Tourists Can Buy Goods from Duty-Free Shops up to $300 in Jeju

The admission fees for golf courses in Jeju Island will be lowered by about 40-50 percent, from 108,000 won to 54,000-64,800 won, in April.

In October, duty-free shops for domestic tourists will open in Jeju Island. Tourists will be able to purchase goods from the duty-free shops up to $300 at a time, four times a year.

The Ministry of Finance and Economy (MFE) announced yesterday that it will introduce a revision of the special tax regulation bill, which is designed to support the development of Jeju international free trade zone, to the special session of the National Assembly in February. The MFE explained that it decided to reduce various taxes on 15 golf courses on Juju Island in order to attract domestic golfers, who travel to other countries to play golf, and foreigners.

Therefore, the admission fees for golf courses in Jeju Island will be lowered from $100 (weekend) to $50-60, which is cheaper than the other rival countries` fees such as Japan ($150), Taiwan ($82), Guam ($70), Hong Kong ($68), and Australia ($66).

Duty-free shops for domestic tourists will be managed by a pre-exempt style. After purchasing goods at the shops, tourists will get coupons and exchange them with goods at the airport and ports.

One person can by goods up to $300 and is limited to a purchase of one bottle of liquor under $100 worth and 10 packs of cigarette. Goods over $300 worth will not be exempted from tax, and a couple will not be allowed to purchase $600 worth of product.

The companies that research advanced science and technology complexes, the investment promotion areas, and the free trade zones will receive 100 percent income and corporate tax exemptions for the first three years, and 50 percent reduction for the following two years. In addition, these companies will be exempted from tariffs on the imported research equipment and capital goods.

The MFE also decided to add eight businesses to the special tax-exemption industry types of small businesses` that will receive 10-30 percent of tax reduction. They are the science and technology service industry, film industry, performance business, news media industry, special design industry, packing and charging industry, tourism, and welfare facility management for the elderly.

Chan-Sun Hong hcs@donga.com