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| BAI research showed over 8,100 foreign passport holders abused the loophole in Korea's duty free system. / Yonhap |
By Lee Han-soo
Some foreign passport holders are abusing Korea's duty free system, according to Board of Audit and Inspection of Korea (BAI) research published Tuesday.
Foreigners can shop at any duty free stores in Korea if they have a valid passport and a plane ticket, or e-ticket.
But the law has a loophole: The Korea Customs Service does not check on items going through airports after their purchase.
This led to some foreign passport holders buying duty free items and then canceling their plane tickets, allowing them to buy at much cheaper prices.
BAI research showed over 8,100 foreign passport holders abused the loophole more than three times from January 2014 to October 2016. The value of duty free goods purchased was over 53.5 billion won ($48 million).
"The loophole can be abused by foreign passport holders who want to buy duty free products at a lower price and even sell them in Korea for a higher price afterwards," a BAI official said.
"We have notified relevant government agencies to tighten the duty free check-up systems, such as giving them the items they bought only after they go through immigration at airports."
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