Foreign tourists (staying no more than 6 months from entry) who buy goods at Tax Free-labeled duty-free-eligible stores can get a refund of the 10% VAT and part of the individual consumption tax. Instant refunds — deducted right at checkout — apply to single purchases of KRW 15,000 to under KRW 1 million, capped at KRW 5 million total per stay; otherwise, refunds are claimed at the airport refund counter on departure or through downtown refund services.
Foreign businesses (non-residents or foreign companies with no domestic place of business) can reclaim VAT paid on business-related expenses in Korea through a separate foreign-business VAT refund program, based on the principle of reciprocity.
Tourist VAT refund steps
For foreign businesses, check reciprocity first
The foreign-business VAT refund only applies to countries that similarly refund VAT to Korean businesses — the "reciprocity" principle. Confirm whether your country qualifies, and the application procedure, with the NTS International Taxation division in advance.