2026 tax reform bill

Proposed

Where a household holding an old home in an area subject to adjustment buys a new home in such an area, the old home must be sold within two years of buying the new one. Homes, or rights to acquire homes, acquired before 3 August 2026 (or under a sale contract signed with a deposit paid before that date) keep the old rule.

Proposed

A purchased rental apartment in an area subject to adjustment whose registration lapsed automatically at the end of the mandatory rental period is excluded only where it is sold by 31 December 2027. Where the mandatory rental period is still running as of 1 January 2027, or the area is newly designated as subject to adjustment, or reconstruction or redevelopment is under way, the window is one year from the latest of the end of the mandatory rental period, the date the designation is announced, or the date of the transfer notice.

Proposed

A deadline is added. Where the rent-restraint lease ends on or before 31 December 2026, the home must be sold by 31 December 2027; where it ends on or after 1 January 2027, by the earlier of one year after the lease ends and 31 December 2029.

Proposed

The relief is confined to domestic companies, so residents are excluded, and the 31 December 2026 expiry is deleted, making it permanent. The instalment terms and the conditions on where the facility moves are unchanged.

Proposed

Liability is set by value: above KRW 1.4 billion in total published price for a one-home household (roughly KRW 2 billion at market value), and above KRW 900 million for everyone else (roughly KRW 1.3 billion).

Proposed

A one-home household deducts KRW 1.4 billion where it lives in the home, and the current KRW 1.2 billion where it does not. A married couple holding one home jointly, who have not elected the joint-owner special rule, deduct KRW 900 million each where they live there and KRW 600 million each where they do not. Corporations still get no basic deduction. (Amended at the Cabinet meeting of 1 September 2026. The original proposal was KRW 900 million for a non-resident one-home household, and for joint owners KRW 400 million plus KRW 500 million × the published price of the home lived in ÷ total published price of homes.)

Proposed

The range becomes 70% to 100%. Owners of three or more homes and owners of homes in areas subject to adjustment (one-home households excepted) face 70% in 2027 and 80% from 2028. Everyone else faces 70%.

Proposed

In 2027 the rates for two homes or fewer rise to 1.3% above KRW 600 million to KRW 1.2 billion, 1.5% to KRW 2.5 billion, 2.0% to KRW 5 billion, 2.7% to KRW 9.4 billion and 3.5% above that. From 2028 the number of homes drops out entirely: 0.5% up to KRW 300 million, 0.7% to KRW 600 million, 1.3% to KRW 1.2 billion, 2.0% to KRW 2.5 billion, 3.0% to KRW 5 billion, 4.0% to KRW 9.4 billion, 5.0% above that, and 5.0% for corporations.

Proposed

The age credit is unchanged. For 2027 the higher of a holding credit (half the residence rate: 10% for 5 to 10 years, 20% for 10 to 15, 25% for 15 or more) and a residence credit (20%, 40%, 50% on the same bands) applies; from 2028 only the residence credit applies. The cap in money is KRW 8 million for 2027 and KRW 6 million from 2028.

Proposed

The Cabinet meeting of 1 September 2026 kept the current 150%. The cap does not change. (The original proposal was 200%.)

Proposed

The income test loosens to gross salary of KRW 80 million or less (global income of KRW 70 million or less). Deferral also becomes available to someone aged 65 or over who has lived in the home for ten years or more and whose holding tax for the year (property tax plus comprehensive real estate tax, surtaxes included) is 10% or more of last year's gross salary or global income.

Proposed

Where a tax payment guarantee insurance policy is lodged as security, the interest for the deferral period is reduced, up to the premiums paid on that policy during the deferral.

Proposed

Where a one-home household sells, for KRW 3 billion or less, a home it has lived in for ten years or more, KRW 25 million a year is deducted. The part above the KRW 2.5 million basic deduction may only be set against that one home, is apportioned per person and per property (a married couple holding jointly each apply it), and is not available on transfers between related parties or by non-residents.

Proposed

Where a one-home household aged 65 or over on the date of transfer sells a capital-region home it has lived in continuously for two years and for five years or more in total during the holding period, to an unrelated third party, and moves outside the capital region within six months, capital gains tax is reduced by 50% in 2027 (capped at KRW 500 million) and 30% in 2028 (capped at KRW 300 million). The relief runs to 31 December 2028. Failing to move within six months, acquiring or moving back to a capital-region home within five years of the sale, or a household member buying the home back within five years, means paying the relieved tax plus interest of 0.022% a day within two months.

Proposed

The price ceiling for depopulating areas in the border region of the capital region rises from KRW 400 million to KRW 600 million, other areas outside the capital region and metropolitan cities are added at a KRW 400 million ceiling, and the acquisition window runs to 31 December 2029.

Proposed

The price ceiling for depopulating areas in the border region of the capital region rises from KRW 400 million to KRW 600 million, and other areas outside the capital region and metropolitan cities are added at a KRW 400 million ceiling. The window still runs from acquisitions on or after 1 January 2026.

Proposed

Where the home has been held for two years or more, two homes carry plus 5 points in 2027 and plus 10 in 2028, and three or more carry plus 10 in 2027 and plus 15 in 2028. Transfers made in 2026 at the heavier rates also get the lower rates (plus 5 points for two homes, plus 10 for three or more) when the preliminary or final return is filed on or after 1 January 2027.

Proposed

Where the household has lived in the home continuously for a year or more as of the date of the move, and moves to another city or county for high school or university, a change of workplace or transfer, an illness needing a year or more of treatment or recuperation, a transfer after school violence, study or work requiring residence abroad, or moving in to care for a lineal ascendant aged 60 or over, up to three years of the holding period counts as residence.

Proposed

Where the household has lived in the home continuously for a year or more as of the date the management disposition plan is authorised, half of the construction period from authorisation to the date the new home can be occupied counts as residence. Where the building was demolished before authorisation, the date six months back from demolition is used.

Proposed

The rate rises from 10% to 15%, a cap is introduced of KRW 200 million a year and KRW 300 million over five years (aggregated with relief for land for public works, the special treatment of replacement-land compensation, and relief for land in a restricted development zone), and the provision runs to 31 December 2028.

Proposed

Land taxed on the separate aggregate basis is added to the exclusion. The five-year approval condition and the exclusion from the tax base are unchanged.

Proposed

The distinction by number of units goes: from one unit up, the rate is 50% under the publicly supported and long-term general private schemes and 20% otherwise. The 31 December 2028 expiry is unchanged.

Proposed

Where the Farmland Act has been breached, the income is taken out of the exemption and taxed.

Proposed

Property rental income is also drawn into the minimum tax where the medical and education tax credits for compliant businesses are claimed.

