South Koreans’ card spending in foreign countries hit a record high in the second quarter of this year as more Koreans sought to benefit from a stronger Korean currency against a U.S. dollar when travelling abroad.

According to quarterly data released by the Bank of Korea on Friday, Koreans have spent $3.47 billion with their credit and debit cards in foreign countries in the second quarter ended June, up 5.2 percent from $3.3 billion in the previous quarter.

Overseas card spending increased in the quarter despite the fall in the number of people travelling overseas. According to the Korean Culture and Tourism Institute, the number of outbound travelers in the second quarter came to 5.07 million, down 8.8 percent from 5.56 million in the first quarter.

The increase in overseas card spending was largely attributed to the stronger Korean won. A stronger won against the greenback helps to lower overseas travel costs, stimulating spending when traveling abroad. The U.S. dollar slipped to 1,163.3 won on average in the second quarter, down 3.2 percent, or 37.6 won, from 1,200.9 won in the first quarter.

Koreans’ overseas card spending increased in the quarter even as domestic consumption remained sluggish. According to the Bank of Korea, private consumption in the country in the second quarter grew a mere 0.9 percent from the previous quarter. This suggests that those in the high-income bracket spent more in foreign countries, given the number of outbound travelers declined amid the slowdown in the economy.

Overseas spending per card rose 2.1 percent to $302 in the second quarter from $295 in the first quarter, rebounding after falling for seven consecutive quarters since the second quarter in 2014. The number of cards used in overseas countries in the second quarter increased 3 percent to 11,507,000 from the previous quarter.

According to the data, foreigners spent $2.81 billion in Korea in the second quarter, up 2.9 percent from $2.52 billion in the first quarter.

By Boo Jang-won

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