Deputy Prime Minister Choi Sang-mok: "50% Reduction in Duty-Free Shop License Fees... Restrictions on 2 Bottles of Duty-Free Liquor Also Lifted"

by Lee Eunjoo

Published 23 Dec.2024 15:00(KST)

Updated 23 Dec.2024 15:38(KST)

Revealed at the press conference on the 23rd

The government has decided to reduce the license fee for duty-free shops by 50% to revitalize the duty-free industry. Additionally, the limit on the number of duty-free liquor bottles carried in from overseas will be lifted.

Deputy Prime Minister Choi Sang-mok: "50% Reduction in Duty-Free Shop License Fees... Restrictions on 2 Bottles of Duty-Free Liquor Also Lifted"

Choi Sang-mok, Deputy Prime Minister and Minister of Economy and Finance, stated at a press briefing held at the Government Complex Sejong on the 23rd, "Considering the sluggish business conditions, we plan to reduce the license fee rate for duty-free shops by 50%." He explained, "As a result, the license fees paid by the duty-free industry in April 2025 will decrease from 40 billion won to 20 billion won annually."

The license fee for duty-free shops is a system that collects a certain percentage of sales to return profits from duty-free shops to society. According to the 2017 revision of the Customs Act, nationwide duty-free shops are required to pay a license fee of up to 1% based on their annual sales.

The fee rate has been applied differently depending on the sales scale. Duty-free shops with annual sales of 200 billion won or less are charged 0.1%, those with sales between 200 billion and less than 1 trillion won are charged 0.5%, and those with sales of 1 trillion won or more are charged 1%. Duty-free shops operated by medium-sized and small businesses are charged 0.01%. Based on the previous year's sales, duty-free shops pay the applicable license fee every April.

The restriction on the number of liquor bottles carried in from overseas (currently 2 bottles) will also be eased. Deputy Prime Minister Choi said, "Regarding duty-free liquor carried by travelers, this may not be a significant change, but we will lift the 2-bottle limit for now," adding, "We will allow unlimited bottles to be brought in to expand consumer choice." Liquor can be additionally brought in duty-free up to 2 bottles (under 2 liters) and $400, separate from the traveler’s duty-free limit of $800 upon entry.