Proposed

Only resident one-home owners qualify; non-residents are excluded.

Proposed

The low-priced provincial home is treated automatically without an application; only replacement and inherited homes still need one.

Proposed

Homes in depopulating areas and unsold completed homes outside the capital region are added to the qualifying homes excluded from the credit.

Proposed

Where a household that owned one home as of the date the in-kind compensation criteria were announced holds a single such right received through negotiated purchase and then sells it, the right is treated as a membership right: the part of the price up to KRW 1.2 billion is exempt and the enhanced long-term holding deduction of up to 80% applies. A home bought to live in during the project period, and the sale of that owner's compensation right, are included where sold within three years of acquisition. The provision runs to 31 December 2029.

Proposed

Homes, and membership rights that were homes before the management disposition plan was authorised, go to the long-term residence deduction. Land, non-residential buildings, and membership rights that were non-residential buildings or land before authorisation, go to the long-term holding deduction.

Proposed

Transfers up to 31 December 2027 keep 4% a year each (up to 40%). From 1 January 2028 to 31 December 2028 it becomes residence 6% a year (up to 60%) and holding 2% a year (up to 20%). From 1 January 2029 only residence applies, at 8% a year (up to 80%), and the holding component is gone. How the deduction is computed, and the basic test of three years' holding plus two years' residence, are unchanged.

Proposed

For 2028 transfers, the higher of a residence rate of 2% a year (up to 30%) and a holding rate of 1% a year (up to 15%) applies. From 1 January 2029 only the residence rate of 2% a year (up to 30%) applies. The residence component requires two years' residence, and transfers up to 31 December 2027 keep the current holding rate of 2% a year (up to 30%).

Proposed

A yearly cap per person and a cap per property each apply, limiting the deduction to KRW 2 billion in 2028 and KRW 1 billion from 2029. Where the property is co-owned or sold in parts at different times, the cap is apportioned by ownership share or by the share transferred.

Proposed

Selling a purchased rental apartment in an area subject to adjustment whose registration lapsed automatically at the end of the mandatory rental period (four-year short-term or eight-year long-term) attracts half the heavier and additional rates: for individuals, plus 10 points on two homes and plus 15 on three or more, on top of the basic 6 to 45%; for corporations, an additional 10%. The preferential long-term holding rate on gains accrued during the rental period falls from 50% to 30%. The relief applies to transfers between 1 January 2028 and 31 December 2028.

Proposed

Where the household has lived in the home continuously for a year or more as of the date of the move, and moves to another city or county for high school or university, a change of workplace or transfer, an illness needing a year or more of treatment or recuperation, a transfer after school violence, study or work requiring residence abroad, or moving in to care for a lineal ascendant aged 60 or over, up to three years of the holding period counts as residence. This counts only for the deduction rate; it does not satisfy the conditions for the enhanced one-home deduction, nor the two-year residence test for exemption on a home in an area subject to adjustment at the time of purchase.

Proposed

Time holding, alongside the existing home, a home in a depopulating or at-risk area, a rural or hometown home, a low-priced provincial home, a newly built small home of 60㎡ or less, or a home unsold after completion, counts as residence. This counts only for the deduction rate; it does not satisfy the conditions for the enhanced one-home deduction, nor the two-year residence test for exemption on a home in an area subject to adjustment at the time of purchase.

Proposed

Time letting a registered rental home (purchased rental apartments in areas subject to adjustment excepted) counts as residence and takes part of the residence rate, which becomes 2% a year up to 30% both for one-home households and for others. This counts only for the deduction rate; it does not satisfy the conditions for the enhanced one-home deduction, nor the two-year residence test for exemption on a home in an area subject to adjustment at the time of purchase.

Proposed

Where the household has lived in the home continuously for a year or more as of the date the management disposition plan is authorised, half of the construction period from authorisation to the date the new home can be occupied counts as residence and takes the residence rate: 8% a year up to 80% for a one-home household, 2% a year up to 30% otherwise. The gain attributable to settlement money paid also takes the residence rate, except that in 2028 it takes the holding rate (2% a year up to 20% for a one-home household, 1% a year up to 15% otherwise). Where the building was demolished before authorisation, the date six months back from demolition is used.

Proposed

Where a home has been converted to non-residential use, the holding period is the time actually lived in while it was a home plus the time held as non-residential. But where, at the time of sale, the home before conversion would have been subject to the heavier capital gains rates (a multiple-home owner's home in an area subject to adjustment), only the time held as non-residential counts.

Proposed

Non-business land is added to the excluded assets and gets no long-term holding deduction.

Proposed

The surcharge rises from 10 to 20 percentage points.

Proposed

The surcharge rises to 20% of the gain on non-business land.

Proposed

Only the band above KRW 4.5 billion rises, to 4%. The 1% up to KRW 1.5 billion and the 2% from KRW 1.5 billion to KRW 4.5 billion stay. Rates on separately aggregated land do not change.

Proposed

Only residents qualify; non-residents (individuals with neither a domicile nor a place of residence of 183 days or more in Korea) are excluded. The added rates are unchanged: 2% for 6 to 7 years, 4% for 7 to 8, 6% for 8 to 9, 8% for 9 to 10 and 10% for ten years or more.

Proposed

An expiry date of 31 December 2029 is set. The refund and the repurchase within the seven-to-ten-year lease term are unchanged.

Proposed

The small-home exemption runs to 31 December 2029. The size and price tests and the deemed-rent formula are unchanged.

Proposed

The scope and the 100% exemption stay as they are; the expiry date is deleted, so the relief becomes permanent.

Proposed

The scope and the 100% exemption stay as they are; the expiry date is deleted, so the relief becomes permanent.

Proposed

Where a household holding an old home in an area subject to adjustment buys a new home in such an area, the period is two years from the purchase of the new home. Homes, or rights to acquire homes, acquired before 3 August 2026 (or under a sale contract signed with a deposit paid before that date) keep the old rule.

Proposed

Apartments in the capital region must be sold by 31 December 2029, and other homes by 31 December 2031, for the relief to apply. The rates stay as they are: 100% for ten years or more of letting, 50% otherwise.

Proposed

Apartments in the capital region must be sold by 31 December 2029, and other homes by 31 December 2031, for the 100% relief to apply.

Proposed

Apartments in the capital region must be sold by 31 December 2029, and other homes by 31 December 2031, for the treatment to apply.

Proposed

The home must be sold by 31 December 2028 for the 10% relief to apply.

Proposed

The same treatment applies to such homes bought between 10 January 2024 and 31 December 2027.

Proposed

The same applies to homes bought between 1 January 2025 and 31 December 2027.

