Koreans tighten spending even during summer vacation

Vacationers enjoy the summer at Gyeongpo Beach in Gangneung, Gangwon Province, July 30. Yonhap

Kim Sang-choon, a man in his 50s who spent his summer vacation this year in Gangneung, Gangwon Province, said his family stayed at a budget-friendly guesthouse with a kitchen, bought groceries at a traditional market and made all three meals a day himself instead of dining out.

Kim said this style of travel is somewhat unusual in Gangneung, a coastal city known for its vibrant restaurant scene, where many visitors eagerly open their wallets for gourmet dishes like raw fish, soft tofu stew, buckwheat noodles, potato dough soup and stuffed squid.

“But considering the high cost of living, I really wanted to cut down on vacation expenses and I’m quite satisfied with this cost-effective way of traveling,” he said.

Kim represents a growing number of budget-conscious travelers this year, as inflation shows no clear signs of slowing after a brief dip.

According to Statistics Korea, consumer prices rose 2.2 percent in June from a year earlier and 2.1 percent in July, once again exceeding the Bank of Korea’s inflation target of 2 percent.

This follows a brief slowdown to 1.9 percent in May, after inflation had stayed above the central bank's target for four consecutive months earlier this year.

As another way to save on travel costs, vacationers are choosing shorter trips and domestic destinations over international travel.

A Korea Chamber of Commerce and Industry survey conducted in June found that 83.5 percent of 800 office workers nationwide preferred domestic travel.

As for the duration, 38.9 percent of respondents chose two nights and three days, followed by 22.7 percent who preferred three nights and four days and 21.3 percent who opted for one night and two days.

“The latest trend toward shorter, nearby vacations is notable, especially as Koreans have been granted longer holidays in recent years,” a professor at Kyung Hee University’s College of Hotel & Tourism Management said on condition of anonymity.

The professor noted that the government has increasingly designated regular working days as temporary holidays in recent years to encourage more people to rest. These temporary holidays typically fall between weekends and national holidays, creating extended breaks that often last longer than a week.

However, the effectiveness of this policy has been debated, as many people spent their entire vacation abroad, contrary to the government’s intent to stimulate domestic consumption.

Under these circumstances, circumstances, the professor speculated that preference for shorter, nearby vacations may continue to grow, as the government plans to issue 800,000 discount coupons for accommodations.

The coupons will be distributed on a first-come, first-served basis starting Aug. 20, and can be used at hotels and other lodgings outside of Seoul and the greater capital region.