Outbound travelers walk through duty-free shopping zone at Terminal 1 of Incheon International Airport, Feb. 14. Yonhap

Kim Dong-min, a manager in his 40s at a Korean conglomerate, says he has been traveling abroad twice a year with his family since the end of the COVID-19 pandemic, even though his wage has not increased much compared to the surging cost of living.

"My real income may have decreased in recent years but it does not stop my family from going abroad for exotic experiences which we could not enjoy for several years when the pandemic prevailed," Kim said, referring to inflation-adjusted income that has been falling since 2022.

Kim's case illustrates a pent-up travel demand that persists nationwide, which, according to Statistics Korea, contributed to increased spending on travel, hotels and dining out last year, despite the nation's lackluster economy.

The agency's data on household spending in 2024, released Thursday, showed that the average expenditure on travel for more than one person surged by 29.8 percent compared to 2023. Such forms of travel included packaged tours.

The findings come as the country's annual GDP growth is forecast to decelerate to 1.5 percent in 2025, down from 2 percent in 2024, according to the Bank of Korea.

The bleak economic outlook reflects the severity of the worsening conditions affecting people's livelihoods.

A frozen river is crowded with visitors going ice fishing during the annual Hwacheon Sancheoneo Ice Festival in Hwacheon, Gangwon Province, Jan. 6. Yonhap

Under these circumstances, Statistics Korea said that the 29.8 percent increase in group travel expenses in 2024 compared to the previous year "could have been greater if travel demand had not been negatively affected in December," referring to the martial law fiasco on Dec. 3, which led to significant political and social unrest.

With regard to travel accommodation, the spending on hotels, inns, condominiums and other lodging facilities went up 4 percent year-on-year in 2024, compared to a 3.1 percent year-on-year increase in 2023.

The costs of eating out also jumped 5.2 percent from 2023 to 2024, after going up 7.8 percent in the 2022-23 period. The expenses for sports, camping and other leisure activities increased 5.4 percent in 2024 from a year earlier.

"The data shows that the travel boom is not letting up regardless of the economic downturn," Hanyang University economics professor Ha Joon-kyung said.

The professor, however, pointed out that the travel boom is more associated with wealthier households and cautioned that "it should not be misunderstood as if all Koreans are recklessly spending money for leisure without considering their financial situation."

He cited data on quarterly household spending in the final three months of 2024, showing that the top 20 percent of households nationwide spent 10.6 percent more on dining out and travel accommodation compared to the same period in 2023.

Such year-on-year increases were the highest among all five income brackets, including the bottom 20 percent, which saw a 4.5 percent increase compared to the previous year.

The quarterly data showed that salaried income for the bottom 20 percent fell by 4.3 percent compared to a year earlier, marking the steepest decline in any fourth quarter over the past five years.

According to Statistics Korea, the bottom 20 percent includes an increasing number of older adult households who struggle with limited income after retirement and are often forced to work in low-paying jobs.

The agency said the salaried income for the group is likely to decline in the coming years as Korean society is aging faster and older adult poverty rate is rising correspondingly.