What is tax refund in Korea? How to apply, how much & how to get tax refund in Korea

What is tax-free shopping in Korea, what is tax refund in Korea? How does tax refund work in Korea, how much is tax refund in Korea, how much is tax refund in south Korea (how much tax refund can I get in Korea) What are the tax refund procedures when shopping in Korea and how to apply for tax refund in Korea, how to get tax refund in Korea, how to get tax refund in south Korea? Find out in detail to save money on your trip with us in this article!

Korea has long been known as a shopping paradise for those who love fashion, cosmetics and health care products. Bustling shopping malls, bustling traditional markets or modern convenience stores all offer a diverse shopping experience, meeting all the needs of tourists. In addition to the abundance of products, the tax refund policy when shopping in Korea also makes shopping especially attractive.

But do you know how to shop tax-free in Korea, and the steps to take to get a tax refund? If not, follow the content of the article below for the details!

What is a Tax Refund? How to get tax refund in Korea?

Tax-Free Shopping (TFS) is a way to save money when shopping abroad, especially in Korea. When you buy a product, the cost you pay to the seller will include the product value and the tax. When you get a tax refund, you will be refunded some or all of the tax you paid in advance.

To get a tax refund, keep valid receipts and go to the tax refund counter or kiosk located at the airport. This system is available at most large shopping malls, supermarkets, and even small shops or certified convenience stores, saving time and simplifying the process.

In addition, you can shop at duty-free stores, which sell products at their original prices excluding tax. Major chains such as Lotte, Shilla, and Shinsegae operate duty-free stores at airports and downtown areas, providing a convenient and attractive shopping experience.

Types of Tax-Free Shopping in Korea

When shopping in Korea, visitors can enjoy three main types of tax refunds: duty-free shopping, immediate tax refund, and post-purchase tax refund. Each type has its own characteristics and benefits, suitable for different needs.

Duty-Free Shopping

Duty-free shopping is a form of shopping at designated duty-free stores, such as large shopping malls Shinsegae, Lotte, Shilla. You will not have to pay VAT, personal consumption tax, tobacco and alcohol consumption tax. In particular, this duty-free shop is only for international visitors and you need to have proof of a flight leaving Korea to make a purchase. The duty-free purchase limit is $800 USD, products such as alcohol and perfume have their own limits.

Immediate Tax Refund (#how to get tax refund in Korea)

Some stores have an immediate tax refund policy when you purchase a product. You will be refunded the VAT immediately after paying at stores certified as duty-free shops. This method is quite convenient and saves time.

Post-Purchase Tax Refund

This is the most popular way to get a tax refund in Korea. You pay the full price of the product, including tax, and receive a tax refund receipt when you present your passport at the counter. After completing the procedure, you will receive the tax you paid before leaving Korea. Note that only VAT and personal consumption tax are refunded, other taxes such as tobacco tax and alcohol tax will not apply.

Who Can Get a Tax Refund When Shopping in Korea?

Not everyone who shops in Korea is eligible for a tax refund policy. Below is a list of people who are eligible for tax-free shopping in Korea:

• Foreign tourists staying in Korea for no more than 6 months.
• Korean citizens living abroad for more than 2 years and returning to their home country for no more than 3 months.
• People who do not receive a salary from a company in Korea.
• Not a crew member working for a Korean airline.
• Not a Korean or foreign diplomat working in Korea.

Tourists are eligible for Tax Refunds When Shopping in Korea

To take advantage of the tax refund policy when shopping in Korea, you not only need to meet the conditions regarding the subject but also comply with regulations related to the invoice value, time and usage of the product. Let’s find out!

First, the invoice value must be 30,000 won or more. Therefore, consider buying the necessary items at the same time to easily meet the minimum amount. If you are traveling with friends, you can also combine the invoices to take advantage of this offer. Next, the goods eligible for tax refund must be new, unused or unopened. Finally, you need to leave Korea within 3 months from the date of purchase. Don’t forget to check the deadline to avoid any problems that will cause you to miss your tax refund!

Tax Refund Rates for Tourists in Korea

Korea applies a flat VAT rate of 10% for most items, but there are some special products such as handicrafts, unprocessed foods and medical products that are exempted from tax. This will be an attractive incentive for those who love to shop for typical Korean products.

Regarding tax refunds, tourists will receive a portion of the tax paid. However, the actual refund amount may be lower than 10% due to additional fees, such as the service fee of the tax refund agent. This fee will vary depending on the amount spent and the tax refund unit. To know the exact amount of tax refund, you should check directly at the agent’s counter.

In addition, if you choose to get a tax refund via an international credit card, foreign currency conversion fees may also reduce the refund amount. In short, after deducting the fees, tourists can get back about 7% of the original value of the product. However, tax refunds still bring significant savings benefits to those who love shopping in Korea.

