[Exclusive] Government Likely to Allow Duty-Free Purchases on Non-Stop Overseas Sightseeing Flights... 'Duty-Free Limit Set at $600'

Duty-Free Allowance Remains at $600
Ministries of Land, Justice, and Customs Positively Review... Industry Says "Helps Revive Sluggish Mood"

On the 1st, when the mandatory 2-week self-quarantine for all incoming travelers from abroad began, arrivals at Terminal 1 of Incheon International Airport lined up to board the special airport bus for overseas arrivals heading to KTX Gwangmyeong Station. / Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Jang Sehee] The government plans to allow the use of duty-free shops even when using the new travel product called 'non-landing overseas sightseeing flight,' where passengers fly over foreign airspace without landing and return directly to Korea. The duty-free limit is known to remain the same as before, at $600 (approximately 660,000 KRW). This measure appears to support the aviation and duty-free industries struggling due to the prolonged COVID-19 pandemic while considering public sentiment.

According to a comprehensive report from Asia Economy on the 18th, related ministries including the Ministry of Land, Infrastructure and Transport, the Ministry of Justice, and the Korea Customs Service have all responded positively to the Ministry of Economy and Finance regarding allowing duty-free shop use for travelers on non-landing overseas sightseeing flights. A government official stated, "Each ministry has completed discussions, and an announcement is planned as early as this week," adding, "The duty-free limit per person will remain the same at $600." The current duty-free limit is not considered excessively high, and it was judged appropriate not to differentiate.

The current limit for goods that can be received at the arrival hall is $600, with separate calculations for alcohol under $400, one bottle of alcohol under 1 liter, 200 cigarettes, and 60 ml of perfume.

This measure gained momentum after Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki expressed a willingness to consider it proactively. On the 9th, Deputy Prime Minister Hong said, "There is much consideration toward allowing duty-free," and "We are reviewing it in a relatively positive direction based on the Ministry of Justice and Korea Customs Service's assessments."

To purchase duty-free goods, one must first board an 'international flight.' Qualification to buy duty-free goods is granted only when recognized as an international flight. Regarding this, the Ministry of Land, Infrastructure and Transport responded, "Even if the plane does not land and only flies over foreign airspace, it can be considered an international flight."

Also, during a non-landing flight, travelers must be recognized as overseas travelers through immigration procedures. On this, the Ministry of Justice replied, "They are subject to immigration inspection under the Immigration Control Act." According to the Immigration Control Act (departure of nationals), departure is defined as leaving the Republic of Korea for outside the country, so there is no legal issue. Previously, if passengers could not land in another country and returned, they had to return their duty-free goods.

However, the Korea Customs Service decided to separate inspections from general travelers as part of strengthened quarantine measures. The Korea Customs Service stated, "Since COVID-19 is resurging, inspections will be conducted separately from general travelers," and "We are in consultation with Incheon International Airport Corporation." Furthermore, while encouraging voluntary declarations as a basic principle, they intend to strongly respond to illegal distribution using the existing system.

The industry welcomes the allowance of non-landing sightseeing flights. A duty-free industry official said, "Duty-free shops require departure to purchase goods, but currently, domestic residents cannot travel abroad, so sales are almost nonexistent," adding, "If the government opens this opportunity, it will revive the stagnant atmosphere and somewhat help sales."