Korea's Cosmetic Tourism Surges, VAT Refunds End 2025
Dermatology and plastic surgery accounted for 74.1% of foreign patient visits to South Korea in 2025, reaching 1.55 million, as the cosmetic VAT refund scheme expired.
Cosmetic Specialties Drive Medical Tourism Growth
South Korea's medical tourism sector saw a significant concentration in aesthetic procedures last year. In 2025, dermatology and plastic surgery clinics recorded a combined 1.55 million foreign patient visits, according to data from the Korea Health Industry Development Institute (KHIDI).
This figure represents an 82.5 percent increase from 846,889 visits in 2024 and more than quadrupled the 2023 total. These two specialties alone constituted 74.1 percent of all foreign patient visits across medical departments in Korea, up from 68 percent in 2024 and 52 percent in 2023. Rep.
Nam In-soon of the ruling Democratic Party of Korea released these statistics, highlighting a growing reliance on aesthetic treatments to attract international medical travelers.
Dermatology Leads Patient Influx from Asia
The surge in patient numbers was largely driven by dermatology, which saw foreign patient visits jump 86.2 percent to 1.31 million in 2025, from 705,044 in the previous year. Plastic surgery visits also rose, increasing 64.3 percent to 233,100 patients.
Dermatology alone made up 62.9 percent of the total foreign patient count in 2025, with plastic surgery contributing 11.2 percent. This trend was particularly evident among visitors from Asia, where dermatology and plastic surgery accounted for 89 percent of Taiwanese patients, 82.8 percent of Japanese patients, and 82.5 percent of Chinese patients.
Additionally, nearly half of Korean medical institutions' overseas expansion notifications between 2021 and 2025, specifically 97 out of 203, involved dermatology or plastic surgery services.
VAT Refunds Double Before Scheme Expiration
The growth in cosmetic medicine coincided with a sharp rise in value-added tax (VAT) refunds claimed by eligible foreign tourists. These refunds reached 196.4 billion won ($146.7 million) in 2025, more than doubling the 95.5 billion won recorded in 2024, according to figures released by Rep. Nam.
The number of refund claims also increased significantly, by 69.9 percent, to 1.72 million from 1.01 million. The VAT refund program, which allowed foreign visitors to reclaim the 10 percent tax paid on cosmetic and dermatological procedures, was introduced in April 2016 but expired at the end of 2025 after the government chose not to extend it.
Skin treatments, including rejuvenation, whitening, anti-aging, and pore reduction, accounted for a substantial portion of this increase, with 987,909 claims in 2025, over triple the 308,341 claims from 2024.
Implications for Asia's Medical Tourism Sector
The expiration of Korea's VAT refund scheme for cosmetic procedures at the end of 2025 could impact the country's competitiveness in medical tourism, particularly for Asian beauty brands and clinics targeting international patients. While the program generated cumulative refunds of 400.8 billion won through December 2025, with nearly half of that in 2025 alone, Rep.
Nam In-soon has called for an assessment of its effectiveness before any potential reinstatement. Policymakers will need to consider tax fairness between foreign visitors and Korean residents, fiscal implications, and the allocation of medical resources.
For beauty businesses in Asia, the shift away from incentives for cosmetic tourism may require a re-evaluation of market strategies for attracting patients to Korea, potentially encouraging diversification of services or exploring opportunities in other regional hubs.
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