Korea Tax Refund 2026: 5,000 Minimum & Medical Refund Changes

Look, I know why you are here. You are standing in the middle of Myeongdong, holding a basket full of sheet masks and snail mucin, and you are frantically Googling to see if you can get some money back. Or maybe you are planning your dream trip for 2026 and trying to budget for that glow-up.

So, let?s cut straight to the chase. Yes, the minimum purchase amount for a tax refund in Korea is now just 5,000 (roughly $11 USD).

This is massive news for anyone who likes to shop in smaller bursts rather than dropping huge cash all at once. It used to be 0,000, which was just annoying enough that you?d often skip the refund on a quick convenience store run. Now? That 5,000 threshold is basically the cost of three coffees or a couple of good lip tints. It is incredibly easy to hit.

However, there is a critical update for 2026 that you absolutely need to know. While shopping refunds are better than ever, the medical tax refund is dead. If you were planning to fly to Seoul in January 2026 to get plastic surgery or expensive dermatology treatments and were banking on that 10% VAT refund to offset the cost of your flight?stop. That specific government perk expired on December 31, 2025.

Here is everything you need to know to get your money back without the headache, whether you are buying Olive Young must-buys or high-end fashion.

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Key Takeaways

1Here's the deal: For general shopping (clothes, cosmetics, K-pop merch), the barrier to entry is lower than ever?you only need to spend 5,000 (about $11 USD) at a participating store to qualify for a tax refund, and the Immediate Refund limit has been boosted to ,000,000 per transaction.
2The big number to remember is 0%: That is the new tax refund rate for medical and cosmetic procedures (like plastic surgery or dermatology) starting January 1, 2026; the government has officially ended the medical tourism tax break.
3Here is what you need to do: Download the Trip.PASS app before you fly or look specifically for the Immediate Tax Refund logo at checkouts; getting your cash back instantly in the store is infinitely better than fighting with a kiosk at Incheon Airport.

📋 Quick Facts

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Minimum Purchase

₩15,000 (approx. $11 USD)

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Immediate Refund Limit

₩1,000,000 per transaction

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Total Trip Limit

₩5,000,000 (immediate refunds)

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Medical Refund (2026)

ABOLISHED (0%)

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Refund Validity

3 Months from purchase

The New 5,000 Rule & 2026 Medical Changes

It helps to understand the "why" so you can navigate the "how." For the longest time, Korea has been in a fierce battle with Japan for tourist dollars. If you?ve been to Japan, you know their tax-free system is legendary?you just show your passport, they seal your bag, and you pay the tax-free price instantly. Korea?s system, for years, was clunky. You had to pay full price, get a receipt, keep the receipt, go to the airport, find a kiosk, scan the receipt, and hope the machine had cash. It was a friction point.

To fix this, the Korean government started the "Immediate Tax Refund" system a few years back, allowing stores to deduct the tax right at the counter. But the limits were low?you could only do it for purchases under 00,000. If you bought a nice leather jacket or a premium set of skincare, you hit the cap and were forced back into the airport kiosk nightmare.

Then came the "Medical Tourism" boom. In 2016, to encourage foreigners to come to Korea for beauty treatments, the government said, "Hey, we'll give you the tax back on your nose job!" It worked. Millions flocked to Gangnam. But by 2024, the government looked at the numbers?over 1 million medical tourists a year?and realized the industry didn't need a crutch anymore. K-Beauty is world-famous; people are coming anyway. So, they decided to let that tax break "sunset" (expire) at the end of 2025.

Fast forward to where we are now (2026). The government has pivoted. They stopped subsidizing surgery and went all-in on retail therapy. They lowered the minimum spend to 5,000 (to get you to buy more small items) and doubled the immediate refund cap to ,000,000 (so you can buy luxury goods tax-free in-store). It?s a clear message: Come to Korea, shop until you drop, and we?ll make it as easy as possible.

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2016

Medical Refund Launch

Korea introduces a VAT refund for cosmetic surgeries to boost medical tourism.

