Starting from 6 April 2026, South Korea’s customs service has adopted a new tax refund policy. The new system makes duty-free shopping for international cruise passengers more convenient than before.
Travellers visiting South Korea by air have been able to benefit from in-city tax refunds for a long time. However, cruise passengers entering under a shore-excursion permit instead of through the standard visa process were excluded from that policy. With some 810,000 cruise passengers visiting South Korea in 2024 – a number that is expected to hit 2 million in 2026 – it became time to address that issue.
Starting from 6 April 2026, a new tax refund policy has been adopted by South Korea’s customs service. Henceforward, international cruise passengers will be eligible to receive immediate or downtown refunds of internal taxes. Those taxes include the value-added tax (VAT) as well as the individual consumption tax on products that are purchased at designated duty-free stores.
“With the implementation of this service, cruise tourists will be able to enjoy both the pleasure of shopping and the convenience of tax refunds even during their short stays in Korea,” Korea Customs Service Commissioner Lee Myung-koo said in a press release.
Tax refund specifics
The new tax refund policy for cruise passengers falls under the Restriction of Special Taxation Act and the Special Regulations for Foreign Tourists. Tourists will be able to either buy goods at tax-excluded prices directly at a range of participating stores (amounting to 23,000 stores throughout the country), or receive their tax refunds at specifically-designed city or seaport refund counters when leaving South Korea.
Whether an immediate tax exclusion is possible or not generally depends on the purchase price. According to CruiseHive, immediate refunds are applicable for purchases up to 1 million Korean won (€577) per transaction, with a limit of 5 million won overall (€2,886). For purchases of up to 6 million Korean won (€3,464) per transaction, a refund can be obtained at the city or seaport refund counters.
According to the Korea Customs Service, the new policy should shorten waiting time at customs clearances, while easing the overall tax refund process for cruise tourists, even during short stays.
The new policy comes at a time when cruise companies are faced with starkly increased costs due to the high fuel prices caused by the US-Israel war on Iran. Making tax refunds more accessible for cruise passengers could strengthen South Korea’s position as a cruise destination in a difficult market.
