Korea must elevate tourism into a strategic industry

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Korea must elevate tourism into a strategic industry

Published: 22 Jul. 2025, 00:04

Audio report: written by reporters, read by AI

Lee Hoon

The author is a professor of tourism at Hanyang University and a co-chair of the National Assembly Tourism Industry Forum

Foreign tourists are becoming an increasingly common sight not only at major attractions in Korea, but also in back alleys, traditional markets and lesser-known neighborhoods. In 2024, approximately 16.4 million international travelers visited Korea, nearly matching the record set in 2019, when 17.5 million came before the pandemic. Expectations are high that the figure will reach 20 million this year.

Despite the apparent recovery, Korea’s tourism industry remains underdeveloped compared to those of its global peers in terms of both size and economic contribution. In 2024, the global tourism sector accounted for roughly 10 percent of total GDP, yet tourism in Korea contributed less than 3 percent. By contrast, Japan’s tourism revenue last year amounted to 8.1 trillion yen ($54.5 billion), making it the second-largest source of foreign income after automobiles. In Spain, tourism contributes as much as 15.6 percent of the country’s GDP.

Foreign tourists receive guidance from a tourism information officer on Myeong-dong Street in Jung District, central Seoul, on the afternoon of July 1. According to the Korea Tourism Organization’s “Korea Tourism Statistics for May 2025” released on June 30, a total of 1,629,387 foreign tourists visited Korea in May, up 14.9 percent from 1,418,463 a year earlier. The number of inbound visitors from January to May reached 7.21 million, marking a 14.7 percent increase from the same period last year. [NEWS1]

Over the years, every incoming Korean administration has promised to boost tourism, recognizing its potential as a next-generation growth engine. The hope is that a more focused and strategic tourism policy could enable the sector to drive new forms of development. Indeed, Korea ranked 14th in the World Economic Forum’s 2024 Travel and Tourism Development Index, signaling its potential. However, the nation ranked only 61st in the “tourism policy and enabling conditions” category, pointing to serious policy coordination issues.

Following the June 3 early presidential election, the new administration under President Lee Jae Myung has pledged to restore policy coherence. Despite protectionist moves by U.S. President Donald Trump in his second term, the Korean stock market has shown signs of resilience. The government has adopted a pragmatic tone, reflected in slogans like “Meoksanism” (a focus on practical welfare) and “jalsanism” (an emphasis on quality of life). Tourism policy, more than most sectors, requires such pragmatism.

In that context, the appointment of a tourism industry expert as minister of culture, sports and tourism is a positive signal. The Lee administration now has a real opportunity to redefine tourism policy. A meaningful goal would be to attract 40 million foreign visitors and generate $40 billion in annual tourism revenue. The government should also support the growth of at least 10 global “travel tech” unicorn companies. Regional tourism must be revitalized to help address rural depopulation and contribute to balanced national development. Moreover, expanding domestic travel options would enhance residents’ quality of life while laying the foundation for peace-oriented tourism initiatives in Northeast Asia, including inter-Korean tourism.

Tourists take commemorative photos at Gyeongbok Palace in Seoul on March 30. [YONHAP]

Japan’s recent success offers a useful model. Beginning in 2012, Tokyo launched a nationwide “tourism-driven nation” initiative based on a solid legal framework. Tourism strategy meetings chaired directly by the prime minister allowed for swift and coordinated action across ministries. Jabpan surpassed 10 million foreign arrivals in 2013. By 2024, that figure had climbed to 36.9 million. Behind this rapid growth was a package of bold, top-level reforms — visa liberalization, open skies agreements, expanded duty-free shopping,

and regulatory easing for accommodation providers — all led from the prime minister’s office.

Korea needs a similarly ambitious overhaul of its policy infrastructure. National tourism strategy meetings have, until now, been held infrequently and with limited authority. To effectively manage this increasingly complex and multisectoral field, the government should establish a permanent tourism council chaired by the president. This body must function as a central governing body, integrating tourism-related functions across ministries, including marine tourism (Ministry of Oceans and Fisheries), medical tourism (Ministry of Health and Welfare), eco-tourism (Ministry of Environment), and visa systems (Ministry of Justice). A senior tourism secretary should be appointed within the presidential office to oversee and coordinate implementation.

″K-tourism Roadshow″ held in Paris on June 22 and 23, 2024 [NEWS1]

Institutional reform must also include legal modernization. Korea’s aging Tourism Framework Act and Tourism Promotion Act should be thoroughly revised to reflect the new landscape. A Korea Tourism Industry Development Agency should be established to lead innovation, support globalization and maximize the potential of Korean cultural content as a tourism asset.

According to the World Travel and Tourism Council, the global tourism industry will reach $16.5 trillion by 2035, accounting for 11.5 percent of global GDP. Tourism is already a major engine of global growth and will become even more important in the decades to come.

The Lee Jae Myung administration must seize this moment to reframe tourism not merely as leisure, but as a core strategic sector and a happiness-driven industry.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.