2024 South Korea Tourism Tax Refund Policy Overview! Process and Notes Included Tax Refund Amount Table!

Check out the 2024 South Korea tourist tax refund policy guide curated by our editor, including various processes and precautions! With the popularity of Korean Wave and South Korea as a sought-after travel destination, many people plan trips to South Korea. In this shopping paradise, tax refunds have become one of the focal points for tourists. Not only can tax refunds help you save expenses, but they can also provide you with more opportunities to shop. However, South Korea's tax refund policies frequently change, so understanding the latest tax refund thresholds and related strategies will be crucial for your travel plans.

## Tax-Free and Refund **Tax-Free:** Tax-free means consumers can be exempt from paying consumption tax when purchasing specific goods. Tax-free benefits typically apply to certain designated products, such as cosmetics, health supplements, and luxury brand items. When buying tax-free products, you can present your passport or relevant documents at the store checkout to enjoy the tax exemption. **Refund:** Tax refund refers to paying consumption tax during shopping but being able to apply for a partial or full refund of the consumption tax upon leaving Korea. Tax refunds are available to all foreign tourists and are not limited to specific products. When shopping, ensure your purchase amount meets or exceeds the tax refund threshold (which varies depending on the goods and shopping location). You will also need to complete the necessary procedures at a tax refund office before departure. Refund amounts can be returned in cash or credited back to your original payment card.

If the store has the "post-purchase tax refund" sign above, it means that the store provides post-purchase tax refund services.

- Foreigners whose stay in the country does not exceed 6 months. - Overseas Koreans who have lived overseas for more than 2 years, or hold permanent residency abroad and stay in Korea for no more than 3 months. - Individuals who depart within 3 months of consumption. - Individuals who make a single purchase at stores providing tax refund services exceeding 15,000 Korean won (previously 30,000 Korean won). Note: Individuals holding long-term visas in Korea (e.g., work visas) are not eligible for tax refunds.

1. Cosmetics and Skincare: Korea is renowned worldwide for its high-quality cosmetics and skincare products. Tourists can purchase a variety of makeup, face masks, skincare items, etc., and enjoy tax refund benefits. Many well-known brands such as Etude House, Innisfree, Laneige, etc., offer tax refund services, allowing you to buy high-quality beauty products at discounted prices. 2. Clothing and Accessories: Korea is one of the fashion trend centers, with many renowned clothing brands and designers. When you purchase clothing, shoes, bags, jewelry, etc., in Korea, you can enjoy tax refund benefits. Areas like Myeongdong, Ewha Womans University, and Hongdae in Seoul have numerous fashionable shopping malls and boutiques, allowing you to indulge in the latest fashion items. 3. Electronics: Korea is one of the world's leading manufacturers of electronic products, boasting many renowned brands such as Samsung and LG. When you purchase mobile phones, tablets, cameras, televisions, etc., in Korea, you can enjoy tax refund benefits. This not only allows you to own the latest tech products but also buy them at discounted prices.

| Consumption Amount (Korean Won) | Refund Amount (Korean Won) | Refund Rate | |---|---|---| | 30,000-49,999 | 1,500-2,000 | 3-6.7% | | 50,000-74,999 | 3,000-3,500 | 4-7% | | 75,000-99,999 | 5,000 | 5-6.7% | | 100,000-124,999 | 6,000-7,000 | 4.8-7% | | 125,000-149,999 | 8,000 | 5.3-6.4% | | 150,000-174,999 | 9,000-9,500 | 5-6.3% | | 175,000-199,999 | 10,000-11,000 | 5-6.3% | | 200,000-224,999 | 12,000-12,500 | 5.3-6.25% | | 225,000-249,999 | 13,000-14,000 | 5.2-6.2% | | 250,000-274,999 | 15,000-16,000 | 5.45-6.4% |

Here are some general refund rates in Korea for your reference:

• Clothing, shoes, accessories, cosmetics, etc.: Refund rate is about 4% to 7%
• Electronics, watches, jewelry, etc.: Refund rate is about 4% to 7%
• Luxury goods, high-end brands, etc.: Refund rate is about 4% to 7%
• Food, health products, etc.: Refund rate is about 4% to 7%

Please note that these refund rates are for general reference only. The actual refund amount may vary depending on the tax refund company and the type of goods purchased. Tax refund companies usually publish real-time refund rates, and you can ask the store clerk for details about refunds when shopping.

