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Overseas Spending by Students May Top $10 Billion

Posted October. 04, 2005 03:07,   


This year, overseas spending by Korean students studying abroad and their accompanying family members is estimated to top 10.5 trillion won or $10 billion.

The Bank of Korea announced on October 3 that the official sum of spending by Korean students studying overseas amounted to $2.2545 billion from January to August this year, up 41.2 percent from the same period last year. The official sum, which will be counted in the international payment balance, is expected to reach $3.5 billion by the end of this year.

The official amount is the sum of money reported to be remitted to students studying abroad via a foreign exchange bank. However, the total spending derived from studying abroad in effect is much higher when adding the living expenses of the accompanying family members.

The Bank of Korea estimates the total overseas spending last year by Korean students at $7.1 billion. Considering the increased rate of the official spending, the total spending is estimated to reach $10 billion this year.

Overseas spending by Korean tourists is on the steep rise as well. The overseas travel expenditure recorded an all-time high of $9.5 billion last year. This year, $7.75 billion had already been spent overseas by August, and it is estimated to surpass $10 billion this year.

An official of the Bank of Korea predicted, “As summer vacation and the holiday season is now over, overseas spending by students and tourists will be slightly down after September, but it will grow every year due to intensifying income disparities and five-day work week system.”

Kyung-Joon Chung news91@donga.com