South Korea has revised tax regulations to benefit foreign tourists in their tax refunds for purchases made in the country.

The limit allowed for immediate tax rebate has been raised from 200-thousand won to 300-thousand won for a single purchase.

According to the Prime Minister's Office and the Finance Ministry, a Cabinet meeting on Tuesday approved a revised ordinance on tax rules for foreign visitors to this effect. The new regulation will take immediate effect.

When foreign tourists buy duty-free goods in South Korea, they can receive refunds of individual consumption tax and value added tax at an airport before departure. However, for small sum purchases, immediate tax refunds are possible at the store for travelers' convenience. This limit for such refunds has been raised to 300-thousand won.

A Finance Ministry official said the higher limit will help encourage more spending by tourists.