Central Seoul district candidate pushes foreign tourist tax

Lee Dong-hyun, center, the ruling Democratic Party of Korea's (DPK) candidate for head of central Seoul's Jung District, campaigns in the district, Sunday, alongside DPK floor leader Rep. Han Byung-do, left, and Rep. Park Sung-joon. Courtesy of Lee Dong-hyun's campaign

The increasing number of international tourists visiting Korea has prompted calls to review the introduction of a tourist tax to cover local government expenses to address problems resulting from overtourism.

The idea was floated recently by Lee Dong-hyun of the ruling Democratic Party of Korea (DPK), a candidate for head of Jung District in central Seoul, with party leaders also supporting the suggestion.

Lee has made an international tourist tax a centerpiece of his campaign pledges, promising to turn the tourism boom into benefits for residents.

“Jung District is the most visited district in Korea among foreigners, yet the burden of waste and noise falls entirely on residents,” Lee said during a Sunday campaign rally. “But not a single benefit from that prosperity flows back to our residents. I will absolutely open the floodgates of our district's development through the introduction of a foreign tourist tax.”

Jung District, located at the heart of Seoul, is home to some of Seoul's most iconic landmarks, including Myeong-dong, Mount Nam, Namdaemun Market, Dongdaemun Design Plaza and Cheonggye Stream. Myeong-dong alone drew some 4.5 million foreign visitors in the first half of last year, the highest among Seoul's major commercial districts.

Lee's pledge comes as the number of international tourists visiting Korea is setting all-time records.

International tourist arrivals reached 2.03 million last month, up 19 percent from the year before, according to the Ministry of Culture, Sports and Tourism. It marked the second consecutive month that arrivals have topped 2 million, after crossing that threshold for the first time in March.

Crowds fill Myeong-dong in Jung District, Seoul, May 1. Yonhap

Total tourist arrivals surpassed 18.9 million last year, exceeding the previous all-time high of 17.5 million set in 2019. Building on that momentum, the Korea Tourism Organization said it aims to attract 30 million tourists by 2028.

Korea currently has no foreign tourist tax. In 2014, a group of lawmakers introduced a bill to create one, but it failed to pass. In 2012, Jeju Island pursued a levy to protect its UNESCO World Heritage sites, but that effort was shelved.

"I am preparing a phased plan ranging from voluntary agreements to ordinance revisions ... I'll complete a cycle in which half the tax revenue returns to residents' everyday needs and the remaining half is reinvested in tourism," Lee said.

In an earlier interview with a local media outlet, Lee said his proposed tourist tax is an accommodation tax. He held up Japan as a model, where major cities like Kyoto, Osaka and Tokyo collect accommodation taxes and a 1,000 yen ($6) departure tax is charged when leaving the country, a fee set to triple to 3,000 yen in July.

The candidate outlined measures to implement the tax, such as enacting a local ordinance to impose a district-level contribution, saying that if elected, he would discuss the matter with hotel operators in the region. He also said enacting a new law or amending the local tax law were other options.

DPK lawmakers who joined the Sunday rally endorsed Lee's proposal. The party's floor leader, Rep. Han Byung-do, called the foreign tourist tax a sound policy for boosting local governments' fiscal self-sufficiency and pledged party-wide support.

Rep. Park Sung-joon also said the previous district chief had done nothing while Jung District's finances slid into deficit, and vowed to back discussions of the tax at the National Assembly.

Lee, Han and Park pledged to channel revenue from the tax into senior care, youth employment and small business support. They also promised to establish a joint consultative body involving the Seoul Metropolitan Government, Jung District Office and the National Assembly to fast-track its introduction.