South Korea’s travel market is having a moment. Again. As the world races to catch up post-pandemic, Korea is not just bouncing back – it’s evolving at a dizzying pace across outbound, inbound, and domestic fronts, powered by hyper-local infrastructure, cultural cool, tech-savvy consumers, and fierce competition between global and local players.
In two vibrant panels at WiT Japan & North Asia 2025, moderated by Agoda’s Timothy Hughes, Korean travel leaders unpacked how a digitally distinctive market, a maturing traveller profile, and the rise of creator-led commerce are redefining the landscape.
The three-way travel boom: Outbound, inbound & domestic
Korea is tracking towards a landmark year. Outbound travel is roaring back, with 7.8 million trips recorded in Q1 2025 alone, on pace to exceed 2019 levels this year. Top destinations remain Japan, Vietnam, and China – with travel between Japan and Korea benefiting from government-backed initiatives on both sides to deepen bilateral tourism.
But it’s inbound travel that’s turning heads. Korea welcomed four million inbound travellers in Q1, led by China, Japan, and Taiwan. Visitors are staying longer, spending more – tourism expenditure reached KRW 2.6 trillion in 2024, a 34% YoY jump. The government has set a bold target of 30 million inbound arrivals by 2030.
On the domestic front, 95% of the population took at least one trip last year. Koreans have embraced short, high-frequency “weekenders” with emotional and wellness-driven experiences – from glamping to hidden beaches on the East Coast.
Digital DNA: Korea’s homegrown tech ecosystem
Korea’s digital infrastructure is uniquely local. As Myunghoon Chung, CEO of GC Company (formerly Good Choice), put it: “The search engine is not Google. The maps aren’t Google. The chat isn’t Meta.” This gives domestic players an agility edge – quick product rollouts, hyper-local UX, and a deeper grasp of nuanced customer needs.
And while no OTA holds more than 40% market share, competition is intense. Local players like GC Company, MyRealTrip, and TIDESQUARE are investing in product diversification and next-gen user engagement. Meanwhile, global OTAs like Agoda and Booking.com are going deeper into Korea’s domestic hotel inventory, filling weekday lulls and leveraging global scale to capture price-sensitive outbound travellers.
“Everyone is there,” said Chung. “Every foreign company is in Korea because outbound is big, domestic is strong, and it’s fiercely competitive.”
Rebranding the King: From Yanolja to ‘Nol Universe’
One of the biggest tremors in the Korean travel space came from Korea’s number 1 travel superapp Yanolja’s recent rebrand to “Nol Universe” (slang for “let’s hang out”) in favour of a sleek new identity. The move consolidates its travel, content, and event services – including Interpark and Triple – into a single ecosystem.
“It’s like Expedia suddenly calling itself Fred,” quipped Hughes. The pivot is part of a bigger ambition: to evolve from an accommodation-focused platform into a full-fledged super app serving Korean lifestyle and leisure.
Commenting on the rebrand, Sunny Chang, Director, Global Business Development, TIDESQUARE, said, “I guess it wanted to reposition itself beyond the local perception of being just a motel booking platform.”
The rise of social commerce and live content
Live commerce is booming, especially in hospitality. Korean hotels are turning to influencers and live-streaming sessions to push exclusive deals. Nayoung Lee, Vice President, Business Core Division, MyRealTrip shared that one hour of live commerce often outperforms a month’s revenue in traditional channels.
Instagram, not TikTok, is Korea’s dominant travel inspiration engine, used by over 25 million (nearly half the population). “70% of Koreans refer to social media for travel planning – far above the global average of 45%,” said Andrew Park, Co-CEO, Travelholic, a media agency working with creators. “What’s trending isn’t iconic landmarks – it’s the hidden towns the algorithm uncovers.”
Gen Z travellers are also redefining the package tour. Forget group flags and fixed itineraries – what’s rising are “semi-packages” designed for the 20s-30s crowd, bundling basic logistics (accommodation, key experiences) with freedom to roam and connect socially. It’s low-cost, flexible, and increasingly cool.
Japan ambitions: Lookout for acquisitions
GC Company’s own journey mirrors Korea’s travel transformation. Launched in 2016, it now leads in user share, brand preference, and revenues, with Chung sharing that revenues had grown 10x and operating income is now at $6 billion.
The company is now eyeing Japan with M&A firepower and local operations.
“We haven’t even scratched the surface,” said Chung. “Japan sees nine to 10 million Koreans a year. Spain sees 70 million from the UK. We can go much bigger.”
The brand’s growth has been fuelled by quick decision-making and deep consumer insight. “If we see a feature needed in the morning, we ship it by the afternoon,” Chung noted. But not every bet worked – restaurant reservation services didn’t scale due to thin margins. The company now invests 40% of its spend in future tech and AI.
AI as infrastructure, not flash
While many companies talk about AI at the surface level, GC Company is embedding it behind the scenes – optimizing pricing, personalizing search, and automating customer service. Chung believes the real opportunity is infrastructure, not hype: “The impact on P&L is immediate.”
As for agentic AI killing OTAs? Chung’s take is pragmatic: “It’s not that simple. The hardest part is not building an agent – it’s managing the pipes, the supply chain, the funnel. OTAs still play a crucial role in demand generation.”
What’s next: Beauty, adventure and new frontiers
Korea’s tourism is also being propelled by adjacent sectors – from plastic surgery to skincare. Medical tourism is growing at 100% year-on-year, with companies like Canneloni attracting beauty tourists from across Asia.
Meanwhile, startups are emerging in AI-powered trip planning and influencer marketing science, further fusing Korea’s strength in tech, commerce, and culture.
For all the change, one thing remains constant: the Korean traveller’s hunger for experiences, from ramen runs in Japan to peaceful hikes in hidden forests like Gamcheon and Tamia.
As Sunny Chang of TIDESQUARE put it: “You have to take people beyond the fried chicken and soju. Korea has so much more to offer and we’re just getting started.”
AloJapan.com