To expand domestic spending by foreign tourists, new duty-free shop licenses will be issued at tourist hotspots such as Myeong-dong and Jeonju. Disclosure of import prices and information on items subject to quota tariff will be expanded so that price distortions do not occur in the distribution stage after imported goods enter the market.
The Korea Customs Service on the 27th announced its "tariff administration measures to support domestic demand revitalization" to boost momentum in the domestic economy. Recently, Korea's economy has shown weakening domestic demand capacity amid changes in tariff policy originating in the United States and an increase in overseas direct purchases, while foreign consumption and investment appeal have been rising with the spread of the Korean Wave, including K-tourism. An official at the Korea Customs Service said, "Considering this economic situation, we intend to innovate customs clearance–related regulations to actively support domestic demand revitalization."
To revitalize domestic demand, the Korea Customs Service will significantly ease regulations related to the duty-free industry. First, it will expand new duty-free shop licenses at tourist attractions such as Myeong-dong and Jeonju. It will set up a "K-content experience zone" inside duty-free shops to support experiential tourism such as traditional games and K-beauty classes. It will introduce mobile identity verification at duty-free pickup to streamline procedures, and will hold the nationwide duty-free discount event Korea Duty Free Festa (Oct. 29–Nov. 30) to boost consumption.
It will also support price stability. It plans to speed customs clearance for price-stabilizing items to reduce tariff and logistics expense passed on to consumers, and to strengthen customs control by cracking down on hoarding and cornering in bonded areas and on smuggling of key resources such as copper. To prevent price distortions in the market distribution stage after imported goods clear customs, it will block the relabeling of imported agricultural products as domestic, and expand disclosure of import prices and the customs clearance status of items subject to quota tariff.
Customs clearance and immigration services will also be improved. The "Green Cap Service," currently operating for foreign tourists at six airports and ports nationwide, including Incheon, Gimhae, Gimpo, Jeju airports and Incheon, Pyeongtaek ports, will be expanded in stages. The Green Cap Service is a system in which members of multicultural families (government employees on contract) affiliated with customs guide foreign tourists through customs-related procedures at arrival halls in various languages.
Tax administration support for domestic corporations will also be expanded. To help small and midsize enterprises secure liquidity and expand domestic investment, collateral will be omitted when extending due dates or allowing partitioning payments. Support for export refunds will also be strengthened, including locating unclaimed refunds and automatically providing refund information.
On the other hand, acts that illegally funnel domestic funds overseas, causing a decline in domestic liquidity, will be strictly cracked down on, and illegal acts such as improper importation of commercial goods and tariff evasion will be intensively policed to minimize damage to the domestic market from the increase in overseas direct purchases.
Korea Customs Service Commissioner Lee Myeong-gu said, "As our country is highly dependent on exports and thus sensitive to external shocks such as global economic fluctuations and trade regulations, revitalizing domestic demand is a key task for stabilizing the livelihood economy," adding, "We will strengthen cooperation with related ministries and the private sector and swiftly complete the tasks so that the effects of tariff administration support can be reflected in the domestic market at an early stage."