Combining rich culture, fantastic food, and excellent shopping experiences, South Korea is undoubtedly one of the top destinations. There's a bonus for international travellers, particularly shopaholics—South Korea’s tax refund system. This simple process lets tourists reclaim a part of the value-added tax (VAT) and enjoy significant savings on their purchases.

If you’re planning your next shopping spree in Korea and want to make the most of your trip, this guide will walk you through everything you need to know about claiming your tax refunds. We’ll cover eligibility, the refund process, insider tips, and comparisons with other travel hotspots.

Whether you’re a seasoned traveller or a first-timer, mastering the Korean tax refund system will elevate your travel experience, leaving you with more funds to explore or bring home extra goodies.

South Korea operates a tourist tax refund scheme that allows international visitors to claim back a percentage of the VAT on goods purchased during their stay. Typically, VAT on most products is 10%, and eligible tourists can claim a large portion, depending on the refund process.

This system is designed to benefit travellers by reducing the cost of their shopping while encouraging tourism and retail sales. You could save plenty if you’re buying high-end cosmetics, trendy K-fashion, or souvenirs for loved ones back home.

If you’re visiting South Korea temporarily and are planning to return home (or to another country), chances are you qualify. The key eligibility criteria are as follows:

To qualify for a tax refund, you must spend at least KR₩15,000 or SGD$15 (VAT included) on a single receipt at a participating store. However, some stores may set a higher minimum, such as KR₩30,000 or SGD$30, meaning purchases below this threshold won’t be eligible. To avoid any surprises, be sure to review the store’s tax refund policy before making a purchase.

To claim your refund, you’ll need these essential documents:

Ensure you shop only at stores displaying the “tax-free” or “VAT refund” logos for a seamless experience.

Look for stores with tax-free signage and ask for a tax refund receipt when you make a qualifying purchase.

There are two common ways to receive your tax refund in South Korea:

Your refund will be in your hands (or your bank account) by the time you board your flight.

While the refund process may seem straightforward, there are tricks to help you get the most out of it.

Group as many purchases as possible into fewer transactions that meet the minimum spend threshold of KR₩30,000 (S$30). This qualifies for the refund and reduces the hassle of processing multiple receipts.

There’s a cap on how much total VAT you can claim per trip (currently KR₩2,000,000 or S$2,000). Plan accordingly if you’re buying high-value items like electronics or luxury goods.

Many Singaporean travellers are familiar with tax refund systems in countries such as Japan, Europe, and Australia. Here’s how Korea stacks up:

These comparisons make South Korea an excellent choice for shopaholics looking for value in their purchases.

Korea’s tax refund policies continue to evolve. Starting next year, the government may introduce additional digital refund systems to speed up processing times even further.

Check with official tourism boards or apps like Traveloka to stay updated on these changes. These provide reliable resources and enhance the convenience of travel for Singaporean travellers.

Shopping is a huge part of the South Korean travel experience, and mastering the tax refund system only enhances it. From planning strategic purchases to claiming your refund at the airport, understanding this system ensures you make the most of every penny you spend.

Have tips or memorable experiences with claiming tax refunds in Korea? Share them in the comments! Ready to plan your next shopping adventure? Discover the best flight deals, accommodations, and exciting activities all in one place with Traveloka. Start planning your trip today! Book your flight now with SIA Ticket Promotion and enjoy exclusive ticket deals for your South Korea getaway!