Proposed

The same five-year exclusion applies to homes bought between 28 March 2024 and 31 December 2027.

Proposed

The same rates run to 31 December 2028.

Proposed

The 40% relief and the deferral run to 31 December 2028.

Proposed

The category for carried-forward losses changes from "property leasing" to "non-residential property leasing", making it explicit that such losses are not set against income from letting residential buildings.

Proposed

The relief runs to 31 December 2027. The 100% rate and the conditions are unchanged.

Proposed

The scheme ends. Organisations designated on or before 31 December 2026 keep the old rule until their designation period expires.

Proposed

The provision expires on 31 December 2026, so the KRW 500,000 credit goes and is replaced by direct budget spending.

Proposed

Renters aged 15 to 34 also get the 17% rate, through 31 December 2029. The eligible rent ceiling rises from KRW 10 million to KRW 12 million a year.

Proposed

The income test loosens to KRW 3 million or less, and to gross salary of KRW 7.5 million or less where the only income is employment income.

Proposed

Those aged 15 to 34 are added to the 15% band.

Proposed

Where the household head and the spouse live in different cities or counties and the lineal relatives living with the spouse own no home, a worker who is the household head's spouse is added to those who may claim. The 40% rate is unchanged, and the cap of KRW 4 million covers the household head's and the spouse's claims together.

Proposed

Above KRW 100,000 the rate splits by region. For the capital region, metropolitan cities outside it and preferred areas of the capital region: 40% between KRW 100,000 and KRW 200,000, and 15% from KRW 200,000 to KRW 20 million. For other areas outside the capital region, preferred areas of those metropolitan cities and other preferred areas outside the capital region: 50% and 25%. The KRW 20 million cap is unchanged.

Proposed

The public transport add-on ends, leaving only traditional markets at 40%. The KRW 70 million income test for the 30% culture band is dropped. The add-on caps fall to KRW 2 million and KRW 1 million. The basic caps (KRW 3 million / 2.5 million; KRW 3.5 million / 2.75 million with one child; KRW 4 million / 3 million with two or more) and the 31 December 2028 expiry are unchanged.

Proposed

On top of the no-home or one-home test, every member of the household must actually live in the mortgaged home as at the end of the tax period, in the manner set by Presidential Decree. The test does not apply in unavoidable cases set by Presidential Decree, such as study or medical recuperation. The caps of KRW 6 million to KRW 20 million and the KRW 600 million standard price test are unchanged.

Proposed

For preschool children, private academy fees are confined to arts academies teaching music, art or dance. Entrance examination fees at universities established under special Acts are added for school and university students, and academy and sports facility fees are confined to children under 9, or in the second grade of elementary school or below, as at the end of the tax period. The 15% rate is unchanged.

Proposed

The expiry is deleted and the deduction becomes permanent. The scope, the KRW 3 million annual cap and the 40% rate are unchanged.

Proposed

The credit ends and the KRW 300,000 / 500,000 / 700,000 amounts go, replaced by direct budget spending.

Proposed

The disclosure test for higher-level unions is deleted; only the union receiving the dues directly, where it has 1,000 members or more, must have disclosed.

Proposed

The ceilings rise to KRW 26 million, KRW 37 million and KRW 52 million respectively.

Proposed

The maximum rises to KRW 1.8 million, KRW 3.1 million and KRW 3.6 million. The taper becomes KRW 9 million to under KRW 26 million (180/1,700), KRW 14 million to under KRW 37 million (310/2,300), and KRW 18 million to under KRW 52 million (360/3,400).

Proposed

Withholding on other personal services falls to 2%. The 20% for foreign professional athletes is unchanged, and insurance sellers, door-to-door sellers and beverage delivery workers (personal services subject to year-end settlement) stay at 3% whether or not they keep simplified books. (Amended at the Cabinet meeting of 1 September 2026. The original proposal kept 3% only for those on simplified books.)

Proposed

The exempt window widens to run from the date of conception to two years after the birth. The limit of twice per child is unchanged.

Proposed

Foster children aged 6 or under are added. The KRW 200,000 monthly cap is unchanged.

Proposed

Relief now depends on where the workplace is. In the capital region: 90% for five years for young workers, 70% for three years for the other groups. In metropolitan cities outside the capital region and in preferred areas of the capital region: 90% for six years and 75% for three years. In other areas outside the capital region and preferred areas of those metropolitan cities: 90% for seven years and 80% for three years. In other preferred areas outside the capital region: 90% for ten years and 90% for three years. The relief runs to 31 December 2029.

Proposed

The flat rate rises from 19% to 21% and the provision runs to 31 December 2029. The 20-year window and the exclusion of exemptions and deductions are unchanged.

Proposed

Relief is confined to SME workers, so the 50% and 30% for mid-sized companies go. The 90% and 50% for SMEs stay.

Proposed

A discount given to a retiree of the company or its affiliates on terms different from ordinary consumers is other income, taxed separately at 20% where it is KRW 3 million a year or less. The exempt ceiling is the greater of 20% of market value and KRW 2.4 million a year, and the purchase must be for the retiree's own consumption, barred from resale for a set period, and made under a common company rule. Whoever grants the discount files a payment statement by the end of February following the tax period.

Proposed

The follow-up test loosens: it applies where the relief has been claimed and exercise values total more than KRW 500 million across the year of exercise and the two preceding years. Immediate taxation where the shares are sold within a year of exercise is unchanged.

Proposed

The researcher qualification rises from a bachelor's to a doctorate and the two-year proviso for doctorate holders is deleted. The provision runs to 31 December 2029. The ten years of 50% relief is unchanged.

Proposed

In-house research institutes and R&D departments qualify only where the company claims the R&D tax credit for national strategic or new growth source technologies, or holds a national strategic technology under the National Strategic Technology Fostering Act, a strategic technology under the National Advanced Strategic Industry Act, or a national core technology under the Industrial Technology Protection Act. Universities, government-funded institutes and the Agency for Defense Development are unaffected.

Proposed

Where a company with a workplace in the capital region moves that workplace outside the region, or makes a new or expanded investment (replacement investment excepted) in a workplace outside it; and a worker who had been working in the capital region moves to that workplace within three years of the relocation or the completion of the investment; and the allowance is paid under a common company rule within three years of that move, a relocation allowance of up to KRW 200,000 a month, or KRW 500,000 in other preferred areas outside the capital region, is exempt.

Proposed

The expiry is not extended, so the deferral on reinvestment ends.

Proposed

The window narrows to liabilities arising up to 31 December 2026.

Proposed

The expiry is not extended, so the 9% separate taxation ends.

