South Korea to double tax refunds for foreign tourists

The move will start in January 2024.

South Korea.- Finance minister Choo Kyung-ho has said that South Korea will double tax refunds for foreign tourists from January 1, 2024, in order to boost its tourism industry. The maximum limit for on-the-spot tax refunds will increase to one million won for a single local purchase, with a total cap of five million. 

Currently, some stores can offer on-site tax refunds for a single purchase of 500,000 won or more. The maximum limit is KRW2.5m. There are no restrictions on purchasing goods eligible for tax refunds in airport departure halls.

In September, NH Investment & Securities Co predicted that the return of Chinese group tours to South Korea would boost the casino industry, particularly the mass-market segment.

In early August, China allowed group travel for Chinese citizens to more destinations, including South Korea and Japan as part of an easing of post-Covid-19 travel restrictions. South Korean authorities have waivef processing fees for group visitors, previously KRW18,000 (US$13.60), until the end of the year.