South Korea to drop cosmetic surgery tax incentives that have fuelled wave of medical tourism
South Korea to end tax incentives for cosmetic surgery
- South Korea is set to discontinue its 10 per cent VAT refund for foreign patients undergoing cosmetic surgery, with the incentive expiring on December 31.
- Introduced in 2016, the tax break was instrumental in establishing Seoul as a leading global destination for medical tourism, particularly for plastic surgery and dermatology.
- In 2024, refunds to international patients reached a record 95.5 billion won, contributing to a total medical spending by foreign visitors of 1.24 trillion won.
- The number of foreign patients seeking medical services in South Korea surged to 1.17 million in 2024, with Seoul attracting about 85 per cent of this medical tourism.
- Industry bodies, including the Korean Association of Plastic Surgeons, have voiced concerns that the removal of the refund could diminish South Korea's competitiveness and deter price-conscious international patients.