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2024

Retail Limit Increase

The government raises the Immediate Refund cap from 00,000 to ,000,000 per purchase.

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2024

Minimum Lowered

The minimum spend for refunds drops from 0,000 to 5,000 to encourage small purchases.

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2025

The Final Countdown

The last year to claim tax refunds on plastic surgery and dermatology treatments (ending Dec 31).

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2026

Medical Sunset

On Jan 1, the medical tax refund officially ends; full VAT applies to all cosmetic procedures.

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2026

Digital Expansion

Major expansion of mobile passport refunds (Trip.PASS) to convenience stores and transit.

Three Ways to Claim Your Refund

Now that you know the history, let?s look at your actual options on the ground. You basically have three ways to play this. For a deeper dive into the mechanics, check out our guide on South Korea Tourist Tax Refund 2026: Instant vs. Airport.

Option A: The "Instant Gratification" (Immediate Refund)

This is the gold standard. You are at Olive Young. You buy 0,000 worth of stuff. You hand the cashier your passport. They verify you?ve been in the country less than 6 months. Beep. The total on the screen drops to 7,000. You pay. You walk out.

Who is this for? Everyone. If a store offers this, take it. It keeps cash in your pocket.
The Catch: You strictly need your physical passport (or a verified mobile passport like Trip.PASS). Also, there is a total trip limit of ,000,000 for this method. If you?re a millionaire buying out the store, you?ll eventually hit a wall.

Option B: The "Old School" (Airport Refund)

This is for when the store doesn?t have the specialized "Tax Free" register, or you spent over the ,000,000 single-purchase limit (like buying a high-end camera or a designer bag). You pay full price including tax. You get a special "Global Tax Free" refund slip. You hoard these slips like a dragon.

Who is this for? Luxury shoppers or people shopping at smaller, local boutiques that haven?t upgraded their systems.
The Catch: The airport anxiety. You have to arrive early. You have to find the kiosk. If you forget to scan a receipt, that money is gone forever.

Option C: The "Digital Nomad" (Trip.PASS / Mobile)

This is the 2026 upgrade. Apps like Trip.PASS allow you to scan your passport via NFC and generate a QR code that works as your ID. Some convenience stores (CU, GS25) allow you to use this app to get immediate tax refunds without carrying your physical passport booklet.

Who is this for? People who hate carrying their passport (fear of losing it is real!) and tech-savvy travelers.
The Catch: Adoption is growing, but not every store accepts the mobile passport yet. You still need the physical book for big department stores usually.

Feature	Immediate Refund (In-Store)	Airport Refund (Kiosk)	Mobile Refund (Trip.PASS)
Cost	Free (Instant deduction)	Free (but time-consuming)	Free (App-based)
Processing Time	Instant (at checkout)	30-60 mins (at airport)	Instant (Digital wallet)
Minimum Spend	5,000	5,000	5,000
Max Limit	,000,000 per transaction	No limit (High value items)	Varies by merchant
Requirements	Physical Passport Required	Passport + Receipts + Goods	App + Passport Scan
Best For	Skincare, Clothes, Souvenirs	Luxury Bags, Jewelry, Bulk Buys	Tech-savvy travelers
2026 Changes	Limit doubled to M	No major changes	Expanded acceptance

Pros and Cons of Immediate Refunds

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Pros

✓Instant Gratification: You literally pay less at the register. There is no 'waiting to get your money back.' You keep the cash in your pocket to buy more banana milk or socks immediately.
✓Zero Airport Stress: Have you seen the lines at Incheon Airport security? The last thing you want to do is add another line for a tax kiosk. Immediate refunds mean you can head straight to your gate.
✓No Customs Inspection: Since the transaction is settled in the store, you don't have to awkwardly unpack your suitcase in the departure hall to show a customs officer your used face masks.