Tax Refund Process in Korea (#how to get tax refund in south korea)

If you don’t know how to get a tax refund when shopping in Korea, don’t worry, the process is quite simple and convenient. Below are the necessary steps for you to get a refund of the tax you paid when shopping here.

Step 1: Get and Keep Your Tax Refund Receipt When Shopping

Before shopping, confirm that the store you choose participates in the tax refund program. Participating stores will have signs with the words “Tax Refund” or “Tax Free” placed in a visible location. The receipts of these stores will also clearly state the same information. When paying, you just need to show your passport to the cashier and ask them to provide you with a tax refund receipt. The receipt is also a mandatory requirement for you to carry out tax refund procedures later.

Step 2: Request Tax Refunds at Major Airports and Service Points Nationwide

After shopping and receiving your tax refund receipt, you can carry out tax refund procedures at service counters or automatic tax refund machines at major airports, ports, or tax refund counters in the city. Here are the detailed instructions:

1. Get a Tax Refund at the Airport and Ports

During your stay in Korea, there is no limit on the amount of shopping you can do to get a tax refund. When you arrive at the airport, you can get a tax refund at a counter or an automatic machine. Note that the process may vary depending on the airport or port. You should ask the staff on site for specific instructions!

Guide to the steps for tax refund at the airport/port:

• Step 1: Check in, but DO NOT check in your luggage and prepare the tax refund receipt.
• Step 2: Present the purchased goods and tax refund receipt to the customs officer to get an export confirmation stamp.
• Step 3: Go to the oversized baggage counter in the check-in and baggage check-in area.
• Step 4: Go to the nearby tax refund counter or automatic machine with your passport and tax refund receipt. You will receive cash directly at the duty-free area after going through security.

Main tax refund locations at Incheon International Airport:

• Tax refund counters: Terminal 1: 3F, Duty Free Area near Gate 28 | Terminal 2: 3F, Check-in Counter D & E / 3F, Duty Free Area near Gate 253.
• Tax refund machines: Terminal 1: 3F, Lobby near Central Pharmacy / 3F, Duty Free Area near Gate 28. | Terminal 2: 3F, Duty Free Area near Gate 250 & 253.

In case the counter is closed, write the refund recipient’s information on the receipt and put it in the designated box on site. If the tax refund request is successfully processed, the amount will be automatically refunded to your international credit card within 1-2 months.

2. Get a Tax Refund at Tax Refund Counters Outside the City Center

You can get a tax refund on your credit card (including Alipay and WeChat Pay) or in cash at tax refund counters in major cities. To get a tax refund here, present your purchased goods, tax refund receipt, passport, and international credit card.

Notes for tax refund at counters in the city:

• The total value of each purchase must not exceed 6,000,000 won.
• When leaving the country, you still need to present your tax refund receipt and report to the customs office or designated tax refund counter at the airport.
• Tax refund counters in the city only process transactions from the respective service provider, while airports and seaports can process transactions from any tax refund company.

Tip: The amount and time of tax refund may vary depending on the type of credit card. Please contact your card issuing bank before applying for a tax refund.

3. Immediately Tax Refunds at Duty Free Shops

In addition to tax refunds at the airport and tax refund counters outside the city center, visitors can also get immediately tax refunds at duty free shops. However, this service has certain limitations. Each transaction must be worth 15,000 won or more, but not exceeding 1,000,000 won per payment. The total spending of visitors during the entire trip must not exceed 5,000,000 won.

When shopping at a duty free shop, you just need to present your passport and request a tax refund right at the checkout counter. This is a quick and convenient way for you to get your tax refund without having to go through the procedures at the airport.

Suggested Duty Free Shopping Places in Korea

Korea is not only famous for its culture and cuisine, but also a shopping paradise for tourists. Below is a summary of outstanding duty-free shopping spots, helping you have a more convenient and economical shopping experience.

Duty Free Korea Area at Incheon Airport

This is the largest duty-free shopping destination and is loved by many tourists in Korea. With a large area, this area is scientifically designed, divided into booths according to product types, making it easy for customers to search and choose. The booths at Duty Free Korea are numbered from K1 to K11, each focusing on a specific product group:

• K1: Traditional handicrafts, ginseng, kimchi.
• K2: International fashion with brands such as Beanpole, Lacoste, Nike.
• K11: High-end brands including Etro, Swarovski, Burberry.

Here, you will find everything from alcohol, tobacco, electronics, clothing (including winter wear and golf gear), cashmere scarves, leather goods, souvenirs, to Korean specialties such as dried seaweed, kimchi and traditional snacks. In particular, cosmetics are always one of the most popular items, with the presence of famous brands from affordable ones such as Ohui, Missha, Clio, to high-end ones such as Hera and Sulwhasoo.

