Make purchases on a budget in Korea with our curated guides for duty free and tax return-focused shopping!
Only a four and a half plane away from sunny Manila, Korea is definitely the country to consider for your next outbound adventure. With famous staples including Nami Island, alpacas, rail bikes, Petite France, Morning Calm, Everland, and Lotte World— Korea is the perfect destination for young families and groups of friends alike.
Shopping in Korea is also an experience worth exploring. Myeongdong Shopping, in particular, is a key activity to include in your itinerary. Myeongdong is a famous street in Seoul known for its wide variety of retail options: including cosmetic, fashion, Korean fan merch, and the like.
When shopping in Myeongdong and in Korea in general, it's important to immerse yourself in tax returns and refunds to maximize getting your money back. Korea's tax system for tourists is primarily based on two premises: a) duty free, and b) tax refunds.
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Duty Free: Tips on How to Shop Without the Taxes in Korea
When you shop at Korea duty free stores, the final price you pay does not include any taxes. In Korea, shopping stores that offer 'duty free' products are, in general, run by large department stores. This includes globally acclaimed names like Dong Hwa, JDC, Lotte, Shilla, and Shinsegae.
These Korean shops are easy to find and accessible, because unlike other countries, duty free shops are located both within the airport, and at the city center as well.
Tax Refunds: What They Are and How to Claim Them in Korea
A tax refund is a unique system where you pay for what you buy at full price (including taxes), temporarily. Towards the end of your trip, you then have to apply for a refund of the paid taxes. More often than not, you can get tax refunds by submitting official receipts at the proper tax refund booths or kiosks, conveniently located all over Korea.
To be eligible for tax refunds in Korea, you must be a non-Korean citizen, and stay in the country for less than 182 days/six months. Moreover, the items you wish to purchase need to be brand new and unused. You will need to leave Korea 91 days/3 months after the purchase date/s indicated on your receipts.
Here's how to mark your purchases for tax refunds inside a Korean store:
1. Receive VAT refund-eligible receipts when you shop, and keep them safe.
2. Before proceeding to the checkout counter, be sure to double check that the store is qualified as a "certified tax refund brand." Stores who offer refund services must have signages inside their premises that say "Tax Refund." Furthermore, the words "Tax Refund" should also be visible on their printed VAT refund receipts.
3. Be sure to have your passport ready, and present it to the staff during payment.
4. Claim your tax refunds. This can be done at a) major airports in Korea, and b) at service centers conveniently located nationwide.
Here's how to claim your tax refunds at the airport:
1. Check in and claim your boarding passes at the check in counter. Do not submit your bags for check in yet.
2. Prepare the receipts you will need to file for tax refunds.
3. Show the items you have purchased and the tax refund receipts to the customs officer in charge.
4. Ask them to stamp all of your receipts with the Customs Export Approval Stamp.
5. Once you have been cleared, proceed to the check in counter again and check in your luggage.
6. Head to the nearest tax refund counter or kiosk.
7. Ready your passport and stamped tax refund receipts.
8. The actual cash refunds may be received at the "Duty Free Zones," following security inspections and screenings.
[Incheon Airport] Tax Refund Counters | |
---|---|
Terminal 1 | 3rd Floor Duty Free Zone | near Gate 28 |
Terminal 2 | 3rd Floor Check In | Counters D & E 3rd Floor Duty Free Zone | near Gate 253 |
[Incheon Airport] Tax Refund Kiosk Machines | |
Terminal 1 | 3rd Floor Concourse | near the central pharmacy 3rd Floor Duty Free Zone | near Gate 28 |
Terminal 2 | 3rd Floor Duty Free Zone | near Gates 250 & 253 |
* As these locations may change, we advise you to check on the locations upon your actual arrival at the airport.
Here's how to claim your tax refunds at tax refund booths in the city:
1. Present the items you bought.
2. Show the officer all of your VAT refund receipts.
3. You also need to prepare your passport, and an international credit card.
4. Tax refunds may be claimed for all purchases that are below 6,000,000 Korean Won per receipt.
5. Once you receive your refund, you still need to report it to the Korea customs office or the designated refund counter at the airport before you fly out.
* At these locations, you may claim your refund either through straight cash, credit card, AliPay, or WeChat Pay.
** Tax refund booths in the city center only provide tax refunds that are processed by certain Korean tax refund companies.
*** Tax refund counters inside the airport or port terminals provide tax refunds for your purchases regardless of the Korean tax refund company involved.
**** As your refund amount may vary depending on your credit card, you are advised to coordinate with your bank and credit card company before proceeding.
Here's how to claim an immediate tax refund:
In some cases, you may also apply for an immediate tax refund at a couple of brands in Korea. Here are the qualifications.
2. The maximum amount that can be filed for tax refund is 2,500,000 Korean Won.
3. You must present your passport while paying at the checkout counter.