Also, please note that if a single purchase exceeds 1,000,000 Korean Won, the amount exceeding this limit will not be refunded. Tax refund policies and refund rates may change over time, so it is best to check the latest tax refund information or consult with local tax authorities before shopping.

City tax refunds in Korea are a convenient way to get your money back. Tourists can complete the refund process at designated refund counters or self-service kiosks located in major shopping areas throughout the city. However, it's important to remember that even though you process the refund in the city, you still need to complete the entire procedure at the airport to prove you have left the country. To qualify for a city tax refund, tourists must shop at participating retailers with a minimum single purchase of 15,000 Korean Won and a total spending amount during their stay not exceeding 6,000,000 Korean Won. When applying for a city tax refund, you need to bring your passport, the purchased items, and the original tax invoice. It is also recommended to bring an overseas credit card as collateral for the refund amount. Here's a step-by-step guide on how to apply for a city tax refund: 1. Check for the tax refund eligible mark and confirm the purchase amount meets 15,000 Korean Won. 2. Inform the cashier that you require a tax refund and present your passport. 3. Receive the tax invoice. 4. Proceed to a designated refund counter or self-service kiosk in the city to complete the refund process. 5. Choose between a cash refund or credit card refund. If opting for a cash refund, an overseas credit card is required as collateral. 6. On your departure day, after completing customs procedures, submit the tax invoice to the staff at the refund machine or counter. Customs will stamp it confirming your departure, and the corresponding credit card collateral will be automatically canceled. When using a self-service tax refund machine, please note: * Refunds exceeding 75,000 Korean Won (approximately exceeding 1,000,000 Korean Won) cannot be processed through the self-service kiosk and must be handled by staff at the designated counter. * If the refund amount exceeds 75,000 Korean Won, before checking in for your flight, inform your airline about your need for a tax refund. After receiving your boarding pass, hand over your luggage to customs officials for inspection and stamping before check-in. Additionally, if you choose a cash refund, you will need to prepay 1.1 times the refund amount as a deposit. When applying for a city tax refund, please also pay attention to the refund limits and relevant policies to ensure you meet the eligibility criteria and understand how the refund amount is calculated. If you have any questions about the specific city tax refund process or policies, it is recommended to contact the local tax office or tourist information center, as they can provide more detailed guidance and assistance.

Airport tax refunds in South Korea are a convenient and efficient way to receive a refund on eligible purchases. Tourists can complete their tax refund process at the airport before leaving the country. Here is some information about airport tax refunds in South Korea: **Airport Tax Refund Counters and Kiosks:** Upon arrival at the airport, you can proceed to the customs tax refund counter or the self-service tax refund kiosk (Tax Refund Kiosk) to complete the refund process. If your refund amount is less than 75,000 Korean won, you can choose to use the self-service tax refund kiosk. However, if your refund amount exceeds 75,000 Korean won, you will need to visit the customs tax refund counter. **Conditions for Airport Tax Refunds:** The following conditions are required to apply for an airport tax refund: 1. **Shopping at Participating Stores:** You must make purchases at stores that offer tax refund services. Ensure the store has a tax refund service available. 2. **Minimum and Maximum Purchase Amount:** Your single purchase amount needs to be at least 15,000 Korean won and not exceeding 6,000,000 Korean won to qualify for the tax refund. **Documents and Items Needed for Airport Tax Refunds:** When processing your airport tax refund, you will need to prepare the following documents and items: 1. **Passport:** A valid passport is required as proof of identity. 2. **Taxable Goods:** You must bring the goods eligible for a tax refund for inspection by customs officials. 3. **Tax Refund Receipt:** Obtain a tax refund receipt from the store at the time of purchase; this document is essential for completing the refund process. 4. **Overseas Credit Card:** If you paid with an overseas credit card, please have your relevant credit card information ready. **Airport Tax Refund Process:** Here is a general outline of the airport tax refund process: 1. At the airport tax refund counter or self-service kiosk, prepare your passport, tax refund receipt, and eligible goods. 2. Follow the instructions for the self-service kiosk or submit your documents and goods to the customs tax refund counter staff. 3. Customs officials will inspect your documents and goods, confirming eligibility for a refund before returning the refund amount to you. 4. You can choose to receive your refund in cash or via credit card. **Please Note:** The actual refund amount will be calculated based on your purchase amount and tax refund rate, which may vary. Please allow sufficient time to process your refund before leaving South Korea to avoid delays in your travel schedule. If you have any questions or require further assistance, please inquire at the airport's tax refund counters or staff members.