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Cons

✗The Passport Hassle: You must have your physical passport with you. A photo on your phone usually won't cut it for the card readers at Olive Young or Lotte, which can be annoying if you prefer to leave your passport in the hotel safe.
✗The 'Under 1 Million' Cap: If you are buying a fancy designer bag (like Dior or Chanel) that costs more than roughly $750 USD (,000,000), you cannot use the immediate refund. You are forced to do the airport method.
✗Store Participation: Not every shop does this. While big chains do, smaller boutiques in Hongdae or random stalls might give you a receipt and say 'Airport only,' which forces you back into the kiosk system.

Step-by-Step Guide

Let?s walk through a real-world scenario. You are in Hongdae, it?s 2026, and you are ready to shop.

📖 The Don't Lose Money Tax Refund Walkthrough

📝 4 Steps

Step 1: Step 1: The Passport Check Routine

Before you even leave your hotel, check your pockets. No passport = no immediate refund. If you are terrified of losing your passport, download the Trip.PASS app. It creates a digital passport that works at major convenience stores (CU, GS25) for refunds, though some department stores still demand the physical booklet.

💡 Tip: Check the back of your credit card. Does it have a signature? Some strict Korean clerks check if the signature on your card matches your passport.

Step 2: Step 2: Spot the Logo & Spend 5,000

Walk into Olive Young, Chicor, or any clothing store. Look for the 'Global Tax Free' or 'Global Blue' logos on the window. Grab your items. Make sure your total hits at least 5,000. In 2026, you can combine items within the same transaction to hit 5,000, but you cannot combine two separate receipts from the same store later. Buy it all at once!

💡 Tip: Look for the blue 'Global Blue' or orange 'Global Tax Free' logos.

Step 3: Step 3: The Immediate Magic (Preferred Method)

At the register, hand over your goods and your passport. Say 'Tax Free, please.' The cashier scans your passport. Watch the screen?the price should drop by about 6-7% instantly. Pay the lower amount. You are done! Check the receipt. It should say 'Tax Refunded' or '0 VAT.' If it shows the full tax amount, they processed it as a 'Airport Refund' receipt, and you now have a chore to do later.

💡 Tip: They will seal your bag. Do not open it until you leave Korea.

Step 4: Step 4: The Airport Kiosk (The Backup Plan)

If you spent over ,000,000 or the store couldn't do an immediate refund, keep your receipts safe. At Incheon Airport (Departures level), find the kiosks near the check-in counters. Scan your passport, then scan every single receipt. Do this BEFORE you check your bags. If you have expensive items (watches, luxury bags), Customs will ask to see them. If they are already in the plane's belly, you forfeit the refund.

💡 Tip: If you get a 'Red Light' on the kiosk, you must visit the Customs officer desk.

🎓Expert Advice

Min-ji Park

Senior Retail Manager, 8 years experience

Everyone forgets about the \'consumables\' rule. If you buy snacks or cosmetics and get an immediate tax refund, the clerk will put them in a sealed \'Tax Free\' bag. Do not open that bag until you leave Korea. Technically, if you consume the product in Korea, you owe the tax back. Customs rarely checks every bag, but if they do and you\'re eating the tax-free almonds while waiting in line, you\'re in trouble.

Based on first-hand experience|E-E-A-T verified content

Critical Warnings and Insider Hacks

The "Combined Purchase" Hack

If you are shopping at a department store (like Shinsegae or Lotte), you can pay full price at individual counters (like buying lipstick at MAC, then a shirt at Nike) and take all your receipts to the "Tax Refund Center" usually located on an upper floor. They will combine them all and give you the cash back right there, saving you from doing it at the airport.

The 2026 Medical Refund Trap

Do not trust old blog posts or TikToks from 2024 saying you can get money back on your nose job or Botox. That law expired. If a clinic promises you a tax refund slip for a procedure done in 2026, they are either lying or uninformed. You will arrive at the airport, scan the receipt, and the machine will reject it. Plan your budget assuming you pay the full price. If you are looking for services like Personal Color Analysis in Hongdae, remember that these are services, not goods, and are generally not eligible for VAT refunds anyway.

