Southeast Asia Information Port (www.dnyxxg.com) – The once-thriving South Korean business community in Siem Reap, Cambodia, is facing an unprecedented downturn as the South Korean government continues to issue special travel warnings discouraging its own tourists.
South Korean Tourists Plunge, Business Revenue Drops
According to South Korean media reports, since the travel warnings were issued, most South Korean-owned restaurants, travel agencies, and other tourism-related businesses in Siem Reap have experienced a sharp decline in revenue. The number of South Korean tourists flocking to the Angkor Wat World Heritage Site each year has decreased significantly, and almost all charter flights planned for the upcoming winter peak season have been cancelled.
Data from the Korea Tourism Organization (KTO) shows that from January to July 2025, the total number of South Korean citizens visiting Cambodia was 106,686, a 9% decrease compared to the same period last year. Analysts generally believe that this decline is mainly due to the previous border tensions between Cambodia and Thailand, which prompted the South Korean government to issue a "travel restraint" warning for parts of Cambodia.
This situation has severely impacted Siem Reap's economy, which is heavily reliant on tourism, and South Korean entrepreneurs hold a significant share in the local hotel and service industries.
Industry urgently calls for the travel warning to be lifted to protect livelihoods.
A South Korean businessman in Siem Reap told Dongpo News that the situation is dire: "The government must immediately lower the travel warning level to a realistic level and take proactive measures to protect the livelihoods and safety of affected South Korean businesspeople, especially restaurant owners in Siem Reap."
In stark contrast to Cambodia, other Southeast Asian destinations have seen strong growth in South Korean tourist arrivals during the same period. According to KTO data, Indonesia saw a 19% increase, making it the best-performing ASEAN destination for South Korean tourists. The Korea Economic Daily points out that despite Cambodia's affordable and world-class cultural heritage, recent developments, including security concerns and travel restrictions, are weakening its appeal to South Korean tourists.
To rebuild confidence and improve security, Cambodia and South Korea have agreed to establish a joint working group, operational from November 2025, to combat online fraud and other transnational crimes involving citizens of both countries. Under the agreement, South Korea will provide training, capacity building, and expertise exchange for Cambodian law enforcement officials. Joint operations have resulted in numerous arrests and the repatriation of South Korean nationals involved in or victimized by online scams.
While diplomatic and security cooperation helps rebuild long-term confidence, the near-term prospects for South Korean business owners in Siem Reap remain bleak. Reports indicate that many are considering closing their businesses, relocating to other ASEAN countries, or returning to South Korea.
A foreign businessman operating a tourism business in Siem Reap expressed optimism about the lifting of the travel warning in a media interview: “Cambodia is cooperating with South Korea in the investigation. I am hopeful that the South Korean government has decided to lift the warning because there is absolutely no security threat to tourists in Siem Reap, and more South Korean tourists will begin visiting Siem Reap again.”
Industry observers: Inaction will lead to irreversible decline
Industry observers emphasize that without swift action—including reviewing the current travel warning, providing targeted business support, and restarting tourism promotion—the South Korean business presence in Siem Reap could face an irreversible decline. The current economic downturn has had a severe negative impact on local communities and bilateral tourism cooperation.
