South Korea to Increase Tax Refund Ceiling for Foreign Tourists to Boost Tourism

SEOUL - In a move to attract more foreign tourists and revitalize the tourism industry, South Korea will double the ceiling for immediate tax refunds on purchases by foreign tourists to 5 million won (US$3,831) starting next year. The announcement was made by the finance ministry on Monday.

According to Yonhap News Agency, the current policy allows on-the-spot tax refunds for individual purchases up to 500,000 won at designated stores, with a total payment cap set at 2.5 million won. Beginning January 1, 2024, these limits will be raised, allowing a maximum per-payment amount for tax refunds of 1 million won and a total of 5 million won. "The move aims to promote foreign tourists' shopping here and to bolster the tourism industry," Choo stated during an emergency economy-related ministers' meeting. Notably, there are no restrictions on purchases eligible for tax refunds at departure halls.

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