2026 Korea Tax Refund Guide : How to Get Money Back

Hi everyone! As someone living in Korea, I know one of the biggest draws for my friends visiting from overseas is the shopping. I mean, between the massive skincare hauls at Olive Young, the trendy fast fashion in Hongdae, and the amazing finds in department stores like Lotte or The Hyundai Seoul, it is hard to resist.

But here is the thing: every time you buy those face masks or that K-pop album, you are paying a 10% Value Added Tax (VAT). And as a tourist, you are entitled to get most of that back! Honestly, I see so many tourists skip this process because they think it is too complicated. It used to be, but not anymore. It is 2026, and the Korea tax refund system is so much easier now. Trust me, it is your money, and it is worth taking a few simple steps to reclaim it. Let’s break down exactly how you do it efficiently.

1. First, The Basics: Are You Eligible?
2. Method 1: The “Easiest” Way (Immediate Refund)
3. Method 2: The “Classic” Way (Airport Refund)
4. The “Downtown” Option: Pros and Cons
5. Quick Comparison: Which Method is Best?
6. My “Please Don’t Forget This” Checklist
7. Quick 2026 Updates: Medical & Hotels

First, The Basics: Are You Eligible?

Before you start collecting receipts, let’s make sure you qualify. This is pretty simple, but strict. You can apply for a tax refund if you fall into one of these categories:

• You are a foreigner visiting Korea for less than 6 months.
• You are an overseas Korean (living abroad) visiting for less than 3 months.
• You are not earning any income here in Korea.
• You are taking the goods out of Korea within 3 months of the purchase date.

Look for the Logo: You cannot get a refund at just any mom-and-pop store. You need to look for the “Tax-Free” or “Tax Refund” logos at store entrances or cash registers. The two main companies you will see are Global Blue and Global Tax Free (GTF). Fortunately, most major stores in Myeongdong, Gangnam, and major tourist areas are part of this system.

Method 1: The “Easiest” Way (Immediate Refund) 🛍️

This is the best thing the government has introduced, in my opinion. Many stores—especially places like Olive Young, major convenience stores (GS25, CU), and department stores—offer an “immediate” or “on-the-spot” refund.

This means you don’t have to go to the airport kiosk later. You simply pay the discounted price right there.

How it works

You pay the price minus the tax at the cashier. For example, if an item is 33,000 KRW, you might only pay 30,000 KRW.

The Critical Rules (Updated for 2026)

• Purchase Range: The purchase must be between 15,000 KRW and 1,000,000 KRW. (The minimum was lowered from 30k, and the max raised from 500k—a huge win for tourists!).
• Total Cap: There is a total cap of 5,000,000 KRW for all your immediate-refund purchases during your trip.
• Requirement: You MUST present your physical passport. A photo on your phone usually won’t work because they need to scan the chip or strip.

💡 Local Insight: If you are a big spender and plan to buy a luxury bag worth 2 million KRW, you cannot use the Immediate Refund method. You will have to use Method 2 (Airport Refund) for that specific item.

Method 2: The “Classic” Way (Airport Refund) ✈️

This is for everything else. Maybe the store didn’t offer an immediate refund, or you bought a luxury item over the 1 million KRW limit. This is the process you will follow at the airport (like Incheon Airport – ICN) when you leave.

It sounds like a lot of steps, but it is mostly just scanning your passport at a machine. Here is the step-by-step workflow:

Step 1: At the Store

When you pay, say, “Tax refund, please!” (In Korean: “Tax refund juseyo” / 텍스 리펀 주세요). They will ask for your passport and print a special, long tax refund receipt (sometimes enclosed in an envelope). KEEP THIS. A regular credit card slip is not enough.

Step 2: At the Airport (Before Check-in)

Arrive a little early. Go to your airline counter and get your boarding pass. Tell the agent, “I have tax refund items in this bag.” They will weigh and tag your bag but give it back to you. DO NOT CHECK YOUR LUGGAGE YET.

