South Korea cancels tax incentives for cosmetic surgery

The South Korean government has decided to cancel tax incentives provided to foreign patients in the field of cosmetic surgery. This was reported by Zamin.uz.

This decision may prompt a reassessment of the country's competitiveness in the medical tourism sector. Previously, in 2016, a system was introduced to refund a 10% value-added tax for cosmetic surgery procedures for foreign patients.

This incentive mainly covered procedures such as facelifts, breast augmentation, and skin rejuvenation. This measure helped increase the flow of medical tourism to the country.

However, starting from December 2024, these incentives will be canceled. According to the government, this decision is aimed at strengthening the domestic market and maintaining its advantage over competing countries like Singapore and Thailand.

Nevertheless, this change is being criticized by South Korea's plastic surgeons association. They emphasize that canceling tax incentives may lead to price increases, a decrease in the flow of foreign clients, and negatively impact the country's economy.

According to data, in 2024, over 1.17 million medical tourists visited South Korea, spending approximately 840 million dollars. Medical tourism constitutes an important part of the country's economy.

However, this decision may create new opportunities for other countries, including Singapore and Thailand. China and Southeast Asian countries are also striving to strengthen their positions in the medical tourism sector.

Therefore, South Korea needs to develop new strategies to maintain its position in the competition.