[Yanolja Research Insights Vol. 32] Korea, the Close Yet Distant Destination: Why Domestic Travel Lost Its Spark?

Why Are Koreans Choosing Overseas Travel? The Real Reasons Behind the Shift

For Koreans, travel is no longer an occasional special event — it has become deeply ingrained as part of everyday life.

Yet recent patterns reveal a structural shift in travel spending, moving decisively from domestic trips toward overseas destinations. This shift is not just a challenge for the tourism sector; it has become a critical national economic issue that requires strategic attention.

In this issue, we explore:

✅ The psychological motivations driving Koreans toward overseas travel

✅ The fundamental reasons domestic trips are undervalued

As the pent-up demand following the COVID-19 pandemic was unleashed,

the number of outbound travelers reached 28.68 million in 2024, fully returning to pre-pandemic levels. With 14.56 million departures recorded in the first half of 2025 alone, the annual figure is almost certain to hit a new record.

But this massive trend came with a clear economic consequence: Korea recorded a tourism trade deficit of roughly USD 10 billion. Koreans spent USD 26 billion overseas — meaning that if even a fraction of this spending had remained onshore, it could have generated substantial economic value domestically.

Koreans choose overseas trips for reasons that go far beyond simple holidays. Underlying their decisions is a strong desire for new and unique experiences.

For many Korean travelers, an overseas trip is perceived as an investment in experiential value — an opportunity to expand one’s perspective, encounter unfamiliar cultures, and gain meaningful stories worth sharing. Travelers are willing to pay more for these intangible rewards.

Domestic travel, on the other hand, continues to be perceived as functional consumption. Proximity, convenience, and lower cost offer practical advantages, but these factors also limit expectations and willingness to spend. As a result, domestic trips are not seen as aspirational, but simply as a “realistic alternative.”

This perception is clear in Yanolja Research’s survey of overseas travelers: most respondents expressed willingness to spend only 30–50% of their overseas travel budget on domestic trips.

Consumers’ dissatisfaction with domestic travel largely stems from three areas:

1️⃣ Mismatch Between Price and Quality

 • Hotel and dining prices rival those abroad, but satisfaction with service and facilities remains low. Excessive “peak-season pricing” has further eroded trust.

2️⃣ Lack of Distinctive Content

 • Travel activities are limited to eating, sightseeing, and visiting cafés — leading to similar, storyless experiences across destinations.

3️⃣ Concentration of Tourism Demand

 • Trips are clustered in a few regions such as Seoul, Jeju, and Busan. A lack of information, accessibility, and attractions in other areas makes it difficult for travelers to explore new destinations.

The revival of domestic tourism cannot be achieved through simple promotions or discount campaigns. The core challenge is to redesign the experiential value of domestic travel.

Domestic destinations must break away from being framed as substitutes for overseas trips and instead become objects of genuine desire — places travelers actively choose for their unique appeal.

When domestic travel achieves this shift, Korea’s tourism landscape will enter a new phase of growth.

Yanolja Research explores strategic directions for this transformation in Insights Vol.32, presenting a roadmap for restoring the competitiveness of domestic tourism.

👉 For deeper insights, check out the full paper below. 

Vol. 32: Motivations for Overseas Travel and Strategies for Revitalizing Domestic Tourism in Korea

🙌 Want more? Watch the full video on our YouTube channel! 🙌