China’s Travel Shift: South Korea Emerges as New Bargain Destination Amid Japan Tensions

Published on December 16, 2025

With mounting tensions between China and Japan, the tourism market in South Korea stands out as the next best travel option for Chinese travelers. With a combination of diplomatic disputes and a devalued South Korean currency, a perfect storm is brewing in international travel, and this is attracting a growing number of mainland Chinese travelers to South Korea, a country that is both cultural and affordable.

The Fall of the Won and its Impact on Chinese Tourists

The South Korean won has become Asia’s worst-performing currency in the latter half of 2025, due to an interest rate gap with the United States and sustained equity outflows towards the US market. In October, the won’s real effective exchange rate plunged to a 16-year low, further intensifying the depreciation of the currency.

This fall in the value of the won has made South Korea increasingly affordable for Chinese tourists, especially compared to neighboring countries whose currencies have strengthened. The Chinese yuan gained 9.4 percent against the won between July and mid-December, making South Korea an increasingly attractive destination for budget-conscious travelers.

“The weaker won has made South Korea a better-value destination for Chinese travelers at the same time Japan has become politically ‘expensive,’” said Subramania Bhatt, CEO of China Trading Desk, a travel marketing firm. This currency fluctuation, combined with the growing political tensions between China and Japan, is reshaping the travel choices of Chinese tourists.

China-Japan Diplomatic Row Fuels Travel Shift

The root of this shift can be traced back to the growing diplomatic tensions between China and Japan. In early November 2025, Japanese Prime Minister Sanae Takaichi made remarks suggesting that Tokyo might intervene in the event of an armed conflict in the Taiwan Strait. This sparked a diplomatic dispute with Beijing, which in turn led to Chinese authorities advising their citizens to avoid travel to Japan.

Japan, traditionally a popular destination for Chinese tourists, became increasingly “expensive” in light of the political tensions. As a result, Chinese travelers began rethinking their vacation plans, with many opting for other destinations in Asia. This has opened up opportunities for countries like South Korea, Russia, and several Southeast Asian nations to welcome an influx of Chinese tourists.

After China issued its travel warning for Japan, South Korea quickly became the most popular destination for Chinese travelers on the Qunar travel platform, replacing Japan in flight bookings for the weekend of November 15-16. The political shift combined with favorable exchange rates positions South Korea as a more affordable and politically neutral alternative for Chinese tourists.

The Economic and Cultural Appeal of South Korea

South Korea has long been a favorite destination for Chinese tourists due to its vibrant culture, history, and proximity. However, the slump in the won has made it even more appealing to budget-conscious travelers looking to explore the country’s world-renowned K-pop culture, beauty products, and shopping opportunities.

According to travel industry analysts, the weak won allows Chinese visitors to indulge in luxury items like Korean cosmetics, fashion, and entertainment without the usual price tag. “Chinese consumers have become increasingly price-sensitive since the Covid-19 shock, especially given domestic inflation that is much lower than global levels,” said Gary Ng, senior economist for Asia-Pacific at Natixis, a French investment bank.

South Korea is also benefitting from cultural tourism, with the popularity of Korean pop culture (K-culture) and the global fascination with Korean music, films, and television shows drawing large numbers of Chinese tourists. The country’s booming entertainment and beauty industries are expected to continue attracting travelers, who are eager to experience these phenomena firsthand.

Boosting Tourism Through Diplomatic Relations

Beyond currency advantages, improved diplomatic ties between China and South Korea are contributing to the uptick in Chinese tourism. In October 2025, Chinese President Xi Jinping made a historic visit to South Korea, marking the first time in 11 years that a Chinese leader attended the Asia-Pacific Economic Cooperation (APEC) forum in Seoul. During his visit, President Xi and South Korean President Lee Jae-myung held a bilateral meeting focused on fostering stronger ties between the two nations.

One of the key areas of cooperation discussed was tourism, with both countries signaling a strong commitment to boosting tourist exchanges. The introduction of mutual visa-free policies between China and South Korea has further facilitated travel, removing barriers and making it easier for Chinese tourists to visit the country.

These positive diplomatic signals are expected to continue fueling tourism flows, with millions of Chinese visitors traveling to South Korea in the coming years. In fact, according to data from the Korean Tourism Organization, 4.7 million Chinese tourists visited South Korea in the first 10 months of 2025, surpassing the total number for the whole of 2024. This growth shows that South Korea is increasingly becoming a prime destination for Chinese travelers.

Implications for Regional Travel and Tourism

The shift in Chinese travel patterns is likely to have a significant impact on regional tourism dynamics. Countries like South Korea and Russia are benefiting from the political tensions between China and Japan, while Southeast Asia is also seeing increased interest from Chinese tourists looking for alternative destinations.

For South Korea, the continued weakness of the won and growing interest from Chinese tourists could boost the local economy, particularly in sectors related to shopping, entertainment, and beauty products. The tourism sector is set to continue its upward trajectory, with an expected increase in spending by Chinese tourists on both luxury goods and cultural experiences.

South Korea’s Strategic Advantage in Regional Tourism

Chinese travel behavior changes are also expected to greatly influence the region’s tourist trend. South Korea, Russia, and other nations are reaping benefits due to the political tensions between China and Japan, while Southeast Asia is also witnessing a growing interest in alternative destinations among travelers from China.