How do Tax Free Refunds work in SK

Your easy guide to saving money while shopping in Korea

If you’re visiting South Korea and planning to shop (and let’s be honest—how can you not?), you’ll be pleased to know that you can get some of your money back thanks to Korea’s tax-free shopping system. Whether you're buying K-beauty, fashion, or cute souvenirs, here’s how to claim your VAT refund.

🧾 What Is the Tax Refund About?

South Korea adds a Value Added Tax (VAT) of 10% on most goods. But as a foreign visitor, you can get that tax refunded on eligible purchases when you leave the country. This system is designed to encourage tourism and shopping, so you can enjoy more shopping without paying the full local tax—as long as you follow a few simple steps.

🛒 Who Can Claim a Tax Refund?

To be eligible, you must:

• Be a non-resident foreign visitor

• Stay in Korea for less than 6 months

• Spend over ₩15,000 at participating stores

You’ll also need your passport at the time of purchase, so make sure to keep it handy while shopping.

🛍️ Where Can You Shop Tax-Free?

Look for shops with a “Tax Free” or “Tax Refund” sign—these are usually clearly marked in malls, department stores, and popular shopping areas like Myeongdong, Dongdaemun, and Gangnam.

Major chains like Lotte Duty Free, Shinsegae, Olive Young, and Innisfree all participate.

✌️ Two Ways to Get Your Refund

1. Instant Refund (In-Store)

Some shops offer immediate tax refunds at checkout. Here's how it works:

• Show your passport

• Spend between ₩15,000 and ₩1,000,000

• The VAT is deducted on the spot, so you pay less straight away💡 Great for convenience!

2. Refund at the Airport

This is the most effective method to obtain a refund when purchasing high-cost items or undergoing costly medical procedures like cosmetic surgery. You can make unlimited purchases during your stay with this method, using either the tax refund counter or a kiosk.

• Ask for a tax refund receipt and form

• Keep all receipts and unused items in your carry-on at the airport:

• Head to the tax refund kiosk or counter (before checking in)

• Scan your passport and receipts

• If requested, show the items to customs

• After security, collect your refund at a Global Blue, TAX FREE, or KT Tourist Refund counter

Should the tax refund counter be closed and the kiosks out of service, you can fill in the recipient's details on the receipt and place it in the designated on-site box. If the tax refund request is approved, the refunded amount will be automatically credited within 1 to 2 months. Refunds can be made to your credit card, Alipay/WeChat Pay, or in cash (KRW).

Tax refund counter locations 

• Terminal 1: 3F Duty Free Zone near Gate 28

• Terminal 2: 3F Check-in counters D & E / 3F Duty Free Zone near Gate 253 

Tax refund kiosk machine locations 

• Terminal 1: 3F Concourse near the central pharmacy / 3F Duty Free Zone near Gate 28

• Terminal 2: 3F Duty Free Zone near Gates 250 & 253

💡 Tips for a Smooth Refund Experience

• Keep your receipts and tax forms organised

• Arrive at the airport a bit earlier if you need to visit the tax desk

• Use the automated kiosks for quicker processing

• Items must leave Korea unused—don’t wear or open them before flying home

  
  

✈️ Final Thoughts

South Korea makes tax-free shopping relatively hassle-free, and it’s a great way to save a bit of money while indulging in some retail therapy. Whether you prefer skincare hauls, fashion finds, or souvenirs, just follow the steps above and enjoy your extra KRW on the way home!

Got questions about shopping in Korea or planning your trip? Contact Koreana Travel at 📞 03303 412131 or 01284 277260 — we’re here to help!