Proposed

It applies only to accounts opened by 31 December 2026, so the KRW 5 million interest exemption ends and is replaced by direct budget spending.

Proposed

It applies only to accounts opened by 31 December 2026, so the interest exemption ends and is replaced by direct budget spending.

Proposed

The acquisition test loosens from seven years to ten years after incorporation, and the expiry is deleted, making the exemption permanent.

Proposed

Investing directly in a venture business in a depopulating or at-risk area (at-risk areas of the capital region excepted) raises the credit to 7%, and the acquisition test loosens to ten years after incorporation. The 31 December 2028 expiry is unchanged.

Proposed

The acquisition test loosens from seven to ten years after incorporation, and the expiry is deleted, making the exemption permanent.

Proposed

Residents aged 19 or over and workers aged 15 or over may open one, and interest and dividends are exempt. Contributions are capped at KRW 20 million a year and KRW 200 million in total, invested in domestic listed shares, domestic equity funds, the National Growth Fund, BDCs and the like. A young holder aged 15 to 34 with gross salary of KRW 75 million or less (global income KRW 63 million or less) deducts 10% of contributions from income. Withdrawing more than the principal within three years is treated as closing the account and the exempted amounts are clawed back. The term is at least three years with no maximum, unused annual allowance carries forward, and there is no expiry date, the same as the current general ISA. A young holder may also hold a Youth Future Savings account. (Amended at the Cabinet meeting of 1 September 2026. The original proposal had a total term of ten years, no carry-forward, an expiry of 31 December 2029, and no holding alongside Youth Future Savings.)

Proposed

The productive-finance ISA is added and is likewise free of the rural special tax.

Proposed

The extra allowance becomes the lesser of 10% of the ISA rollover plus 10% of the productive-finance ISA rollover, and KRW 3 million. The basic KRW 6 million (KRW 9 million with IRP) is unchanged.

Proposed

The Cabinet meeting of 1 September 2026 kept everything as it is: term, carry-forward of unused allowance and the absence of an expiry date. (The original proposal was three years initially with a five-year total term, a flat KRW 20 million a year with no carry-forward, and an expiry of 31 December 2029.)

Proposed

An investor holding a BDC through a dedicated account is taxed separately at 9% on the dividends. Contributions are capped at KRW 100 million and the treatment applies to dividends through 31 December 2029. Anyone subject to global taxation of financial income at least once in the three preceding tax periods is excluded.

Proposed

Funds and REITs investing in overseas property are excluded. The three-year income window and the three-year holding test are deleted. Separate taxation applies automatically through a dedicated account opened with a securities firm. The KRW 50 million contribution cap stays, and the provision runs to income arising by 31 December 2029. The detail is left to Presidential Decree.

Proposed

Withdrawals remain taxable in principle, but the Bank of Korea is exempt from VAT when it withdraws.

Proposed

Cancelling treasury shares is taken out of deemed dividends, and where a company buys its own shares from a shareholder, the excess over acquisition cost in what the shareholder receives is a deemed dividend. Purchases through the exchange or an alternative trading system are excluded, except that off-hours block trades and basket trades are included.

Proposed

Deemed dividends from a company buying its own shares for purposes other than cancelling profit shares are added to those exclusions.

Proposed

Cancellation of treasury shares comes out of the resolution-date rule, and what a shareholder receives on a treasury share purchase is attributed to the day the company pays.

Proposed

Financial investment businesses operating other lines are added to those who must file, and the material widens to what is needed to assess income tax on both capital gains and dividends. Records of capital-reduction dividends of major shareholders of listed companies, and the trading records and capital-reduction dividends of major shareholders of small and mid-sized companies on the K-OTC market, are added.

Proposed

A company that started trading on or after 1 January 2025 uses its first business year as the baseline. The tests (a payout ratio of 40% or more last year, or 25% or more with dividends up 10% or more on the year before) are unchanged.

Proposed

Where someone who paid the exit tax returns to Korea more than five years after departure and sells the shares, the share value at the date the exit tax was paid is taken as acquisition cost. This does not apply where the exit tax was refunded or an adjustment credit was given on an actual sale, nor where the share value on the day of return is lower than the value at departure.

Proposed

ETFs and ETNs are added, leveraged and inverse ETFs and ETNs excepted. The precise products are set by Presidential Decree.

Proposed

The foreign financial account threshold widens to more than KRW 3 billion.

Proposed

It ends on 31 December 2027 without extension.

Proposed

It ends on 31 December 2027 without extension.

Proposed

Money rolled over from a matured productive-finance ISA is added.

Proposed

The scope and the exemption are unchanged; only the expiry moves to 31 December 2029.

Proposed

The exemption runs to 31 December 2029.

Proposed

The exemption runs to 31 December 2029.

Proposed

The exemption runs to 31 December 2028.

Proposed

The exemption runs to 31 December 2029.

Proposed

Integrated investment accounts (IMA) are added, making two: collective investment schemes and integrated investment accounts.

Proposed

A purchased rental apartment in an area subject to adjustment whose registration lapsed automatically at the end of the mandatory rental period is excluded only where sold by 31 December 2027. Where the mandatory period is still running as of 1 January 2027, or the area is newly designated, or reconstruction or redevelopment is under way, the window is one year from the latest of the end of the mandatory period, the date of designation and the date of the transfer notice.

Proposed

The expiry is not extended, so that treatment ends.

Proposed

The treatment ends and the compensation is brought into income. Compensation received by those already qualifying on or before 31 December 2026 keeps the old rule.

Proposed

The expiry is not extended, so both the credit and the workers' deduction end.

Proposed

The treatment ends. Mergers completed on or before 31 December 2026 keep the old rule.

Proposed

The expiry is not extended, so the relief ends.

Proposed

The credit ends and is replaced by direct budget spending.

Proposed

The expiry arrives on 31 December 2026, the 10% credit ends and it is replaced by direct budget spending.

Proposed

The 3% for free lending and the 1/3/7% for research facilities are brought forward to end on 31 December 2026. The 10% for mutual growth contributions, the 10% for donated used assets and the 10% and 5% for the trade insurance fund run to 31 December 2028.

Proposed

The credit is available where the core process is carried out in Korea, domestic spending makes up at least a set share of qualifying production costs, the goods are made with assets on which the integrated investment credit was not claimed, the place of supply is in Korea, and the goods are sold new in the tax year of production or the next. The provision runs to 31 December 2036.

Proposed

Goods in five fields that are important, promising and needed all at once qualify: solar power, wind power, secondary batteries, core semiconductor materials, and parts for AI robots. The particular goods are set by Presidential Decree.

