Tourists and locals on the streets of Myeong-dong in central Seoul [YONHAP]

The maximum limit of purchases eligible for an immediate tax refund by foreign tourists will be doubled from the current amount to 5 million won ($3,831) next year to attract overseas visitors and bolster the tourism industry, the Finance Ministry said Monday.

Currently, the country provides on-the-spot tax refunds for an individual purchase of up to 500,000 won at designated stores, with a maximum cap being set at 2.5 million won on total payments.

“Starting Jan. 1, 2024, the maximum per-payment amount for tax refunds will be raised to 1 million won and the total to 5 million won,” Finance Minister Choo Kyung-ho said during an emergency economy-related ministers’ meeting.

“The move aims to promote foreign tourists’ shopping here and to bolster the tourism industry,” he added.

At departure halls, there are no restrictions on purchases eligible for tax refunds.

BY KIM JU-YEON, YONHAP [kim.juyeon2@joongang.co.kr]