Shopping here, customers have the opportunity to save up to 70-80% compared to regular prices. In addition, some dealers also offer additional promotions and special offers, bringing an extremely ideal shopping experience. To buy duty-free goods, you just need to present your passport and flight information.

Lotte Duty Free Shopping Mall In Seoul

• Address: 30, Eulji-ro, Jung-gu, Seoul.
• Opening hours: 9:00 – 21:00 daily.
• How to get there: Take subway line 2, get off at Euljiro 1(il)-ga station, exit 7 or 8.

Located right in the heart of Seoul, Lotte Duty Free is an ideal destination for tourists who love shopping on their journey to explore the city. Thanks to its convenient location, close to famous landmarks such as Myeongdong shopping street or Gyeongbokgung palace, visitors can easily combine shopping and visiting unique cultural and historical sites.

Lotte Duty Free is a large shopping center with the presence of many famous domestic and foreign brands. Here, visitors can find all kinds of products from fashion, high-end cosmetics, modern electronics, to typical souvenirs. This is definitely the place to meet all shopping needs when coming to the capital Seoul.

Shilla Duty Free

• Address: 249 Dongho-ro, Jung District, Seoul, South Korea
• Opening hours: 9:30 – 20:00

Located in the high-end Shilla Seoul Hotel, Shilla Duty Free is a must-visit destination. Here, visitors can find more than 500 items from famous brands such as perfumes, cosmetics, clothing, jewelry, and electronic devices at attractive preferential prices.

The special feature at Shilla Duty Free is the free electric car service that picks up and drops off guests from 10am to 8pm every day, making travel more convenient. Not only a shopping place, Shilla Duty Free also offers a modern experience and attentive service, worthy of being an ideal destination on your journey.

SM Duty Free – Duty Free Shopping Chain

• Main store address: 6th Floor, Hana Department Store, 38, Insadong-gil, Jongno-gu, Seoul, Korea.
• Reference opening hours: Usually from 9:00 to 18:00

SM Duty Free, located right in the heart of Seoul, is a long-standing and trusted duty free store. With more than 5,000 products from many big and small brands, it offers a wide range of choices, from cosmetics, fashion, electronics to household goods, all at affordable prices.

In particular, visitors can shop online at SM Duty Free’s official website and pick up their goods at the store, which is open 24/7 (Usually in the airport area). Prominent brands such as Victoria’s Secret and Bean Pole are always ready for you to explore. SM Duty Free is the perfect choice to own high-quality products at reasonable prices.

Through this article, we hope that you have a clear understanding of duty-free shopping in Korea and the tax refund process. Take your time to explore duty-free shops, hunt for your favorite items, and enjoy great deals in the land of kimchi.

Some best day tours, trips, activities and transfer services, tickets in and from Seoul you can refer to

• Private Incheon International Airport Transfers (ICN) for Seoul
• Incheon International Airport (ICN) Limousine Bus Transfers for Seoul (Gangnam District)
• Discover Seoul Pass (BTS Edition Available)
• Klook Pass Seoul
• Seoul Yeouido Eland Han River Cruise
• Alpaca/ Nami/ RailBike/ Morning Calm/ LEGOLAND/ Painters/ Wild Show
• [SALE] Instant Ticket! Korea Rail Pass (KR PASS) 2/3/4/5 Days to travel around the cities in Korea
• KAL Limousine Bus Ticket for Seoul
• [Limited Offer] AREX Incheon Airport Express Train One Way Ticket in Seoul
• Bukchon Oneday Hanbok Rental Experience (4/24 Hrs)
• Nami Island, Petite France, Garden of Morning Calm, and Gangchon Rail Bike Day Tour from Seoul
• Seoul City Sightseeing Bus (Downtown Palace Namsan Course/Seoul Panorama Course)
• [Limited Offer] Incheon International Airport (ICN) Luggage Services (Between Airport and Hotel) by Safex
• Everland 1 Day Pass
• Lotte World Ticket in Seoul
• AREX Incheon Airport Express Train Ticket
• KORAIL PASS – KTX Train Ticket
• Discover Seoul Pass
• N Seoul Tower Ticket
• Lotte World Tower Seoul Sky Ticket
• Coex Aquarium Admission Ticket in Seoul
• DMZ(Demilitarized Zone) Tour
• 4G Prepaid SIM Card (SK Airports Pick Up) for South Korea
• [Sale] Hanbok Experience (Hanboknam Gyeongbokgung Store) with Korean Hairstyling
• [SALE] South Korea 4G Pocket WiFi (KR Airports Pick Up) from KT Olleh

Are you finding more top things to do in Seoul: Tours, activities, attractions and other things? Let’s check it out here.