Proposed

The base credit is multiplied by a regional factor: 1.0 in the capital region, 1.1 in metropolitan cities outside it and preferred areas of the capital region, 1.3 in other areas outside the capital region and preferred areas of those metropolitan cities, and 1.5 in other preferred areas outside the capital region. It then tapers to 75% in 2034, 50% in 2035 and 25% in 2036, and expires on 31 December 2036. The cap is the lesser of 50% of the year's qualifying production costs and 50% of cumulative investment in tangible business assets, less credits already taken through the previous year.

Proposed

Production in the capital overconcentration control region is excluded from the domestic production credit. The integrated investment credit is likewise unavailable there.

Proposed

The domestic production credit is added to the list that cannot be combined, alongside the integrated investment credit.

Proposed

The domestic production credit is added, so it may be carried forward for ten years and is subject to the minimum tax.

Proposed

An application must be filed with the district tax office with the year's tax return, and evidence of production costs and of production and sales volumes must be kept for ten years after the credit period ends and produced on request.

Proposed

A Korean who took the integrated investment credit on assets used directly to make qualifying goods on or before 31 December 2026 may cancel it by filing an amended return, provided the assessment period has not expired. The credit and interest are repaid, but the under-reporting and late-payment penalties are waived.

Proposed

The Minister may ask relevant agencies and the companies making and selling qualifying goods for breakdowns of production costs, selling prices and evidence of production and sales volumes, as needed to designate qualifying goods and compute the credit. Material bearing on economic security and trade secrets is not disclosed.

Proposed

It splits: KRW 10 million a year per electric or hydrogen vehicle and KRW 7 million for the rest. The KRW 4 million for small companies subject to compliance verification is unchanged.

Proposed

The hydrogen field is reorganised as future energy, with the particular technologies set by Presidential Decree.

Proposed

A petrochemical company restructuring to secure supply pays 10% on both, for up to two business years after the restructuring plan ends. The 31 December 2028 expiry is unchanged.

Proposed

Companies in special industrial crisis response areas and petrochemical companies are added to the five-and-five treatment, and the provision runs to 31 December 2029.

Proposed

A coastal freight credit is added: a shipper certified as an excellent shipper that signs a contract of three years or more with a coastal freight carrier credits 1% of the shipping costs paid, capped at 10% of its income or corporate tax. Where the certification is revoked or the contract terminated within three years of signing, the relieved tax is clawed back. The 31 December 2028 expiry is unchanged.

Proposed

After the five-year grace period following graduation (seven years for a listed company), a taper applies for three years at half the medium-enterprise rate: 7.5% instead of 15% for provincial manufacturing and the like, 2.5% instead of 5% for provincial wholesale, retail and medical practice, and 5% instead of 10% for general book publishing and the like. The 10-point bonus for long-standing compliant businesses is deleted. The KRW 100 million annual cap and the 31 December 2028 expiry are unchanged.

Proposed

After the five-year grace period following graduation (seven years for a listed company), a tapered rate of 12.5% applies for three years, to both the basic and the additional credit for video content and to the basic credit for webtoons. The 31 December 2028 expiry is unchanged.

Proposed

Tangible business assets connected with safety facilities, such as those preventing industrial accidents and fire, are added, and may likewise vary the standard useful life by up to 50%. The 31 December 2028 expiry is unchanged.

Proposed

Renters aged 15 to 34 also get 17%, the eligible rent ceiling rises to KRW 12 million a year, and the provision runs to 31 December 2029.

Proposed

The expiry is deleted, making the treatment permanent. Where a fisher contributes fishing land in kind to a fishing cooperative or fishery company, relief is replaced by deferral, and the follow-up becomes a clawback with interest where 50% or more of the shares or interest is disposed of within three years.

Proposed

The base rate is multiplied by a regional factor: 1.0 in the capital region, 1.1 in metropolitan cities outside it and preferred areas of the capital region, 1.3 in other areas outside the capital region and preferred areas of those metropolitan cities, and 1.5 in other preferred areas outside the capital region. The R&D credit rate is capped at 50%. Claiming the regional uplift requires separate accounts for each regional workplace.

Proposed

Regions are subdivided into four: the capital region; metropolitan cities outside it and preferred areas of the capital region; other areas outside the capital region and preferred areas of those metropolitan cities; and other preferred areas outside the capital region. General SMEs and incubators get 25% in the general capital region, then 50%, 60% and 70%. Venture, energy, new technology and jump-up businesses get 50%, 60%, 70% and 80%. Subsistence and youth businesses get 50% in the overconcentration area, 75% in the general capital region and 100% elsewhere. New industry businesses get 60%, 85% and 100%. The relief is unavailable where tax is assessed on an estimated basis, and the 31 December 2027 expiry is unchanged.

Proposed

Deferral of the gain on relocation and payment by instalments (arts. 60 and 61) are added to the exception on the trading-period test, and all relocation and special-zone reliefs are added to what estimated assessment bars.

Proposed

Setting up, in the capital region after relocating, a factory making the same products as the relocated one, or an office acting as head office, claws back the support and interest under arts. 60 and 61 as well as arts. 63 and 63-2, and bars future relief. Where headcount falls within two years of each relieved tax year after relocating or moving into a zone, the support and interest for the two years before the year of the fall are clawed back and future relief is barred. Articles 60, 61, 85-8, 104-24, 121-34 and 121-36 are added to the provisions covered.

Proposed

The cap is 70% of cumulative investment in tangible business assets in the region (50% in a special zone) plus the year's headcount × KRW 15 million (KRW 20 million for young workers, service and R&D talent under art. 12-2 only). Articles 104-24 and 121-36 are added to the provisions covered.

Proposed

From the tax year in which the relocation, move, start-up, new workplace or investment in tangible business assets begins, through the last tax year of the relief period (the detail set by Presidential Decree), the amount put back into the region must be at least 30% of the relieved tax, that is income or corporate tax relieved less the rural special tax. What counts is cumulative investment in the region, R&D spending at research institutes there, payroll of newly hired regular staff, and contributions to partner SMEs there. Falling short claws back the shortfall, and evidence of the amount returned must be filed with the return for the final year. (Amended at the Cabinet meeting of 1 September 2026. The original proposal counted only the relief period; it was widened to start from the tax year of investment made before relocating or moving in.)

Proposed

Relief for relocating a head office (art. 63-2), deferral and instalments on an SME factory move (art. 85-8), relief for companies returning from abroad (art. 104-24), deferral on moving into an opportunity development zone (art. 121-34) and relief in investment promotion districts of integrated metropolitan cities (art. 121-36) are added, extending the minimum tax to every relocation and special-zone relief. Periods of 100% relief are not subject to it.

