South Korea says it will stop providing tax incentives for foreign patients who undergo cosmetic surgery, ending an offer that helped turn Seoul into one of the world’s busiest hubs for medical tourism.
The special 10 per cent value-added-tax (VAT) refund was introduced in 2016 and designed to draw international patients to approved clinics for cosmetic and dermatological procedures.
It became a defining feature of the country’s booming plastic surgery and skincare industry, particularly among travellers from China, Southeast Asia, and the Middle East.
The tax break was part of a system that allowed non-residents to reclaim 10 per cent of their treatment costs by presenting documentation at airport or downtown refund counters, and was applied only to procedures performed at medical institutions officially registered with Korea’s health ministry.
Eligible treatments included double-eyelid surgery, rhinoplasty, facial contouring, skin regeneration and anti-aging therapies.
The ministry of economy and finance confirmed that the VAT refund system will expire on 31 December 2025, after it was excluded from the government’s 2025 tax plan, reported the Korea Herald.
Refunds paid to foreign patients hit a record 95.5bn won (£48.49m) in 2024, and government data show total medical spending by foreign patients rose from about 400bn won (£203.1m) in 2019 to about 1.24 trillion won (£629.9m) in 2024, with plastic surgery and dermatology accounting for roughly 77 per cent of that growth.
According to data from the ministry of health and welfare, the number of foreign patients visiting Korea for medical services reached a record 1.17 million in 2024, up sharply from 610,000 in 2023.
South Korea’s capital Seoul alone accounted for roughly 85 per cent of medical spending by international patients in 2024, with nearly 1 million foreign medical tourists receiving treatment there.
Seoul districts like Gangnam, Seocho, and Mapo hosted the largest numbers of international medical tourists in 2024, with Gangnam alone accounting for more than 370,000 visits, followed by Seocho with about 288,000 and Mapo with more than 124,000.
Seoul government data shows that 999,642 foreign medical tourists received treatment in Seoul in 2024, with 85.7 per cent of international medical spending appearing on foreign credit cards used in the city.
The roots of South Korea’s medical tourism boom date back to 2009, when the Medical Service Act was amended to allow hospitals to formally market their services to international patients.
The Korea Health Industry Development Institute (KHIDI), a government-affiliated body, established the “Medical Korea” brand shortly after, promoting bundled treatment-and-tourism packages abroad.
KHIDI records show that annual foreign-patient numbers rose from roughly 60,000 in 2009 to nearly 2.8 million by 2019 cumulatively, before pandemic disruption.
Cosmetic surgery quickly emerged as a defining pillar of the sector. South Korea has one of the highest per-capita rates of plastic surgery globally, and by the mid-2010s had built an international reputation for precision facial procedures, advanced laser dermatology, and post-operative care systems designed specifically for foreign visitors.
Many international patients use dedicated medical-tourism concierge services and travel agencies in South Korea that handle appointment scheduling, logistics such as airport pick-ups and accommodation, and translation support to help coordinate treatment and travel arrangements while abroad.
Additionally, the spread of the Korean wave, or hallyu, in the form of K-pop and Korean dramas created a strong demand for their “glass skin” aesthetics from nearby markets in China, Japan and Southeast Asia, as well as farther afield.
Industry groups have expressed concern about the impending end of the VAT refund, warning it could affect pricing transparency and competitiveness.
The Korean Association of Plastic Surgeons said the refund “served as a significant incentive for those sensitive to price” and that its removal could weaken South Korea’s ability to attract cost-conscious foreign patients. It warned: “As other countries offer aggressive incentives, more people could shift to competing medical tourism destinations.”
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