Core Points - From January 1, 2026, foreign tourists in South Korea will no longer be able to apply for tax refunds on medical beauty services, as the government has decided not to extend the special VAT refund policy for foreign tourists, which will officially expire on December 31 of this year [1] - The South Korean government implemented a temporary VAT refund policy for medical beauty services in April 2016 to promote high-value medical tourism related to the Korean Wave, allowing foreign tourists to claim a 10% VAT refund when receiving services at designated medical institutions [1] - In 2024, it is estimated that 1.17 million foreign patients will visit South Korea for medical treatment, with a total medical expenditure of 1.41 trillion KRW, averaging about 1.53 million KRW per person [1] - The medical beauty tax refund applications have reached 1.01 million, with a total refund amount of 95.5 billion KRW [1] - The medical and tourism industries in South Korea are calling for the government to extend the tax refund policy, as the "cost-performance" advantage of the medical beauty industry is seen as a core competitive strength to attract foreign visitors [1] Industry Concerns - There are concerns that the lack of institutional incentives may lead some institutions and customers to evade taxes through cash transactions, resulting in regulatory difficulties and transparency issues [2] - The Ministry of Health and Welfare plans to negotiate with tax authorities to seek an extension of the temporary policy, leaving room for potential adjustments [2]