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south korea says it will stop providing tax incentives for foreign patients undergoing cosmetic surgery, ending a proposal to help soul in one of World’s busiest hub for medical tourism,
The special 10 percent value-added tax (VAT) refund was introduced in 2016 and was designed to attract international patients to approved clinics. Cosmetic and dermatological procedures.
It became a defining feature of the country’s rapidly growing plastic surgery and the skin care industry, particularly among travelers to China, Southeast Asia, and the Middle East.
The tax exemption was part of a system that allowed non-residents to reclaim 10 percent of the cost of their treatment by presenting documents at airport or city refund counters, and was implemented only in processes Performed in medical institutions officially registered with the Ministry of Health of Korea.
Eligible treatments include double-eyelid surgery, rhinoplasty, facial contouring, skin regeneration and anti-aging treatments.
According to the report, the Ministry of Economy and Finance has confirmed that the VAT refund system will end on December 31, 2025, as it was excluded from the government’s 2025 tax plan. korea herald,
Refunds paid to foreign patients reached a record 95.5 billion won (£48.49 million) in 2024, and government data shows total medical spending by foreign patients is expected to rise from about 400 billion won (£203.1 million) in 2019 to about 1.24 trillion won (£629.9 million) in 2024, with plastic surgery and dermatology accounting for about 77 percent of that increase. Is part.
The number of foreign patients coming to Korea for medical services is set to rise sharply from 610,000 in 2023 to a record 1.17 million in 2024, according to data from the Ministry of Health and Welfare.
South Korea’s capital Seoul alone accounted for nearly 85 percent of medical spending by international patients in 2024, with nearly 1 million foreign medical tourists receiving treatment there.
Seoul districts such as Gangnam, Seocho and Mapo hosted the largest number of international medical tourists in 2024, with more than 370,000 visits in Gangnam alone, followed by nearly 288,000 in Seocho and more than 124,000 visits in Mapo.
Seoul government data shows that 999,642 foreign medical tourists received treatment in Seoul in 2024, with 85.7 percent of international medical spending appearing on foreign credit cards used in the city.
The roots of South Korea’s medical tourism boom began in 2009, when the Medical Services Act was amended to allow hospitals to formally market their services to international patients.
The Korea Health Industry Development Institute (KHIDI), a government-affiliated body, established the “Medical Korea” brand to promote bundled treatments and tourism packages overseas shortly afterward.
KHIDI records show that annual foreign-patient numbers increased from about 60,000 in 2009, before the pandemic disruption, to about 2.8 million by 2019.
Cosmetic surgery rapidly emerged as a defining pillar of this field. South Korea has the highest per capita rate of plastic surgery globally, and by the mid-2010s had built an international reputation for precision facial procedures, advanced laser dermatology, and post-operative care systems specifically designed for foreign visitors.
Many international patients use dedicated medical-tourism concierge services and travel agencies in South Korea that handle logistics such as appointment scheduling, airport pick-up and accommodations, and translation assistance to help coordinate treatment and travel arrangements abroad.
Additionally, the spread of the Korean wave, or Hallyu, in the form of K-pop and Korean dramas created strong demand for their “glass skin” aesthetics from nearby markets in China, Japan, and Southeast Asia, as well as from far-flung regions.
Industry groups have expressed concern about the impending end of VAT refunds, warning that it could impact pricing transparency and competitiveness.
The Korean Association of Plastic Surgeons said the refund “serves as an important incentive for price-sensitive people” and that removing it could weaken South Korea’s ability to attract cost-conscious foreign patients. It warned: “As other countries introduce aggressive incentives, more people may move to compete medical tourism Destination.”