South Korea to end cosmetic surgery tax break that fuelled medical tourism boom
The Korean Association of Plastic Surgeons warned that ending the VAT refund scheme could drive foreign patients to rival destinations
South Korea launched the 10 per cent value-added tax (VAT) refund scheme in 2016 for visitors going under the knife for procedures such as facelifts, skin revitalisation, breast augmentation and double-eyelid surgery to boost the appeal of its aesthetic medicine trade.
But the government announced earlier this month that the perk will end on December 31, a decision decried by the Korean Association of Plastic Surgeons.
The group said ending the programme would raise clients’ costs and undermine pricing transparency, a feature that had helped draw thousands of foreign patients to the country’s beauty clinics.
“The tax refund system, created to attract foreign patients, has served as a significant incentive for those sensitive to price,” an official at the organisation told the Korea Herald.
“Ending it removes a key factor behind Korea’s influx of foreign patients. As other countries offer aggressive incentives, more people could shift to competing medical tourism destinations.”