Published 01 Apr.2022 09:37(KST)
[Asia Economy Reporter Hyungsoo Park] Starting from the 1st, with the implementation of quarantine exemption for foreign entrants, expectations for the recovery of Global Tax Free (GTF), the leading domestic tax refund company, are growing.
According to the government announcement, foreign nationals who have been vaccinated are exempt from quarantine measures upon entry. Since the 21st of last month, the government has implemented a 7-day self-quarantine exemption only for overseas entrants with Korean nationality who have registered their COVID-19 vaccination history both domestically and abroad.
For the first time in over two years since COVID-19, foreign tourists visiting Korea can travel without quarantine. The number of foreign tourists visiting Korea reached a record high of 17.5 million in 2019 before the pandemic, but plummeted to 2.52 million in 2020. Last year, it recorded the lowest number since 1987 at 960,000.
A GTF official explained, "Overseas travel demand, which was suppressed due to COVID-19, is expected to increase as we enter a full reopening phase," adding, "We expect the domestic tax refund market to show a rapid recovery trend."
Despite the COVID-19 situation, Korean Wave content such as K-dramas like 'Squid Game' and 'Hellbound' and K-pop have sparked a global craze, increasing interest in Korea. Tourism demand to Korea is expected to rise.
Jinwon Kang, CEO of GTF, said, "With the reopening, pent-up overseas travel demand worldwide will explode," and added, "Riding the global Hallyu syndrome and the heightened tourism sentiment toward Korea, the domestic tax refund market will recover rapidly."
GTF's overseas subsidiaries have seen increased sales this year. The French subsidiary, which implemented quarantine-free entry for foreigners starting June last year, saw sales in January and February this year increase by 320% compared to the same period last year. The Singapore subsidiary, which opened its borders earlier than Korea, also saw sales increase by 75% in March compared to the previous month.