Demand for travel to Japan has picked up again amid the yen's continued weakness. More South Koreans are visiting Japan, and family trips are increasingly being added to their itineraries. Purchases of yen aimed at profiting from exchange-rate gains are also becoming more apparent.
Demand for travel to Japan has picked up again amid the yen's continued weakness. South Korean office workers planning to attend acquaintances' weddings are arranging to stay for several days while combining the trips with family vacations.
The exchange rate between the won and the yen has recently fallen to the ¥854 range per ¥100, down approximately 12% from early June. As a result, the cost of exchanging ¥100,000 is calculated to be approximately KRW 120,000 lower than before.
According to statistics from the Japan National Tourism Organization, 894,700 South Koreans visited Japan in July, up 31.9% year on year and the highest level ever recorded for July. The reduction in travel costs resulting from the weak yen is providing a tailwind.
There is also a growing trend of buying yen in advance without plans to travel. Yen deposit balances, known as “entech” and measured as of last month, totaled ¥1.3456 trillion, exceeding the previous record level. Individuals are also buying yen in installments.