Koreans` overseas spending dips in 2008 on weaker won

SEOUL, April 2 (Yonhap) -- Overseas spending by South Koreans declined for the
first time in five years last year as a weaker won and the slumping economy
discouraged people from traveling, the central bank said Thursday.
South Korean residents spent 16.3 trillion won (US$12 billion) overseas last
year, down 10.8 percent from the previous year and marking the first yearly
decline since 2003, data released by the Bank of Korea (BOK) showed.
Koreans' overseas spending surpassed the 10-trillion won mark for the first time
in 2002. That figure declined to 9.9 trillion won in 2003 but has since been on
an upward trend, peaking at 18.3 trillion won in 2007, it added.
The central bank attributed the fall to the local currency's weakness against the
U.S. dollar and the sharply slowing economy.
The Korean currency declined 25.7 percent against the greenback last year,
becoming one of the worst performing currencies. The local economy, Asia's
fourth-largest, shrank 5.1 percent last quarter from the three months prior, the
sharpest fall in 11 years, due to tumbling exports and sluggish domestic demand.
Meanwhile, non-residents -- including foreigners and Koreans with foreign
residency -- spent 8.03 trillion won in Korea in 2008, up 67.9 percent from a
year ago, as a weaker won lured tourists and tempted travelers to spend more. The
2008 figures breached the 8 trillion won level for the first time, the BOK added.
sooyeon@yna.co.kr
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