, only 3.65 million Japanese travelers visited Korea in the same period.

The imbalance was also reflected in travel spending. Koreans spent $8.44 billion on trips to Japan last year, while Japanese visitors spent just $2.74 billion in Korea.

The trend stands in contrast to Korea's broader tourism developments.

Korea posted a travel account surplus of $140 million in March and ended a streak of monthly deficits that lasted more than 11 years. The turnaround was driven by stronger inbound tourism, with K-pop performances and other events attracting more visitors from abroad.

Although the travel account slipped back into a $30 million deficit in April, the shortfall narrowed from a year earlier as monthly arrivals topped 2 million.

Among major markets, Korea posted a travel account surplus of $3.77 billion with China and a surplus of $25.5 million with Latin America last year.

The deficit with Japan stood out even against those with the United States at $4.71 billion, Southeast Asia at $2.05 billion and the European Union at $912 million.

Industry analysts attributed the growing demand for Japan to the yen's prolonged depreciation and increased flight capacity.

The weaker yen, meanwhile, has discouraged Japanese consumers from overseas travel as it has increased the cost of foreign trips.

Industry observers expect more Japanese tourists to visit Korea once Japan lowers passport fees next month. Japan’s foreign ministry recently announced that the fee for a 10-year passport for adults will be reduced by about 43 percent, from 16,300 yen ($100) to 9,300 yen.

The move is reportedly aimed at giving younger Japanese more opportunities to gain international experience and helping cultivate globally minded talent, as overseas travel among Japanese continues to decline.

“Korea is already one of the most popular overseas destinations for Japanese travelers,” a travel industry source said. “Cheaper passports could lead to an increase in inbound Japanese travelers to Korea.”

BY OH HYO-JEONG [[email protected]]