Since the late 1980s, tourism has become Australia's most important source of export earnings, surpassing traditional commodities of wool, wheat and meat. Globally, Australia's tourist sector is growing at a rate exceeding all other OECD nations. Arrivals were up 16% when the years 1992 and 1993 are compared. Maintaining this growth requires diversifying the source of tourists. This article explores the growth in the tourist trade to Australia from the Republic of Korea (henceforth Korea). From 1991 to 1993, Korea was one of Australia's most rapidly growing source of inbound tourists. The article examines the growth in tourist flows between Korea and Australia in terms of 'functional space' which emphasises the concepts of generation, linkage and attraction between home and destination countries. It is argued that the demand for overseas travel in Korea is a response to the complex interplay of reduced explicit government legislation controlling overseas travel and increasing personal wealth. Marketing is essential to encourage Koreans to visit Australia since it is a marginal location in terms of Koreans' actual holiday destinations. Transforming potential to actual travel is dependent upon the marketing strategies pursued by the Australian Tourist Commission, travel agents, and airline companies.