Proposed

A business starting up or opening a workplace in an investment promotion district or cultural industry promotion district of Gwangju Metropolitan City is relieved of income or corporate tax by 100% for five years and 50% for the next two. Closing down or moving out of the zone claws the relief back. The provision runs to 31 December 2029.

Proposed

The reduction falls from 99% to 94%, the 5 points for fleet reduction go, and the provision runs to 31 December 2029.

Proposed

The preferential rate falls from 1.3% to 1.2% and its cap from KRW 10 million to KRW 5 million a year, and the provision runs to 31 December 2029. The basic 1.0% and KRW 5 million are unchanged.

Proposed

Large companies are excluded, leaving mid-sized companies and SMEs. For an ordinary worker in year one the credit is KRW 4 million at a mid-sized company and KRW 7 million at an SME in the capital region; for a preferred worker, KRW 5 million, KRW 7 million in the capital region and KRW 10 million in the provinces. The extra credit for parents returning from leave expires. The 31 December 2028 expiry is unchanged.

Proposed

The SME is exempt and the bank gets a 50% reduction, and the provision runs to 31 December 2029.

Proposed

The credit ends and the KRW 1,000 per notice is no longer available.

Proposed

Gains on disposing of treasury shares are added to the income exclusions, and losses to the deduction exclusions.

Proposed

Uneven purchases and disposals of treasury shares are added to both.

Proposed

The test becomes below 15%, the same level as the global minimum tax. The control, ownership and business activity tests are unchanged.

Proposed

An importer other than an Authorised Economic Operator may apply two months before the tax year ends (the approval lasts five years and is renewable in five-year terms) and files a verification prepared by a customs broker within three months of the year end. The benefits are fewer or no physical inspections, and where the verification leads to a correction, it is treated as made within the correction period, so penalties are reduced. Failing to file the verification draws a fine of up to KRW 5 million.

Proposed

The National Fire Service Hospital is added.

Proposed

Overstating business income by 10% or more through fraud or other wrongful acts is added as a clawback event.

Proposed

Where the ultimate parent sits in a country with a qualified domestic regime (a headline rate of 15% or more and a minimum tax at an effective rate of 15% or more), the undertaxed profits rule top-up tax of group entities in that country is treated as zero. It applies to business years beginning on or after 1 January 2026.

Proposed

The reduction in covered taxes caused by a qualified substance-based tax benefit is treated as not having happened when computing top-up tax and domestic top-up tax. The offsetting amount is the credit that reduced covered taxes, the excess deduction times the corporate rate, or exempt income times the corporate rate. The cap is 5.5% of the greater of qualified payroll and qualified tangible asset depreciation, or 1% of the book value of qualified tangible assets under a five-year election. It applies to business years beginning on or after 1 January 2026.

Proposed

A proviso is added: where the amount includes a current-year additional top-up tax or additional domestic top-up tax, that part is not treated as zero. The additional amount is what arises when a prior year's effective rate is recomputed. The detailed conditions are to be set by Presidential Decree.

Proposed

The exclusion becomes 100% where four conditions are met: the subsidiary and the sub-subsidiary sit in the same treaty country, the restructuring is exempt or deferred as a qualifying one under that country's law, the whole holding in the sub-subsidiary is received as a dividend in kind from a wholly controlled foreign subsidiary, and both companies have traded for five years or more.

Proposed

Shares received from restructuring a foreign subsidiary take 95% of market value. The dividend is fully excluded from income, and the lower cost defers tax by putting the remaining 5% into the gain when the shares are later sold.

Proposed

An amended return within two months of a general advance ruling is added.

Proposed

Industrial technology including national core technology under the Act on Prevention of Divulgence and Protection of Industrial Technology is added. For industrial technology, clearance is suspended on the head of customs' own authority only at the request of the Minister of Trade, Industry and Energy or the Director of the National Intelligence Service.

Proposed

Where no corporate tax return was filed by the deadline, the income or corporate tax from the related disposition of income also gets seven years.

Proposed

Carried-forward foreign tax credits under the Income Tax Act and Corporate Tax Act are added.

Proposed

Who qualifies and what services are covered are unchanged, but the expiry moves forward to 30 June 2027.

Proposed

The required field on both becomes the date of supply, and the optional field on a tax invoice becomes the date of issue.

Proposed

Goods for industrial technology R&D are removed; the other two remain.

Proposed

Where a largest shareholder aged 60 or over who has run the business continuously for 20 years or more transfers, above a set proportion, the shares or business assets of an SME whose main business is an industry eligible for the family business inheritance deduction, or of a mid-sized company with average turnover under KRW 500 billion over three years, capital gains tax is cut by 20%. The cap is the seller's years of management × KRW 50 million, applied separately from the general capital gains relief ceiling. The buyer must be an individual or company that has run a business in the same industry for ten years or more, or an officer or employee of five years or more at the business being passed on. Where the seller buys the assets back within five years, the relief and interest are clawed back.

Proposed

Where the buyer takes the business over from the seller, income or corporate tax on that workplace is cut by 10% for five years from the date of succession, capped at KRW 500 million a year. Tax below the minimum tax is outside the relief, and the succeeded business must be accounted for separately from the rest. Within five years of succession, a fall in the buyer's shareholding, disposal of 40% or more of the succeeded business assets, a fall of 10% or more in regular headcount and total payroll, suspension or closure for a year or more, or passing the business back to the seller, claws back the relief with interest.

Proposed

Income and corporate tax relief for a succeeding business is added to what cannot be combined, with a new proviso allowing it alongside the special SME relief.

Proposed

Income and corporate tax relief for a succeeding business is added to all three grounds.

Proposed

Capital gains relief on shares, interests or business assets transferred in a succession, and income and corporate tax relief for the succeeding business, are added to those free of the tax.

Proposed

It ends on 31 December 2028 without extension.

Proposed

Software development and supply is added to those sectors, but only for self-driving passenger cars given temporary running permission by the Minister of Land, Infrastructure and Transport for research purposes.

Proposed

For lending to productive sectors (start-ups, ventures and new technology companies, and loans linked to approved support from the advanced strategic industry fund), the ceiling becomes receivables × the greater of 1%, the actual ratio and 120% of the supervisory rate. Lending outside those sectors is unchanged.

Proposed

The scope and the 9/109 rate are unchanged; only the expiry moves to 31 December 2028.

Proposed

The scope and the relief are unchanged; only the expiry moves to 31 December 2029.

Proposed

The scope is unchanged and the expiry is deleted, making the exemption permanent.

Proposed

The scope is unchanged and the expiry is deleted, making the exemption permanent.

Proposed

The exemption is unchanged; only the expiry moves to 31 December 2029.

