South Korea is set to enhance its allure for foreign shoppers by doubling tax refund benefits starting in January. Finance Minister Choo Kyung-ho announced plans to raise the maximum limit for tax refunds on domestic purchases made by foreign tourists. Currently limited to 500,000 won ($370) per local purchase and 2.5 million won in total, the new policy aims to boost consumer spending amid a growing tourist influx.
Under the proposed changes, the maximum refundable amount will be doubled, allowing foreign tourists to claim up to one million won (S$1,000) per local purchase and five million won in total upon leaving the country. The move is not only geared towards enhancing the shopping experience for visitors but is also seen as a strategic move to support South Korea’s small businesses.
The plan presents an opportunity for local businesses to benefit from increased consumer spending. As South Korea positions itself as an attractive shopping destination, the move aligns to stimulate economic growth through tourism and retail.