South Korea will double the limit on immediate tax refunds for foreign tourists starting January 2024, Finance Minister Choo Kyung Ho said on Monday (Nov. 27), Yonhap reported.

The limit will be raised to one million won (S$1,024) worth of a local purchase and five million won (s$5,120) in total, double the amount from the current 500,000 won (S$512) and 2.5 million won (S$2,560) respectively.

There are no restrictions on purchases for tax refunds at airport departure halls.

The move aims to boost the tourism industry, Choo said.

"Starting Jan. 1, 2024, the maximum per-payment amount for tax refunds will be raised to one million won and the total to five million won," Choo said at the ministerial meeting.

"The move aims to promote foreign tourists' shopping here and to bolster the tourism industry."

Before the pandemic, South Korea's travel and tourism sector contributed to 4.4 per cent of the country's GDP in 2019, about 87.5 trillion won (S$90 billion), reported the World Travel & Tourism Council.

This year, travel and tourism are expected to contribute about 83.4 trillion won (S$86 billion) to the country's GDP.

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Top image via Yena Kwon/Unsplash.