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Foreign tourists rushing to cosmetic clinics before longtime VAT refund program ends

Published: 18 Dec. 2025, 07:00

JIN MIN-JI
[email protected]

A model demonstrates receiving a beauty treatment at Mili Clinic in Gangnam District, southern Seoul, on Dec. 12. [PARK SANG-MOON]

Years of dermatology clinic–led efforts — including foreign-language staff, VAT refund devices and aggressive overseas marketing — combined with government initiatives to boost inbound tourism have driven a surge in foreign aesthetic and dermatology patients. With the VAT refund program for cosmetic procedures set to expire at year-end, cosmetic and dermatology clinics are now bustling with foreign patients, many lining up for popular treatments.

“I moved up my trip to Korea for a beauty procedure before the tax refund program ends this year.” said Fern, a 22-year-old student from Thailand, who was taking photos on the street of Gangnam in southern Seoul with her friend after getting a beauty treatment on Dec. 9. “I came for an InMode skin-lifting procedure because it’s cheaper here than in my home country, as I only paid around 550,000 won ($370),” she added.

Some doctors say they’re seeing the same trend among frequent visitors.

“Many foreign customers are aware that the tax refund program is ending,” Shin Dong-ha, a CEO at Mili Clinic in Gangnam told the Korea JoongAng Daily. “So frequent visitors — those who come to Korea for beauty procedures two or three times a year — have been making advance payments ahead of the program’s expiration.”

In July, the Ministry of Economy and Finance announced to scrap the provision that allowed foreign patients to reclaim the 10 percent value-added tax on cosmetic and dermatological procedures — including skin lifting, rejuvenation and fat dissolving injections — from the government’s tax plan. It was finalized after the National Assembly omitted related clauses from the latest revision that passed earlier in December.

The decision came as the number of medical tourists reached 1.17 million last year, nearly four times the government’s original target of attracting 300,000 foreign patients when the program was first introduced in 2016, according to Korea Health Industry Development Institute.

An employee demonstrates how to use the value-added tax refund device at Mili Clinic in Gangnm District, southern Seoul, on Dec. 12. [PARK SANG-MOON]

Of all patients, 56.6 percent visited dermatology clinics, including cosmetic dermatology, followed at a distance by plastic surgery (11.4 percent) and internal medicine (10 percent). Japanese patients made up the largest share at 37.7 percent, followed by Chinese (22.3 percent) and Americans (8.7 percent).

The short-term demand spike was visible on Unni — a medical beauty platform that allows users to find clinics by treatments, connect with them for consultations and compare prices.

Foreigners’ consultations and reservations made through the app — which provides services in four languages — doubled from July to November compared to the same period a year earlier. These were largely led by Japanese and Chinese customers.

“Along with the end to the tax refund program, the government’s active efforts to attract foreign tourists and the rapid rise of Korean beauty products all seem to have contributed to the recent surge in foreign medical tourists,” said Hwang Jo-eun, a communications executive for Unni operator Healing Paper.

While many may be disappointed by the end of the program, doctors remain optimistic that tourists will continue to be drawn to the country for medical services.

“Considering the commission foreigners have to pay to the tax refund company, their actual refund rate is less than 10 percent,” said Shin. “That’s better than no refund at all, but it doesn’t seem significant enough to influence the travel decisions of occasional visitors who happen to make a trip. The VAT refund operator would feel the impact more than we would,” he added, noting that Chinese customers — a major group — tend to prioritize completing all necessary beauty treatments during a visit rather than focusing on price.

Other doctors agree.

“Tourists are expected to continue visiting Korea even after the tax refund program ends, as they seek beauty treatments for reasons beyond price,” said another doctor who runs a cosmetic dermatology clinic in Gangnam, speaking on the condition of anonymity.

He explained that Chinese visitors are often reluctant to receive beauty treatments in their home country due to concerns about counterfeit products, as the Chinese government limits the import of overseas medical equipment. As for Japanese visitors, cosmetic dermatology is less common in Japan, where doctors tend to view beauty treatments as the domain of aesthetic clinics, he added.

Some experts believe the end of the tax refund program could serve as an important tipping point for Korea’s tourism industry.

“The conclusion of the tax refund program comes at an appropriate time and could act as a catalyst for creating a healthier medical tourism system,” said Go Gye-seong, professor at Kyungnam University’s Department of Travel, Aviation and Tourism.

“Until now, most tourists have been heavily focused on fashion and cosmetic treatments. But as tourism trends increasingly shift toward experiences focused on well-being and personal health, interest may expand beyond dermatology to areas such as traditional medicine. This shift could also help revitalize regional tourism — moving away from its current Seoul-centric focus — by promoting diverse offerings such as forest retreats and spa experiences,” Go added.

BY JIN MIN-JI [[email protected]]