picked this up for $50

It's going to (hopefully) be a touring bike for my girlfriend. We're doing 700km through Korea in September, not camping, mostly smooth paths.

The plan is to modernize it for speed and reliability.

I am undecided about a repaint or not. Thoughts? There is a lot of paint missing, but what remains is good and has a lovely sparkle in it.
Someone in another thread suggested the missing paint might mean a front end collision but to my eye the tubes are straight and i think it may have just been stalled rust removal.

It has made its way down to New Zealand via Freewheeling Bicycles, Austin, San Marcos, and I bought it off a very nice guy, with a very interesting shed, up in the rural North, Kaikohe