Major department stores in South Korea announced on Sunday that they will introduce a tax refund service for foreigners starting next month.

Under the change, Lotte, Hyundai and Shinsegae department stores will immediately return the value added tax on products purchased by foreign tourists costing less than 200-thousand won per item.

The tax refund limit has been set at one million won per person during their stay.

Lotte Department Store in Sogong-dong, Hyundai Department Store in Apgujeong-dong and Shinsegae Department Store in downtown Seoul will first introduce the service, which will be extended to other stores in phases.

With the service, foreign tourists will be able to purchase goods at the tax-refunded prices at the department stores simply by showing their passports.