Double Your Shopping Joy in Korea! What is a Tax Refund?
While shopping in Korea, you'll often see logos for 'Tax Free' or 'Tax Refund.' This is a special benefit for foreign tourists: the tax refund system. It allows you to get back the Value-Added Tax (VAT, approx. 10%) included in the price of goods, which is essentially like getting a discount. Follow this guide to shop smart and get your money back!
โ๏ธ Who is Eligible and What's the Minimum Spend? (Basic Conditions)
- Who?: Foreign tourists staying in Korea for less than 6 months.
- How much?: For purchases of KRW 30,000 or more at once at a 'Tax Free' affiliated store.
- What you need: Your passport (You must carry it with you when you shop!)
Step-by-Step Guide to Getting Your Tax Refund
It might seem complicated, but it's very simple if you follow the steps. It's broadly divided into two stages: getting the documents at the store and getting the refund at the airport/downtown.
STEP 1: Get the 'Refund Slip' at the Store
- Check for the 'Tax Free' Logo: Look for the blue 'Tax Free' or orange 'Tax Refund' logo at the store entrance or checkout counter.
- Present Your Passport at Payment: After spending over KRW 30,000, say "Tax Refund, please" to the cashier and show your passport.
- Receive the Refund Slip: Make sure to get the refund slip along with your receipt. Do not lose these slips and receipts before you depart!
STEP 2: Getting Your Refund (3 Methods)
The most common method is to get your refund at the airport on your departure day.
Method 1: Refund at the Departure Airport (Most Common)
โ ๏ธ Most Important Point: You must complete the customs declaration before you check in your luggage!
- After arriving at the airport, find the 'Customs Declaration' desk or a 'KIOSK' near the check-in counters.
- KIOSK (Self-Service Machine): In most cases, you can process it easily at a kiosk. Scan your passport, then scan the barcode on each refund slip. It's very convenient!
- Customs Declaration Desk: For very large purchases or if the kiosk shows an error, you'll need to go to a customs officer. The officer may ask to see the purchased items, so you must complete the customs declaration before putting the items in your checked luggage.
- Check-in and Drop Off Luggage at the Airline Counter
Once customs confirmation is done, you can check in and drop off your bags as usual.
- After Immigration, Get Your Cash in the 'Duty-Free Area'
After passing through security and immigration, you can easily find the 'Tax Refund' counters (Global Blue, Global Tax Free, etc.). Present your customs-stamped slips, and you can receive your refund immediately in cash (you can choose KRW, USD, etc.) or apply for a credit card refund.
Method 2: Immediate Refund at a Downtown Refund Booth
Some department stores and refund booths located in downtown areas like Myeongdong or Gangnam allow you to get an immediate tax refund after shopping.
- Pros: You can get cash in advance without waiting at the airport.
- Cons: Even if you receive cash upfront, you must provide your credit card information as a guarantee. And you must still complete the customs validation (e.g., scanning at an airport kiosk) upon departure to avoid being charged. If you forget this step, the refunded amount plus a penalty will be charged to your card!
Method 3: Instant Discount at the Store
Some large marts and department stores operate an 'instant refund' system where the tax is deducted directly from your bill at the time of payment. This is available for single purchases up to KRW 500,000 and a total purchase amount of KRW 2,500,000. It's the most convenient method as you only need to present your passport.
Don't Forget! Tax Refund Pro-Tips
- Allow Plenty of Time: It's recommended to arrive at the airport 30 minutes to 1 hour earlier than usual for the refund process.
- Passport is a Must: You cannot get a refund slip without your passport at the time of purchase. Photocopies or photos are often not accepted, so be sure to carry the physical passport.
- Keep Your Slips Organized: If you've shopped at multiple places, keeping all your refund slips in one envelope or zip-lock bag will make processing them at the airport much easier.
