South Korea is a shopping paradise, where you get everything from high-end fashion to skincare and even electronics. The good news? As a tourist, you can claim a tax refund on eligible purchases so that you get more for every won!
If you’re confused about how to get your tax refund, fret not. This comprehensive guide will walk you through the process, including eligibility, refund methods, and step-by-step instructions. It also answers the most common questions you may have about getting a tax refund in Korea!
What is a tax refund in Korea?
In Korea, foreign tourists can receive a refund of domestic tax (such as VAT) from purchased goods at tax free stores within 3 months of their departure from Korea.
Who is eligible for a tax refund in Korea?
To qualify for a tax refund in Korea, you have to meet the following conditions:
- You are a non-resident tourist or foreign national in Korea.
- Your stay in Korea is less than 6 months (for non-Korean passport holders).
- You purchased goods at a tax-free store (look for “Tax-Free” or “Tax Refund” logos).
- Each purchase is at least 30,000 KRW (about USD 23) in a single transaction.
- You export the items out of Korea within 3 months of purchase.
Where can you get a tax refund in Korea?
Many retailers in Korea offer tax refunds. Look for stores displaying:
- “Tax-Free” Stores: Immediate tax-free shopping at checkout. This is for purchases under 1,000,000 KRW.
- “Tax Refund” Stores: Pay the tax first, then claim a refund at the airport.
Look out for these symbols at the checkout counter. The most common ones you’ll encounter (at least in Seoul) are Global Tax Free and Global Blue.
Tip! Popular areas to shop at for tax-free items include:
- Myeongdong: Cosmetics, fashion, electronics
- Gangnam: Luxury shopping and department stores
- Hongdae: Trendy clothing and accessories
How to get a tax refund in Korea (step-by-step guide)
Immediate tax-free shopping during checkout
For stores that allow you to deduct the tax at the time of purchase:
- Step 1: Shop at a store with a Tax-Free logo.
- Step 2: Show your passport at checkout.
- Step 3: Pay the tax-free price.
- Step 4: Declare the items at the airport before departure.
Tax refund at the airport or downtown refund locations
If a store does not offer instant tax-free shopping, follow these steps:
- Step 1: Request a tax refund receipt from the cashier.
- Step 2: Visit a tax refund counter or kiosk at the airport or select downtown refund locations.
- Step 3: Validate purchases for total refund amount that exceeds 75,000 KRW (~ USD 57). You may need to show your items to a customs officer and get a stamp on your receipts.
- Step 4: Get your refund. After clearing security, go to the tax refund counter or use a refund kiosk to receive your money. Choose your refund method: cash (KRW, USD, etc.), credit card refund, or Alipay/WeChat Pay.
Where to claim tax refund in Korea
Airports & Ports
The ones that receive the most international travellers would be the locations where you can get your tax refunds.
- Incheon International Airport (T1 & T2)
- Gimpo International Airport
- Busan Gimhae International Airport
- Jeju International Airport
- Port of Busan (for cruise travelers)
Downtown Refund Locations
- Myeongdong Refund Centers: Major shopping hubs
- Lotte, Shinsegae, and Hyundai Department Stores: In-store tax refund services
Suggested read: My guide to best places to buy beauty products in Seoul
How much tax refund can I get in Korea?
VAT in Korea is 10%, but the actual refund is around 5-8% due to processing fees.
Can you get a tax refund if you lose your receipts?
No, you must present your tax refund receipt to claim your refund.
Is there a refund limit?
You can refund up to 5,000,000 KRW (~ USD 3,800) per trip.
What happens if I forget to claim my refund at the airport?
Unfortunately, you cannot claim your tax refund after leaving Korea. So be sure to get it done before you head back!
Can you claim a tax refund for food or hotel stays?
No, Korea’s foreigner tax refunds apply only to tangible goods, and does not apply to services like food, hotel stays, or transportation.
My tips for a smooth tax refund process
Having shopped in Korea for quite a number of years and done my fair share of tax refunds, here are some of my personal (and most useful) tips for getting your tax refund in Korea done:
- Keep all receipts & tax refund forms organised. Be sure to separate the ones that have already been claimed in store and the ones you need to process at the airport.
- Arrive early at the airport to allow time for tax refund processing. While there are many kiosks available for tax refunds, there may be queues + it can take time to slowly process all your recipts!
- If you have time to spare in your itinerary, check refund availability at downtown refund locations before heading to the airport.
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