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[Apha Biz=(Chicago) Reporter Paul Lee] Lotte Hi-Mart will implement an "immediate refund service for VAT" for foreign tourists at all 360 offline stores nationwide from the 14th.
If you use the service, you can pay with the amount deducted from VAT and purchase the goods as soon as you present your passport at the purchase site. Unlike other ex-post tax refunds, benefits are provided without having to go through separate procedures.
Lotte Hi-Mart plans to provide conditions for foreign tourists to shop more conveniently through the implementation of the service. The minimum standard amount for refund is more than 30,000 won. The refund limit is less than 500,000 won per transaction.
According to Lotte Hi-Mart, sales of foreign tourists have been on a steady rise since the second quarter of last year. Sales of foreign tourists at Lotte Hi-Mart in the first half of this year have quadrupled from the same period last year. Popular items included mobile, tablet PCs, and electric rice cookers.
Meanwhile, the government announced on the 27th of last month the '2023 Tax Law Amendment', which will take effect next year. Under the revision, the minimum standard amount for post duty-free refund will be lowered from more than KRW 30,000 to more than KRW 15,000 per case, and the immediate refund limit will be raised to less than KRW 700,000 from less than KRW 500,000 per transaction.
According to the industry, the number of Chinese travelers is also expected to increase as the Chinese government has recently allowed group tours to South Korea. According to Lotte Hi-Mart, Chinese sales accounted for about 30% of all foreign tourists' sales since 2019.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