Step 3: Find the Kiosk (Landside)

Go to the Tax Refund Kiosks near the customs counter. Scan your passport. The system has electronically collected most of your receipts! It will show you your total refund amount.

• If it says “OK” or “Approved”: You are good to go.
• The “Customs” Exception: If your total refund is very large, or if any single refund amount (not purchase price) is over 75,000 KRW, the kiosk will tell you to go to the Customs Officer.

[Image: Travelers using the automated Tax Refund Kiosks at Incheon International Airport]

Step 4: Customs Inspection (Only if required)

If the kiosk flagged you, go to the Customs declaration counter (usually right next to the kiosks). Show them your passport, receipts, and the actual unopened goods. This is why you didn’t check your bag! Once they stamp your form, you are done.

Step 5: Check Your Bag & Get Money

Take your luggage to the “Oversized Baggage” counter (nearby) to drop it off. Go through security and immigration. Once you are in the duty-free area (Airside), follow the signs to the Tax Refund counters (At ICN Terminal 1, they are usually near Gate 27/28; at Terminal 2, near Gate 253).

Hand them your passport, and they will give you your refund in Cash (KRW, USD, CNY) or credit it back to your card.

The “Downtown” Option: Pros and Cons

There is also a “City” or “Downtown” refund option at booths in major tourist areas like Myeongdong or Dongdaemun. To be fair, it is more complicated.

You get the cash immediately in the city, BUT they will put a “hold” (deposit) on your credit card. You STILL have to visit the airport customs/kiosk to verify you are leaving. If you forget to scan your passport at the airport, they will charge your credit card the refund amount plus a penalty. I usually recommend sticking to the Immediate or Airport Kiosk methods for simplicity.

Quick Comparison: Which Method is Best?

Feature	Immediate Refund (Store)	Airport Refund (Kiosk)
Convenience	⭐⭐⭐⭐⭐ (Highest)	⭐⭐⭐ (Requires queuing)
Purchase Limit	Under 1 Million KRW	No Limit
Money Back	Instant discount at register	Cash/Card after security
Passport	Physical Required at store	Required at Kiosk/Counter

My “Please Don’t Forget This” Checklist 📌

I have seen my friends make small mistakes that cost them their refund. Here is what you need to remember to ensure you don’t leave money on the table.

• PASSPORT, PASSPORT, PASSPORT: You cannot get a refund without it. You need it at the store when you buy, not just at the airport. A physical passport is best.
• ASK FOR THE REFUND SLIP: A normal receipt is useless. You must ask for the “Tax Refund Receipt” (환급 전표).
• DON’T USE THE ITEMS: Officially, the goods must be unused and in their original packaging. Don’t wear your new jacket to the airport if you expect a customs inspection. They can check.
• YOU DON’T GET THE FULL 10%: The refund companies (Global Blue, etc.) take a service fee. Expect to get back around 5-8% of your purchase price, not the full 10%. It is still free money!
• NO REFUNDS ON “CONSUMED” ITEMS: You cannot get a tax refund on your hotel, your K-BBQ dinner, your coffee, or your subway rides. It is only for physical goods you are exporting.
• THE 75,000 KRW RULE: Remember, if any single refund amount is over 75,000 KRW, you must show the item to customs. Keep those items easily accessible in your carry-on or at the top of your suitcase.

It might look like a lot, but the whole process at the airport kiosk takes, I’m not kidding, about 30 seconds if you don’t need a customs inspection. So please, when you are shopping in Korea, keep that passport handy, collect those refund slips, and claim that cash at the airport. It is the perfect way to fund your last tteokbokki (spicy rice cake) before you fly home!

Quick 2026 Updates: Medical & Hotels

• MEDICAL TAX REFUND ENDED: As of January 1, 2026, the tax refund for cosmetic procedures (like Botox or fillers) has officially expired. This only applies to medical services; your skincare shopping at Olive Young is still 100% eligible!
• HOTELS MIGHT BE ELIGIBLE: While most services aren’t refundable, many designated tourist hotels now offer VAT refunds until the end of 2026. Ask your hotel at check-in!

Korean Culture portal KCulture.com

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