A spokesperson for Lotte Duty Free confirmed to TRBusiness that the South Korean government has canceled the $5,000 duty-free allowance for Korean outbound tourists in an effort to boost the struggling travel retail sector.
the government legislated Increased tax-free departure purchase limit In 2019, South Koreans earned between $3,000 and $5,000.
“This will benefit Korean tourists as they can now buy high-priced luxury fashion products, jewelry and more at Korean duty-free shops,” the spokesperson said in the latest announcement.
“This will definitely boost domestic consumption and also help Korean travel retailers strengthen their competitiveness when overseas travel returns to normal.”
Rakuten has offered exclusive duty-free discounts to passengers on so-called “flights to nowhere” starting in February.
“It finally happened”
While Rakuten welcomed the news, South Korea’s leading travel retailer said the $600 tax-free allowance (Korea outbound tourists) still exists. That’s up from $400 in 2014, TRBusiness reported.
“Regulatory deregulation is crucial to the growth of South Korea’s tourism industry, and it’s finally happening,” the spokesman added.
In February this year, Lotte Duty Free has started offering exclusive duty-free discounts for passengers on so-called “flights to nowhere”.
Lotte Duty Free has partnered with various domestic airlines such as Air Busan, t’Way, Jeju Air, and Air Seoul to provide tax-free shopping benefits.
In an exclusive interview with TRBusiness’s perennially respected Top 10 International Carriers reportCEO Kap Lee discusses why adopting a unique business strategy in the medium to long term allows South Korea’s travel retail giant to pre-empt the turbulent trade environment.
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