A recent review of the KRW-based Nominal Bilateral Exchange Rate Index (2023=100) suggests that overseas travel has become broadly more expensive for Korean tourists since early 2025, reflecting the weakening of the Korean won against several major destination currencies. Because an increase in the index indicates a depreciation of the won and therefore higher travel costs abroad, the upward movement observed across many currencies points to a gradual decline in Korea’s outbound tourism price competitiveness.
The most pronounced cost pressures have been seen in Europe. The euro-denominated index rose from roughly 106 in January 2025 to above 121 by January 2026, implying that Korean travelers now face travel expenses around 20 percent higher than the 2023 baseline when visiting the euro area. Such a sharp increase is likely to dampen long-haul leisure demand and encourage substitution toward closer and more affordable destinations.
In contrast, Japan has remained the most price-stable major destination. The yen-based index fluctuated around the base level of 100 throughout the period and stood at 99.8 in January 2026, indicating virtually no increase in relative travel costs for Korean visitors. This stability reinforces Japan’s strong price competitiveness and helps explain the sustained expansion of Korea-to-Japan outbound tourism.
Across Asia, the picture is more mixed. China and Taiwan recorded moderate index increases into the low-110 range, signaling gradual cost pressures but not a dramatic loss of affordability. In Southeast Asia, divergence has become clearer. Thailand’s index climbed into the mid-120s by early 2026, suggesting that one of Koreans’ traditionally low-cost destinations is becoming significantly more expensive. By comparison, Vietnam and the Philippines maintained indices close to the base level, preserving their relative affordability for Korean travelers.
Taken together, movements in the KRW-based Nominal Bilateral Exchange Rate Index indicate a reshaping of Korean outbound tourism patterns. With Europe becoming markedly more expensive and Japan and Vietnam maintaining favorable cost conditions, Korean travel demand is likely to concentrate further on short-haul and comparatively affordable destinations in the near term.
