Tax Exemption Ceiling on Foreign Purchased Items to Be Raised to $600

SEOUL, KOREA - The government will raise the tax exemption limit on items brought in by inbound travelers to US$600 from the current $400. The Ministry of Strategy & Finance said on August 27 that it has announced a revised ordinance on the customs law to increase the ceiling by 50 percent. It has been 27 years since the government adjusted the exemption limit upward.

 

The new rule will be effective from September 5 after the government changes revision procedures quickly including the evaluation by the Ministry of Government Legislation. The same rule will be applicable also to travelers returning from Jeju Island.

 

In addition, the government will reduce the import duty by 30 percent (up to 150,000 won) to those travelers who voluntarily report their purchased items. For those who evade reporting, it will impose a surcharge of 40 percent from the current 30 percent.