The South Korean government has ended the 10% VAT refund program for tourists undergoing cosmetic surgery. The private sector warns that revoking the tax refund will undermine competitiveness. The program, which had been in place since 2559, aimed to attract customers and stimulate the medical market.
December 11, 2568-The South Korean government is preparing to end the 10% VAT refund program for foreign tourists who undergo cosmetic surgery. The measure is scheduled to end on December 31st.
The tax refund program has been in effect since 2559 with the primary objective of attracting medical tourists and stimulating the growth of the domestic cosmetic surgery market. Eligible services include various types of cosmetic surgery such as facelifts, skin rejuvenation, breast augmentation, and double eyelid surgery.
However, the decision to end the measure has raised concerns within South Korea's medical industry, particularly the Korean Society of Surgeons, which warned that revoking this privilege would lead to higher costs for patients and could reduce pricing transparency, a key factor in attracting a large number of foreign patients to domestic clinics.
Officials from the Surgeons' Association stated that tax refund systems are a primary incentive for customers who prioritize price.
Analysts estimate that ending the tax rebate program could impact South Korea's share of the medical tourism market, as it may cause foreign patients to consider seeking treatment in competing countries in the region that offer more attractive medical benefits or prices. The cosmetic surgery markets in East and Southeast Asia are already facing increasing competition.
The cosmetic surgery industry in South Korea is a key sector that generates significant revenue and attracts foreign currency, particularly from Chinese and Southeast Asian tourists. Therefore, the removal of this tax incentive could impact the future growth of the country's medical services sector.
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