South Korea offers VAT refunds to foreign visitors, but only through specific retailers and with strict documentation
South Korea has a VAT refund system for tourists, but it works differently than systems in Europe or other countries. You can recover the 10% value-added tax on purchases made at participating stores, but the refund is not automatic—you must request it at the airport before you leave, and only certain retailers participate in the program.
The refund applies only to goods you take out of the country in your luggage. Food, beverages, services, and items you consume in Korea do not may have access to. You also cannot claim a refund on items purchased at small independent shops unless they are part of a refund network.
Most department stores, duty-free shops, and large retail chains in Seoul, Busan, and other major cities participate. Smaller shops and street vendors typically do not, so you need to check at the point of sale whether the store offers refunds.
Key Takeaways
- VAT refunds in South Korea are available only at participating retailers, primarily large department stores and duty-free shops, not at independent vendors.
- You must request a refund form (called a Tax Refund Form) at the time of purchase and keep your receipt and the goods in their original condition.
- Refunds are processed at the airport before departure, either in cash or credited back to your credit card, depending on the amount and method you choose.
- The refund covers the 10% VAT only and requires you to show the unopened goods and your passport to customs officials at the airport.
- Processing takes place at designated refund counters in the departure area, and you should allow extra time before your flight to complete the process.
Which stores participate in the VAT refund program
Large department stores like Lotte, Hyundai, Shinsegae, and Galleria participate in the refund system. Duty-free shops at the airport and in major shopping districts also process refunds. Many international brand boutiques and cosmetics chains like Amorepacific and Innisfree have refund programs as well.
When you shop, look for the "Tax Free" or "VAT Refund" sign at the register. If you do not see one, ask the staff directly whether they participate. Some stores participate only for purchases above a minimum amount, often 30,000 to 50,000 Korean won (roughly $23 to $38 USD), though this varies by retailer.
Convenience stores, street markets, restaurants, and small independent shops almost never participate. If you are shopping at a place that looks like a tourist destination, the store likely participates; if it is a neighborhood shop, it probably does not.
What you need to do at the time of purchase
When you buy something at a participating store, tell the cashier you want a VAT refund before they process the transaction. They will give you a Tax Refund Form (also called a Global Refund Form or similar name depending on the retailer). You must fill this out with your passport number and contact information.
Keep the receipt, the refund form, and the goods together. Do not open or use the items—customs officials will inspect them at the airport, and opened goods disqualify you from the refund. If you buy multiple items, each receipt and form should be kept separate and organized.
Some stores may ask for your passport at the time of purchase to verify you are a foreign visitor. This is normal and required for the refund to be valid.
How to claim your refund at the airport
Before you check in for your flight, go to the VAT refund counter in the departure area. These are usually located near the check-in counters or in a dedicated tax refund zone—ask an airport staff member if you cannot find it. You will need your passport, the goods in their original packaging, the receipts, and the refund forms.
A customs official will inspect the items to confirm they are unopened and match the receipts. Once approved, they will stamp your refund forms. You then take the stamped forms to the refund processing counter, which is usually nearby or in the duty-free area.
At the processing counter, you choose how to receive your refund: cash in Korean won, cash in USD or another currency (at an exchange rate set by the counter), or a credit to your credit card. Cash refunds are immediate; credit card refunds take 5 to 10 business days to appear on your statement.
Refund amounts and fees
The refund is 10% of the purchase price before tax. If you spent 100,000 won on goods, your refund would be 10,000 won. However, the refund counter deducts a processing fee, usually 3% to 5% of the refund amount, so you receive roughly 5% to 7% back in practice.
Some retailers offer their own refund programs that may have different fee structures or higher refund percentages. Ask at the store whether they have a private refund program in addition to the government VAT system.
If you receive cash, you get the amount immediately. If you use a credit card, the refund is credited back to the card you used for the purchase, and it appears within one to two billing cycles.
What happens if you miss the airport refund deadline
If you leave the airport without claiming your refund, you cannot claim it later. The refund must be processed before you depart South Korea. There is no way to file a claim after you have left the country.
Plan to arrive at the airport with enough time to visit the refund counter before check-in. During busy travel times, the refund process can take 15 to 30 minutes, so budget accordingly.
Items that do not may have access to for refunds
Food, beverages, and restaurant meals are never refundable, even if purchased at a participating retailer. Services like hotel stays, tours, and transportation do not may have access to. Items you consume or use in Korea—such as cosmetics you open and use, or clothes you wear—are not refundable.
Goods purchased at the airport duty-free shop after you pass through immigration cannot be refunded through the VAT system because they are already duty-free. Some duty-free retailers have their own refund policies, so check with them directly.
Frequently Asked Questions
Can I get a refund if I buy something and then return it to the store?
No. Once you have claimed a VAT refund at the airport, you cannot return the item to the store for a refund. If you want to return an item, you must do so before you claim the VAT refund, and the store will refund you the full amount including tax. You then cannot claim the VAT refund on that purchase.
What if the refund counter is closed when I arrive at the airport?
Refund counters at major airports like Incheon and Gimpo operate during all flight hours, but hours vary by terminal. Check your airport's website before you travel. If a counter is unexpectedly closed, contact the airport information desk immediately—they may be able to direct you to an alternative location or hold your flight if necessary.
Do I have to spend a minimum amount to get a refund?
Individual stores set their own minimums, usually between 30,000 and 50,000 won per receipt. However, you can combine purchases from the same store on the same day to reach the minimum. Some retailers have no minimum at all, so ask at the register.
Can I get a refund if I am traveling to another country through South Korea?
Yes, as long as you are leaving South Korea and not returning. You must process the refund at the airport in South Korea before you board your flight out of the country. If you are connecting through South Korea to another destination, process the refund at your final departure airport in South Korea.
What currency should I choose for my cash refund?
If you need Korean won for last-minute purchases or tips, take won. If you prefer USD or another currency, the counter will exchange it, but the exchange rate is usually less favorable than a bank rate. Credit card refunds avoid currency exchange altogether and are often the best option if you do not need cash immediately.