Korea Duty-Free in 2026: How the Three Main Store Types Differ

The latest 2026 Korean tax-free system is here! Which stores in Korea are duty-free? What kind of signage counts as a duty-free store? DJB breaks down Korea's tax-free spending limits, the main store chains, refund amounts, and the process, all in one place!

Image source: freepik

Which stores are duty-free in Korea?

First, know that there are two types of tax savings when shopping in Korea: "tax-free" and "tax refund." A building with a "Duty Free" sign is a duty-free store, usually located downtown or at the airport. Common duty-free chains in each region include Lotte Duty Free, Shilla Duty Free, and Shinsegae Duty Free — so what's the difference between them?

1. Lotte Duty Free

With the most locations across Korea and the largest market share, this chain — especially the branch above Lotte Department Store in Myeongdong — is a favorite among foreign tourists! Its brand lineup is incredibly comprehensive, with cosmetics and clothing lines from major names like Chanel, Louis Vuitton, and Hermès all available here.

Image source: Lotte Duty Free official website

2. Shilla Duty Free

If your main goal is shopping for beauty or fragrance products, we recommend prioritizing Shilla Duty Free! You'll find full counters for premium skincare, exclusive perfumes, and even niche brands here. Since it's housed in a standalone building, browsing never feels crowded or noisy either!

Image source: Shilla Duty Free official website

3. Shinsegae Duty Free

In recent years, it's won over many young shoppers and streetwear fans with its stylish interior and carefully curated brand selection. If you're chasing Korea's latest trends, this is a must-visit! Shinsegae Duty Free is usually the first to bring in Korea's buzziest brands of the moment, and its interior looks like something straight out of a K-drama — great for anyone hoping to snap some nice photos too!

Image source: Shinsegae Duty Free official website

Now that we've covered Korea's three major duty-free chains, which regular stores offer a tax refund service? Familiar names like Olive Young, Lotte Mart, and Lotte Department Store all offer this service — and since several different refund system companies operate in Korea, the signage isn't always identical.

As long as a store displays a "Tax Free," "Tax Refund," or similar label as shown below, it offers a tax refund service — we recommend having your passport ready before checkout to avoid delays!

Image source: Korea Tourism Organization

Duty-free allowance per entry & things to note

• Duty-free allowance per person: total purchases, including cigarettes and alcohol, must not exceed US$800 (approx. ₩1,147,664 or NT$25,136)
• You may only bring in 2 bottles of alcohol (2 liters total), 200 cigarettes, and 60ml of perfume
• Exceeding the duty-free allowance requires declaring to customs and paying additional tax — failing to declare honestly may result in confiscated goods and extra fines; carrying more than US$10,000 in cash into Korea must also be declared, or you may face fines if caught without declaring!

Tax refund eligibility, limits, and eligible items

1. Who is eligible?

• Foreign travellers who are not Korean residents and have stayed in Korea for no more than 6 months
• Hold a foreign passport, and ensure purchased items are for personal use only and will be taken out of Korea
• Overseas Korean nationals who have lived abroad for over 2 years or hold permanent residency abroad, and whose stay in Korea does not exceed 3 months

2. What's the spending threshold?

• A single transaction must total at least ₩15,000
• Total refundable purchase value per person, per visit, must not exceed ₩5,000,000

3. Which items are eligible?

• Items purchased at designated tax-refund stores, such as clothing, cosmetics, and souvenirs, are eligible — but consumables like beverages and snacks, or items that have already been used, are not

*Some locations offer instant tax refunds

*As of January 1, 2026, medical aesthetic procedures (such as plastic surgery, dermatology, and cosmetic dentistry) are no longer eligible for tax refunds

Tax refunds are further split into on-the-spot refunds, downtown refunds, and airport refunds — for a detailed breakdown of the process and refund tiers for each, check out DJB's article here 👉The 2026 complete guide to Korea's tax refund: on-the-spot, downtown, and airport refunds explained

Image source: Incheon Airport official website

Everything to know about "airport tax refunds" in Korea, step by step!

Since on-the-spot refunds are deducted directly at purchase, and downtown refunds can be processed via kiosks at major tourist shopping areas (Myeongdong, Hongdae, Dongdaemun) or duty-free stores, DJB will focus here on the more involved airport refund process!

1. Refund amount per transaction

• Refunds under ₩75,000 per transaction can be processed directly at a kiosk; if the refund exceeds ₩75,000 (meaning a purchase over ₩1,000,000), you'll need to go to the customs refund counter instead

*Items requiring customs processing need inspection and stamping before being checked in, so remember not to pack them directly into checked luggage!

2. Self-service refund kiosk locations

• Since refunds under ₩75,000 can be processed via self-service kiosk, DJB has mapped out kiosk locations at Seoul's Incheon and Gimpo airports for you!

| Incheon Airport Terminal 1 |

Before departure: 3F, near counters B/E/L/M

After departure: 3F, Gate 28 (staffed counter and self-service kiosk both available), Gate 117 (self-service kiosk only)

| Incheon Airport Terminal 2 |

Before departure: 3F, near counters D/E

After departure: 3F, Gate 249 (staffed counter and self-service kiosk both available), Gate 253 (self-service kiosk only)

| Gimpo Airport |

Before departure: 2F departure hall, near Gate 1 (staffed counter and self-service kiosk both available)

After departure: opposite Gate 36 (self-service kiosk only)

*That said, staffed counters and kiosks may occasionally move locations, so always follow the actual signage on-site!

3. Refund process

Once you spot a store with tax-refund signage, show your passport at checkout to receive your refund slip. Once your purchase amount qualifies, follow these steps:

• Before check-in, sort your purchases into "self-service refund" and "requires customs declaration" categories
• At the airport, find a self-service refund kiosk first, scan your passport and refund slip (the one with a barcode) — if the "customs confirmation" field shows O for all items, you don't need to visit customs for inspection or stamping; if any field shows X, bring those items to the nearby "Customs Declaration" counter for inspection
• After clearing security and departure, head to the refund counter/kiosk to collect your cash! (Not needed if you chose a credit card refund)

Image source: Incheon Airport official website

FAQ

Q1: Can I wear clothes I bought in Korea right away?

If you've already completed an on-the-spot or downtown refund, yes. But for items requiring an airport refund — like a high-value single purchase or a large total refund amount — we recommend keeping tags on and not wearing the item yet, in case failing a customs inspection means you don't get your refund.

Q2: How much tax refund would I get on a ₩100,000 purchase?

The refund rate ranges from 4.8-7%, so you'd get back roughly ₩6,000-7,000 — it varies by tier!

Q3: What do you need to prepare for a tax refund?

Your refund slip, passport, and credit card — if customs inspection is required, you'll also need to show the purchased items themselves.