According to a report by CCTV Finance, South Korea's medical beauty industry has become increasingly popular among foreign tourists in recent years, partly due to a 10% value-added tax (VAT) refund available for certain procedures. However, the South Korean government recently decided to eliminate this tax refund policy starting next year.
This policy, which has been in effect since 2016 and has been extended multiple times, was aimed at attracting medical beauty tourists. Data shows that last year, the VAT refunds in the beauty and cosmetic sector reached 95.5 billion won, approximately RMB 490 million, which is about 2.3 times higher than in 2023.
Industry insiders are concerned that the cancellation of the tax refund may lead to a decrease in medical beauty tourists to South Korea and could encourage some medical institutions to engage in cash transactions with customers, creating a gray area.
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