Travel, int'l education, outsourced healthcare contribute to rise
South Koreans' overseas spending as a percentage of overall consumption surpassed the 5-percent mark during the third quarter of this year for the first time. According to data from the Bank of Korea announced on December 3, overall household consumption during the third quarter of this year reached about 91 trillion won (US$92 billion) and about 5 trillion won from that amount was spent overseas. This marks the first time overseas spending exceeded 4 trillion won in a given quarter. Overseas spending by South Koreans amounted to 4.34 percent of overall consumption in the first quarter of this year and 4.17 percent in the second quarter, exceeding the 5-percent mark in the third quarter. Such an increase was caused by seasonal factors, as travel and overseas education expenditures jumped in July and August. The use of overseas medical services has also contributed to the growth of overseas spending. It is usual for overseas spending in Korea to be higher in the third quarter than any other time of the year. In 2005, overseas spending during the third quarter was 4.56 percent, and reached 3.37-3.87 percent during the rest of the year.Overall, South Koreans' spending overseas has been on the rise. By quarterly average, international spending amounted to between 1.82-2.65 percent in 2000, increasing to 2.43-3.36 percent of total consumption in 2002 and 3.05-3.77 percent in 2004, making another rise in the first three quarters of this year to 4.17-5.10 percent in 2006. Regarding the increasing trend, the Bank of Korea said that while growth in overseas spending is inevitable in the age of globalization, it could hinder domestic consumption. Please direct questions or comments to [englishhani@hani.co.kr]
