Korean government to raise the tax exemption limit for travelers' carry-on goods, considering income has increased and tourism industry needs support

The deputy prime minister said the government will work to increase the tax exemption limit for travelers' carry-on goods, considering that per capita income has increased and that support for the tourism industry is needed. He also said the government will push to not tax interest and transfer income earned by non-residents and foreign corporations from trading Korean government bonds and currency stabilization securities.

Deputy Prime Minister and Minister of Strategy and Finance Choo Kyung-ho said, "We will push for an increase in the tax exemption limit for travelers' carry-on goods fixed after 2014."
When the system was introduced in 1979, it was 100,000 won and it rose  to 300,000 won in 1988, and it was set at 600 dollars in September 2014 after 400 dollars in 1996.
The government says that the tax exemption limit needs to be raised considering that per capita income increased 30% from 30.95 million won in 2014 to 40.25 million won last year, and that support for the tourism industry, which is slow to recover, and strengthening competitiveness in the duty-free industry.
Deputy Prime Minister Choo explained, "We also considered that the level of duty-free limits of neighboring competitors such as China's 5,000 yuan ($776) and Japan's 200,000 yen ($1821)."
However, Deputy Prime Minister Choo said, "There are many countries similar to the current level of $600," adding, "Since it has been a long time since it has been set at $600, we will raise it to $800 to revitalize tourism."

In addition, Deputy Prime Minister Choo said he would push to not tax interest and transfer income earned by non-residents and foreign corporations from trading Korean government bonds and currency stabilization securities.
The government explains that if foreigners' investment in government bonds increases, they can also expect stability in the government bond and foreign exchange markets, such as a cut in government bond rates and a fall in exchange rates.

However, since customs inspections of tourists are still conducted only to some, many people shop above this duty-free limit.