South Korea is considering increasing the maximum amount of tax refunds for foreign tourists who shop domestically, in an effort to boost consumer spending. Finance Minister Choo Kyung-ho announced that the tax refund limit will be significantly raised from next year, although the exact figure is yet to be determined. Currently, foreign tourists can receive tax refunds up to 500,000 won ($370) on a single local purchase, with a total cap of 2.5 million won. This proposal aims to support small businesses in South Korea and capitalize on the growing influx of tourists to the country.
The South Korean government is exploring ways to encourage foreign tourists to spend more within the country by increasing the tax refunds on their domestic shopping. Finance Minister Choo Kyung-ho stated that discussions with relevant agencies are ongoing to determine the specific amount of the tax refund increase. The current tax refund policy allows foreign tourists to claim up to 500,000 won on a single purchase, with a total cap of 2.5 million won. By expanding this limit, the government hopes to stimulate consumer spending and provide a boost to the country’s small businesses.
The proposed plan aims to capitalize on the positive trend of growing tourist inflows that South Korea has been experiencing. Finance Minister Choo highlighted the benefits that this tax refund increase would bring to small businesses. With more foreign tourists visiting the country, local businesses can expect to see an upswing in sales. By incentivizing tourists to spend more through higher tax refunds, South Korea intends to support the growth of its domestic economy and create a favorable environment for small enterprises to thrive.
