Weakened Yen Fuels Record Korean Travel to Japan Amid Departure Tax Hike

The Japanese yen has hit its weakest level against the Korean won in nearly three years, causing a surge in demand for flights to Japan. The won-yen exchange rate fell to as low as 854.13 won per 100 yen in intraday trading on August 2nd, marking a drop of over 12% from this year's high of 974.62 won recorded on June 5th.

This sharp decline has significantly reduced travel costs for Koreans, with the same amount of yen now exchanging for around 850,000 won instead of 970,000 won in early June. The weak yen is acting as a catalyst that pushes travelers to book sooner, with some low-cost carriers offering one-way fares from Incheon to Tokyo as low as 110,000 won.

The demand is already visible in the data, with a cumulative 6.5698 million South Koreans visiting Japan from January through July this year, up 20.3% from a year earlier. However, the Japanese government has tripled its international tourist departure tax to 3,000 yen per person from the current 1,000 yen, effective July 2026.

Tourism industry experts say Japan's tourism policy is shifting from a phase focused on attracting more foreign visitors to one that asks arriving crowds to share the costs of congestion and preservation. The outlook for the weak yen is uncertain, with some predicting it may rebound quickly if the Bank of Japan raises interest rates in September.