Proposed

The conditions and the treatment are unchanged; only the expiry moves to 31 December 2029.

Proposed

Both reliefs end.

Proposed

Low-priced and special-purpose tobacco are removed and become taxable. The other exemptions, such as unprocessed food, are unchanged.

Proposed

The R&D credit gains expiry dates by the year the technology was listed: 31 December 2027 for those listed up to 2017, 31 December 2028 for 2018 to 2020, 31 December 2029 for 2021, and for 2022 either 31 December 2030 for semiconductors or 31 December 2029 otherwise, and 31 December 2031 from 2023. The integrated investment credit gains an expiry of 31 December 2029 for new growth commercialisation facilities, and per-facility dates of 31 December 2027 up to 2017, 31 December 2028 for 2018 to 2020 and 31 December 2029 from 2021.

Proposed

The 31 December 2028 expiry is deleted and the deduction becomes permanent. The 90% distribution test, and the exclusion where the receiving shareholders are not taxed, are unchanged.

Proposed

The 31 December 2026 expiry is deleted, so the deduction and the 15-year rule continue with no end date.

Proposed

The expiry is deleted and the exemption continues with no end date.

Proposed

The expiry is deleted and the treatment continues with no end date.

Proposed

The expiry is deleted and the exemption continues with no end date.

Proposed

The same treatment runs to 31 December 2029.

Proposed

Both the treatment and the exemption run to 31 December 2029.

Proposed

The deduction runs to 31 December 2029.

Proposed

The 50% and 25% run to 31 December 2027.

Proposed

Deferral runs to 31 December 2028, and the instalment window becomes 1 January 2029 to 31 December 2031.

Proposed

The five-and-five treatment runs to 31 December 2029.

Proposed

The KRW 500 per person and KRW 2 million cap run to 31 December 2029.

Proposed

The 3% credit runs to 31 December 2029.

Proposed

Cancellation of existing holding company shares that became treasury shares in a qualifying merger is added as an exception: the compression reserve carries over to the subsidiary shares first contributed, and anything beyond the formula (shares disposed of before cancellation) is brought into income over five years.

Proposed

Qualified domestic minimum top-up tax (QDMTT), charged by the jurisdiction on income taxed below the 15% minimum rate, is added.

Proposed

The thresholds rise to KRW 300,000 for congratulatory and condolence money and KRW 50,000 otherwise.

Proposed

Movable property is added, making five.

Proposed

Where the Korean place of business issued the tax invoice, the service is treated as connected with it, which takes it out of the reverse charge.

Proposed

Where the split is a spin-off, or a split-off in which all the new company's shares are distributed to shareholders, and four conditions are met (the foreign company has traded for five years or more, the Korean company wholly controls it, it is established in a treaty country, and the split is exempt or deferred abroad), the shares carry over at their former book value and tax is deferred.

Proposed

Two more are added: those the Commissioner of the National Tax Service designates as handling or intermediating payment for goods and services through a first-tier payment gateway, and those designated as carrying on the activities listed in article 28(2) of the Electronic Financial Transactions Act.

Proposed

The expiry is deleted and zero-rating continues with no end date.

Proposed

Where no top-up tax or qualified domestic top-up tax arose for the group in that country in a business year beginning within the 24 months before the year starts, the effective rate may be computed from simplified income and simplified tax instead of global minimum tax income and adjusted covered taxes. Where the simplified rate is 15% or more, or simplified income is zero or less, the top-up tax and domestic top-up tax are treated as zero. It applies to business years beginning on or after 31 December 2026.

Proposed

It is widened to years beginning by 31 December 2025 and ending by 3 January 2027, so a group whose year is 52 or 53 weeks rather than a calendar year can use it.

Proposed

Filing data with a material omission or error is added.

Proposed

The same combined ceiling rises from KRW 500 million to KRW 1 billion.

Proposed

The credit widens to income tax already paid (capital gains tax or deemed dividend tax), so deemed dividend tax is credited too.

Proposed

Shares heading for a foreign listing are valued the same way as those heading for a domestic listing.

Proposed

Virtual asset service providers under the Virtual Asset User Protection Act are added.

Proposed

Virtual asset service providers under the Virtual Asset User Protection Act are added, making four.

Proposed

Becoming a full-time employee in work unrelated to the corporation's main decisions, on pay below a set amount, is added as an exception. The scope of that work and the pay ceiling are set by Presidential Decree.

Proposed

Where a non-profit running a testbed designated under the Special Act on Strengthening the Competitiveness of the Semiconductor Industry opens it to domestic materials, parts and equipment companies, has public officials, local-government nominees and public institution staff making up 50% or more of its board, signs an industrial technology infrastructure agreement with the Minister of Trade, Industry and Energy, and receives contributions or subsidies from the State or a local government, the property or benefit it receives is exempt from gift tax. Where the conditions fail, the exempted tax and interest are clawed back. The provision runs to 31 December 2031.

Proposed

Listed shares of a company presumed to have held its price down, traded between the largest shareholder and a related party, come out of the exclusion, and such a trade is a gift even where the denial of wrongful calculation does not apply. The threshold (the lesser of 30% of market value and KRW 300 million) is unchanged.

Proposed

Five types of business qualify: those holding patents, trade secrets, industrial technology, skilled techniques, or professional technical and managerial know-how of a comparable level. Businesses operating on technology or know-how supplied by others, such as franchises, and businesses whose main income is property, interest or dividend income, are excluded.

Proposed

The Act itself lists 727 industries at the most detailed level: 479 in manufacturing, 86 in wholesale and retail, 36 in information and communication, 27 in professional, scientific and technical services, 17 in construction and 16 in food service. Food service qualifies only where the food is made and cooked on the premises. Supermarkets, bus and taxi operations, car parks, warehousing, hospitals and pharmacies are among the main exclusions. Long-established small businesses recognised as centennial are joined by designated long-lived enterprises among those deemed to meet the industry test.

Proposed

A family business inheritance deduction review committee is established, chaired by the First Vice Minister of Economy and Finance with a majority of private members. It examines four matters: whether the business qualifies, whether a change of industry during the management or follow-up period is permitted, and whether the list of eligible industries should be adjusted. Where the taxpayer files review materials with the inheritance or gift tax return, the tax authority makes a preliminary examination and the tax is determined and notified according to the committee's decision.

Proposed

The predecessor's tests tighten to 30 years of continuous management and 30 years of continuous shareholding, and the representative director test becomes 15 of the 30 years counting back from the date of death. Where the business was run continuously for 20 years or more, the deduction may be taken on the 20-year basis, but the follow-up period is extended by the shortfall between 30 years and the period actually run. The heir must have worked in the business for five years or more before the date of death.

