Global Tax Free "Expecting Performance Recovery upon Reopening with High Market Share"

Published 07 Mar.2022 15:38(KST)

[Asia Economy Reporter Hyungsoo Park] Global Tax Free (GTF), the No.1 tax refund company in Korea, is seeing growing expectations for performance recovery following the reopening of the economy.

On January 5, the Ministry of Economy and Finance announced the 'Partial Amendment to the Enforcement Decree of the Restriction of Special Taxation Act for 2022.' The amendment, effective from February 1, includes raising the immediate refund limit at post-tax-free shops from 2 million KRW to 2.5 million KRW per person. It also relaxes the designation requirements for eligible refund hotels.

Immediate refund is a system where foreign tourists visiting Korea receive a refund at the time of payment while shopping. The refund amount is deducted at checkout, so there is no need to visit a separate refund counter.

With the increase in the immediate refund limit, the amount of refund services used by foreign tourists visiting Korea is expected to rise. GTF is the leading tax refund company in Korea, holding a dominant position in the domestic market.

A GTF official said, "With the limit increase, the share of immediate refunds could expand to 40% of total refunds," adding, "As the proportions of immediate and mobile refunds increase, operating and maintenance costs for offline refund counters such as those at airports and downtown refund desks can be reduced."

As overseas travel demand, suppressed during the COVID-19 period, is expected to surge explosively, expectations for the reopening of global travel and tourism are also growing.

Kang Jinwon, CEO of GTF, said, "The domestic and international tax refund markets shrank along with the decrease in foreign tourists due to the COVID-19 pandemic," and added, "Soon, the pent-up demand for overseas travel worldwide will explode."