The duty-free allowance for travelers entering South Korea will be raised to $600 from the current $400 on Sept. 5, the Ministry of Strategy and Finance said Wednesday. This is the first time that the ceiling has been raised since 1988.
The government also plans to reduce taxes on travelers who voluntarily report items they are bringing in. They are expected to have a 30 percent tax deduction of up to 150,000 won ($147). However, those who report untruthfully will have to pay additional tax. The additional tax rate will be raised to 40 percent from the current 30 percent. Those who are caught not reporting items twice in two years will have their tax rate raised to 60 percent.
The government plans to submit the proposals for the related revisions at the September National Assembly session.