South Korea Launches Two-Track Plan to Boost Tourism Demand and Stabilize Industry Funding

By KI SU JEONG Posted : May 6, 2026, 09:12 Updated : May 6, 2026, 09:12
Foreign tourists visit Haeundae Beach in Busan. [Photo by Yonhap]
The government is rolling out a two-track strategy to support South Korea’s tourism ecosystem, which has been hit by high oil prices and weak domestic demand. The plan aims to draw more foreign visitors to regional destinations to create new demand, while providing large-scale loans to cash-strapped tourism businesses to stabilize the industry’s supply chain.

◆ Steering foreign visitors to the regions with tailored transport options

The Ministry of Culture, Sports and Tourism, led by Minister Choi Hwi-young, and the Korea Tourism Organization, headed by President Park Sung-hyuk, are running a regional tourism promotion campaign with global online travel agency Klook through June 3.

To address what officials have cited as the biggest barrier — transportation convenience — the campaign expands booking access through Klook’s app and website. Foreign travelers can check real-time train schedules and seat availability across all Korail routes and make reservations. The service supports about 20 languages, 40 currencies and simplified payment options.

During the campaign, Korail will release a limited-edition Railplus card. The tourism organization will provide a 6,000-won discount coupon, and Klook will offer a free travel eSIM.

Starting in June, the government will also expand online booking channels for express and intercity buses. Foreign bus ridership in the second half of last year totaled 1.058 million, up 28.3% from 825,000 a year earlier, but travelers reported inconvenience due to low awareness of booking platforms.

◆ 437.5 billion won to stabilize the supply chain

Alongside demand measures, the ministry is accelerating financial support to help the industry maintain basic capacity. The move is intended to limit damage to tourism businesses facing higher costs as elevated oil prices persist, including due to the fallout from the war in the Middle East.

Of 200 billion won secured through a supplementary budget, the ministry will add 100 billion won to first-half loans from the Tourism Promotion and Development Fund. That raises planned first-half lending to 437.5 billion won from 337.5 billion won, effective immediately starting May 6.

For the second half, the ministry plans to provide 370 billion won in loans by adding 70 billion won in remaining supplementary funds to the previously planned 300 billion won.

◆ Separate 30 billion won allocation for tourism startups

The ministry is also offering targeted support for early-stage companies to promote longer-term innovation in the tourism industry. It set aside 30 billion won in separate “tourism startup loans” for small and midsize tourism businesses that are less than seven years old.

The loans will be available through an always-on loan support center, with limits of 3 billion won for new construction, 1 billion won for renovations and 300 million won for operating funds. The ministry said it expects the financing to help innovative firms secure funding, establish themselves in the market and create quality jobs.



* This article has been translated by AI.

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