Improving the Duty-Free Exemption System in Jeju

This study examines the status of the duty-free exemption system in Jeju Special Self-Governing Province and explores directions for future development. The operation of duty-free shops in Okinawa (Japan) and Hainan (China) is reviewed and improvements are proposed for Jeju’s designated duty-free shop system, including the removal of purchase frequency limits and expansion of eligible duty-free items. Based on the example of Heligoland (Germany), this study proposes an approach to designate affiliated islands as duty-free zones. Economic analysis indicates that establishing affiliated islands as duty-free zones could generate positive economic spillover effects not only in Jeju but across South Korea.