SEOUL (Reuters) – South Korea is considering raising the maximum amount of tax refunds for foreign tourists on their domestic shopping, its finance minister said on Monday, to boost consumer spending amid growing tourist inflows.
The government plans to raise the tax refund limit from next year by a “huge amount”, Finance Minister Choo Kyung-ho said, adding that the exact figure would be determined after more discussion with related agencies.
Currently, the maximum 500,000 won ($370) worth of a local purchase and 2.5 million won in total is applicable for tax refunds when foreign tourists leave the country.
The plan is aimed at benefiting South Korea’s small businesses amid an improvement in foreign tourist inflows, Choo was quoted as saying in a media pool report.
($1 = 1,352.2100 won)
(Reporting by Jihoon Lee; Editing by Muralikumar Anantharaman)