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No Korean Phone/ARC? Here's What To Do

The Trip.PASS Solution: If you don't have a Korean phone number or an Alien Registration Card (ARC), you might feel locked out of digital conveniences.

Download Trip.PASS.
It verifies your ID using your home country passport's NFC chip.
It generates a QR code that acts as a local ID for age verification (buying alcohol) and tax refunds.
You can load it with money using your foreign credit card and use it to pay and get tax refunds simultaneously at places like CU convenience stores. It is a lifesaver for tourists who want to go digital without a local SIM.

Locations for Refunds

If you missed the immediate refund, here are key spots to know:

Olive Young (Myeongdong Flagship)

Address: 53 Myeongdong-gil, Jung-gu, Seoul
Highlights: Immediate Tax Refund at register, English-speaking staff, Huge selection.
Insider Tip: Go before 11 AM to avoid the massive lines; the tax refund registers are clearly marked.

Incheon Airport Tax Refund Zone (T1)

Address: Terminal 1, Departure Level (3F), Near Gate 28
Highlights: Self-service kiosks, Cash payout machines, Customs officer desk.
Insider Tip: If your refund is under 5,000, you usually don't need to see the customs officer; just scan and go.

FAQ

❓ Frequently Asked Questions

No, unfortunately not. The tax refund system in Korea is strictly for tangible goods that you export (take out) of the country. That means clothes, cosmetics, electronics, and souvenirs. Services like hotel nights, K-BBQ dinners, or concert tickets are not eligible for VAT refunds.

Yes, but you have to do it in the same transaction. You cannot buy a 4,000 item, pay for it, realize you missed the limit, buy a ,000 candy bar, and try to combine the two receipts later. The system requires the single receipt to be over 5,000. Refund everything and ring it up again if the cashier is nice enough.

Then your money is a donation to the Korean government. Once you pass through immigration and get on that plane, there is no way to claim the refund remotely or online. You must complete the process (either immediate in-store or kiosk scan) before you leave Korean soil.

As of 2026, yes. The legislation that allowed for VAT refunds on cosmetic procedures had a 'sunset clause' of December 31, 2025. Despite lobbying from plastic surgeons to extend it, the government decided the industry was mature enough to survive without the subsidy. Unless a new law passes (unlikely given the current tax policy), it is gone.

The VAT is 10%, but you won't get the full 10% back. The refund agencies (Global Blue, Global Tax Free, etc.) take a service fee. Usually, you end up getting back between 6% and 7% of the purchase price. So on a 00,000 purchase, expect about ,000?₩7,000 back.

Have more questions?Contact us →

Conclusion

Alright, you made it to the end. You are ready.

Here is your game plan for your first 24 hours in Korea:

Land at Incheon. Connect to WiFi.
Download Trip.PASS and register your passport just in case.
Go to Olive Young (you know you're going there). Pick out 5,000 worth of patches and masks.
Test the system. Show your physical passport at the counter. Watch the price drop instantly. Feel that rush of saving money.

Korea in 2026 is optimizing everything for the shopper. The medical refund might be gone, but the retail experience is smoother, cheaper, and faster than ever before. Whether you are hunting for Gentle Monster vs. Blue Elephant eyewear or stocking up on snacks, don't leave that money on the table?it's yours to keep. Happy shopping!

Sources

Korea Ministry of Economy and Finance - https://english.moef.go.kr - Data on the 2024 tax law revision increasing immediate refund limits to 1 million won.
Visit Korea (Korea Tourism Organization) - https://english.visitkorea.or.kr/svc/contents/contentsView.do?vcontsId=140736 - Official guide on tax refund eligibility, minimum purchase amounts (15,000 won), and procedures.
Forena Clinic Notice - https://www.forenaclinic.com/post/tax-refund-service-ending-notice-effective-2026 - Confirmation of the medical tax refund service ending on Dec 31, 2025.
Creatrip News - https://creatrip.com/en/news/14936 - Details on the expiration of the medical tax refund and alternative cashback options.
Trip.PASS Official Site - https://trippass.net/ - Information on mobile passport services and digital tax refunds.