BTS’s Gwanghwamun Concert Helps Korea Turn Travel Balance into a Surplus for First Time in 11 Years

The domestic tourism market has reached a historic turning point. In March, South Korea’s travel balance turned positive for the first time in 11 years and 4 months, with BTS’s concert in Gwanghwamun believed to have played a key role in driving this change. The travel balance for March recorded a surplus of $140 million. This marked the first surplus since November 2014, when the surplus was $50 million, after 136 months of deficits.

A positive travel balance occurs when income from tourism increases significantly while expenses for traveling abroad decrease. In March, tourism revenue reached $2.6958 billion, a 68.3% increase from the previous month’s $1.617 billion and a 60.1% rise compared to the same period last year. It represented the highest figure ever recorded since relevant statistics began in 1980. Of this total, regular tourism revenue accounted for the largest share, rising by 70.2% from $1.5559 billion in February to $2.6488 billion in March. Meanwhile, tourism expenditure in March was $2.5607 billion, a decline of over 10% from the previous month’s $2.858 billion.

The sharp increase in the number of foreign visitors is at the core of these changes. In March alone, 2.046 million foreign tourists entered South Korea, surpassing 2 million for the first time in history. During the same period, 2.294 million Koreans traveled abroad. Compared to February, the number of inbound visitors increased by 42.9% to 1.431 million, while the number of outbound travelers decreased by 17.2% to 2.769 million, significantly narrowing the gap between arrivals and departures.

BTS’s Comeback concert, “Arirang,” held on March 21 at Gwanghwamun Square in Jongno-gu, Seoul, is considered a major factor behind these changes. The Bank of Korea analyzed that the surge in inbound visitors occurred around the time of BTS’s concert, coinciding with the peak spring tourism season from March to May. A Bank of Korea official said, “It is difficult to confirm exactly which foreigners came to watch BTS’s concert,” but added that it likely had some impact on turning the travel balance positive. Rising spending on accommodation, dining, and shopping is believed to have contributed, as evidenced by the significantly higher crowds of foreigners in major tourist areas like Myeongdong compared to usual levels.

A strong currency exchange rate also played a role in improving the travel balance. During March, the won-dollar exchange rate fluctuated between the late 1400s and 1500 per dollar, rising to 1,530.1 per dollar by the end of the month based on weekly closing prices. When the exchange rate rises, it makes it relatively cheaper for foreigners to travel to South Korea, while increasing the cost for domestic tourists to go abroad.

This improvement in the travel balance was one of the factors contributing to a strong overall current account balance in March. The current account recorded a surplus of $37.33 billion, reaching the highest level on record. The goods trade balance showed a surplus of $35.07 billion, with exports rising to $94.32 billion, a 56.9% increase from the same period last year. In particular, information technology products such as semiconductors and computer peripherals drove the export growth, with semiconductor exports soaring by 149.8% and computer peripheral exports increasing by 167.5%.

However, the outlook is not entirely positive. High oil prices resulting from the Middle East war pose a risk factor. The price of imported crude oil rose sharply from $75.4 per barrel in March to $112.3 per barrel in April, an increase of about 45%. The Bank of Korea warned that if rising energy prices persist, they could exert downward pressure on the annual current account balance.