South Korea’s tourism industry was hit hard by the COVID-19 pandemic, but has been showing a rapid recovery since 2022 and is entering a new phase of transition. As of the end of 2024, the number of international tourists has recovered to approximately 88% of the 2019 level, and international tourism revenue has reached 97% of the pre-pandemic level (UN Tourism, 2025). The number of foreign tourists visiting the country reached approximately 16.37 million, which is 94% of the pre-pandemic level and a 48% increase from the previous year (Tourism Knowledge Information System of the Korea Culture and Tourism Institute). Additionally, as of 2024, the domestic travel experience rate and the number of outbound travelers among South Korean citizens have reached levels close to or exceeding those of 2019.

e status of South Korea's tourism industry, when examined focus on tourism businesses, is as follows: As of 2023, the number of tourism businesses registered under the Tourism Promotion Act increased by 10.6% year-on-year to 38,712, with approximately half of these businesses operating in the travel services sector. Approximately 45% of all tourism businesses are located in the Seoul Metropolitan Area (Ministry of Culture, Sports and Tourism, 2024).
In 2023, the total revenue of the tourism industry was KRW 24.4 trillion, an increase of 40.5% from the previous year, which is about 90.9% of the level before the outbreak of COVID-19 in 2019 (Ministry of Culture, Sports and Tourism, 2024). The figures suggest that tourism demand, which had declined sharply during the pandemic, has entered a full-fledged phase of recovery. Looking at the 2023 revenues by sector, the accommodations sector accounted for the largest share at approximately KRW 10.6 trillion, followed by the travel sector at KRW 3.9 trillion and the casino sector at KRW 2.7 trillion (Ministry of Culture, Sports and Tourism, 2024). The trends of annual revenues show that the travel services, casino, and international conference sectors did not see their revenues recover in 2023. In summary, South Korea's tourism businesses are concentrated in the Seoul Metropolitan Area, the tourism industry's revenue structure is dominated by the accommodations sector, which is showing a trend toward recovery to pre-COVID-19 levels.

From the perspective of demand, tourism demand in South Korea and around the world is shifting from group travel to individual travel, and is transitioning to experience-oriented and regional-level tourism. In addition, with the advancement of digital technology, online travel agencies (OTA) are growing, and the use of artificial intelligence (AI) technology, social media, and media art is rapidly spreading. More specifically, more people are searching for, booking, paying for, and uating tour products online, strengthening the global market dominance of OTAs such as Booking Holdings, Inc., Expedia Group, Airbnb, and Trip.com Group (Heeja Ahn and Heejeong Han, 2024). In South Korea, local OTAs, such as Yanolja and GC Company (Yeogi Eottae), are rapidly growing following the market entry of global OTAs.

In 2025, the number of international travelers is expected to grow by 3–5% compared to 2024 (UN Tourism, 2025), indicating that overall tourism demand is recovering. However, factors such as high inflation, rising accommodation and transportation costs, the worsening of climate change, and a shortage of tourism workers are likely to continue to limit the recovery of tourism demand.
The tourism industry is undergoing changes such as the adoption of new technologies including artificial intelligence, increasing demand for sustainable tourism, growing interest in new tourist destinations, and the spread of consumption trends centered on value-driven spending (UN Tourism, 2025). As a result, tourism products, services, and related companies that respond to these changes are expected to thrive. Furthermore, global OTAs are expected to keep yielding strong influence. They are strengthening their dominance in tourism distribution channels by leveraging their vast user base, data, capital, advanced personalized services, and global networks (Heeja Ahn and Heejeong Han, 2024). This platform-centered restructuring is intensifying competition between countries and companies. Furthermore, the active market entry of companies from non-tourism industries such as online commerce, finance, and transportation are blurring the boundaries between industries.
The tourism industry operates through organic connections with various suppliers such as accommodation, transportation, tours, and activities, and the consumption of tourists is directly linked to revitalizing regional economies and creating jobs. Therefore, tourism is recognized as an industry playing a crucial role in national and regional economies (Heeja Ahn and Heejeong Han, 2024)
In light of these changes, the South Korean government has established key policy directions, including the promotion of experience-oriented tourism linked to K-content (music, food, culture, etc.), the expansion of AI and big data-based smart tourism, and the upgrade of high-value-added tourism content such as wellness and gastronomy. Additionally, the government is striving to make the tourism industry more sustainable and globally competitive by introducing comprehensive policy measures, including efforts to attract more foreign tourists, support the growth of tourism ventures and regional tourism companies, and digitalize and upgrade tourism infrastructure.

Foreign companies are entering the domestic tourism market in various fields, including multi-purpose resorts, global hotels, and theme parks. Notable examples include Jeju Shinhwa, Incheon Inspire, and Legoland. These companies are creating tourism infrastructure through large-scale investments and generating positive effects on the local economy.
In addition to direct entry, global hotel chains such as Marriott, Hilton, and Accor are continuing to expand their businesses through franchising or management contracts in major cities in South Korea. Recently, South Korean tourism companies have been expanding their overseas operations by partnering with global airlines and tech companies, and K-tourism startups are connecting more closely with the global market (Maeil Business Newspaper, October 17, 2023).
On the other hand, some foreign investment projects have been canceled due to issues such as business viability and delays in obtaining permits, highlighting the ongoing need for legal framework improvements and the creation of a stable investment environment.