South Korea Considers Increasing Tax Refunds for Foreign Tourists
South Korea to Boost Consumer Spending
South Korea is exploring the possibility of raising the maximum amount of tax refunds for foreign tourists on their domestic shopping, according to Finance Minister Choo Kyung-ho. The move aims to stimulate consumer spending in the country, which has seen a significant increase in tourist inflows.
A “Huge” Increase in Tax Refund Limit
The government plans to implement a substantial increase in the tax refund limit starting next year. The exact figure is yet to be determined and will be finalized after further discussions with relevant agencies. Currently, foreign tourists are eligible for tax refunds up to 500,000 won ($370) for local purchases and a total of 2.5 million won when leaving the country.
Supporting Small Businesses
This initiative is primarily aimed at benefiting small businesses in South Korea. With the surge in foreign tourist arrivals, the government aims to provide a boost to the local economy by encouraging tourists to spend more during their visits. Finance Minister Choo emphasized the positive impact this measure would have on small enterprises.
Improved Inflow of Foreign Tourists
South Korea has witnessed an improvement in foreign tourist inflows in recent years. To capitalize on this trend and further enhance the tourism sector, the government is keen on creating a favorable environment for visitors. The proposed increase in tax refunds is expected to attract more tourists and contribute to the growth of the country’s economy.
Note: The exchange rate used in this article is 1 USD = 1,352.21 KRW.
