This study was designed to analyze current situation of tax exemption shopping industry of Korea as well as the choice attribute of foreign tourists for duty free shops in Korea. The study also examined factors that foreign tourists consider when they purchase goods at duty free shops. In order to achieve the purpose of the study, researchers developed a survey instrument based on related literature reviews. Data was collected from 294 foreign visitors during July 2nd to July 29th of 2001. The questionnaire has 5-point Likert Scales, ranging from very important to very unimportant. The research was conducted using statistical packages of SPSS PC+. Factor analysis and One-way ANOVA was applied in this research. The finding of this study showed that there was statistically significant different between demographic characteristics of foreign tourists and their choice attributes for duty free shops. The study also showed that the choice attributes of foreign tourists had an influence on their overall satisfactions for duty free stores in Korea.