Tourist Numbers Hit Record High but Exit Tax Cuts Leave Korea’s Tourism Fund Strained
Creatrip Team
3 months ago
South Korea is seeing near-record inbound tourists in 2024, but a 3,000 won cut to the departure levy (출국납부금) — lowered from 10,000 to 7,000 won last year — has reduced revenue for the Tourism Promotion Fund (관광진흥기금). The levy historically supplies about 39% of the fund, and the cut has coincided with a nearly 10% drop in Korea Tourism Organization government support and deep cuts to infrastructure budgets. Local governments report average 20% tourism budget cuts, leading to scaled-back festivals, promotions and projects. International peers are moving the opposite way: Japan, Thailand and destinations like Bali have been increasing departure or tourism-related taxes. Lawmakers have proposed raising the levy to 20,000 won, but concerns about higher travel costs remain. Experts call for institutional fixes — such as delegating levy adjustments to regulation to reflect inflation and usage — and for detailed analysis of how inbound tourism translates into fiscal and economic benefits before policy decisions are made.