Proposed

The multiple falls to 2 times in the capital region, depopulating areas excepted, and 3 times elsewhere. A cap on the land deduction of KRW 10 million per ㎡ is also introduced.

Proposed

A change of industry is allowed only where the review committee finds it unavoidable, and it may then go outside the broad category. Where more than one line is run, the deduction is apportioned by turnover and similar measures between the eligible main line and the ineligible secondary line, and only the main-line share is deducted. A duty to keep separate accounts is introduced for that apportionment.

Proposed

The deduction is the predecessor's years of management multiplied by KRW 2 billion, capped at KRW 100 billion.

Proposed

The follow-up period becomes ten years. Where the predecessor ran the business continuously for 20 years or more and the deduction was taken on the 20-year basis, the period is extended further by the shortfall between 30 years and the period actually run. The clawback triggers are unchanged, and a change of industry approved by the review committee is not one of them.

Proposed

The obliged party moves from the investment partnership to those running it (the executive partner and the like), and financial investment businesses and those running investment partnerships are added to the 0.02% penalty (0.01% within a month).

Proposed

The definition of a business holding professional technical and managerial know-how is introduced, and the eligible industries become the 727 detailed ones (479 in manufacturing, 86 in wholesale and retail, 36 in information and communication and so on). The predecessor must have run the business for 30 years or more, or 20 years or more where it was run continuously for 20 years, and the heir for five years or more. The land multiple falls to 2 times in the capital region, depopulating areas excepted, and 3 times elsewhere, with a new cap of KRW 10 million per ㎡. A change of industry may go outside the broad category where the review committee finds it unavoidable.

Proposed

The definition of a business holding professional technical and managerial know-how is introduced, the eligible industries become the 727 detailed ones, and the review committee examines the claim. The parent's test tightens to 20 years or more of continuous management; the recipient's tests are unchanged. The land multiple falls to 2 times in the capital region, depopulating areas excepted, and 3 times elsewhere, with a new cap of KRW 10 million per ㎡. A change of industry may go outside the broad category where the committee finds it unavoidable.

Proposed

The definition of a business holding professional technical and managerial know-how is introduced, the eligible industries become the 727 detailed ones, and the review committee examines the claim. The parent's test tightens to 20 years or more of continuous management. The land multiple falls to 2 times in the capital region, depopulating areas excepted, and 3 times elsewhere, with a new cap of KRW 10 million per ㎡. Where more than one line of business is run, the relief is apportioned by turnover and similar measures.

Proposed

Where the price-to-book ratio falls in the bottom 25% of the sector on the KOSPI or the bottom 10% on the KOSDAQ, or where acts capable of depressing the price (such as a duplicate listing or an issue of exchangeable bonds) occurred within the year, and the current market valuation is 30% or more below the highest of the 6-month, 1-year, 2-year and 3-year averages, the price is presumed to have been held down. After review by the valuation committee, the shares are valued at the greatest of 1.3 times the two-month average around the valuation date and the averages over 6 months, 1, 2, 3, 4, 5, 6 and 6.5 years.

Proposed

The Korea-US Strategic Investment Fund under the Korea-US Strategic Investment Act is added to the exempt bodies.

Proposed

The expiry is not extended, so the KRW 700,000 relief ends.

Proposed

The expiry is not extended, so stamp duty applies to those documents.

Proposed

The expiry arrives on 31 December 2026 and the exemption on those services ends.

Proposed

The expiry arrives on 31 December 2026, the exemption ends and it is replaced by direct budget spending.

Proposed

The expiry arrives on 31 December 2026, the KRW 56 relief ends and it is replaced by direct budget spending.

Proposed

The expiry arrives on 31 December 2026, the five exemptions end and they are replaced by direct budget spending.

Proposed

The expiry arrives on 31 December 2026, the exemptions end and they are replaced by direct budget spending.

Proposed

The expiry is brought forward from 31 December 2028 to 31 December 2026, the exemption ends and it is replaced by direct budget spending.

Proposed

The expiry arrives on 31 December 2026, the exemption ends and it is replaced by direct budget spending.

Proposed

The expiry arrives on 31 December 2026, zero-rating ends and it is replaced by direct budget spending. The transitional cover for projects already under way was widened: private projects that completed feasibility analysis or proposal review by 31 December 2026, and publicly funded projects whose master plan was announced by 31 December 2026 and whose project or implementation plan is approved by 31 December 2027, keep zero-rating until completion. (Amended at the Cabinet meeting of 1 September 2026. The original proposal covered private projects only up to a signed implementation agreement, and publicly funded projects up to plan approval.)

Proposed

For goods under concentrated tariff-quota management the window falls from 30 to 20 days and the cap rises from KRW 5 million to KRW 10 million.

Proposed

A request by the competent Minister to release goods under concentrated tariff-quota management, so that supply runs smoothly, is added as a ground, and cargo owners are added to those under the duty.

Proposed

The existing KRW 1 million fine stays, and a new fine of up to KRW 5 million is created for ignoring a supply-management removal order.

Proposed

Dormitories built and run by the Korea Student Aid Foundation are added, and the expiry is deleted, making the exemption permanent.

Proposed

The cap falls in stages (electric cars to KRW 2 million in 2027 and KRW 1 million in 2028, hydrogen cars to KRW 3 million and KRW 1.5 million) and ends on 31 December 2028.

Proposed

All the caps go, and the rates become 30% on KRW 30 million to KRW 500 million, 20% on KRW 500 million to KRW 2 billion and 10% above KRW 2 billion. The 5% band above KRW 3 billion is deleted.

Proposed

The KRW 1 billion cap is deleted and the rates become 30% on KRW 10 million to KRW 500 million, 20% to KRW 2 billion and 10% above that; the 5% band above KRW 3 billion is deleted. Offences over which customs has delegated investigative powers under the Act on Judicial Police Duties, such as drug offences, are added to what may be rewarded.

Proposed

Breaches of the duty to file foreign trust particulars are added. The 15% on KRW 20 million to KRW 200 million stays, and everything above KRW 200 million pays 10% with no further banding. The 5% band above KRW 500 million is deleted.

Proposed

The cap rises to KRW 1 billion. Trust property already fined for breach of the foreign financial account reporting duty is excluded, so the same property is not fined twice.

Proposed

Keeping a senior claim in place in order to avoid paying national tax is added as a ground for maintaining the seizure. The National Tax Arrears Committee decides, weighing when and why the senior claim was created, the flow of funds and the benefit derived from the seized property.

Proposed

A new band for filing within a week cuts it by 75%. One week to one month stays at 50%, one to three months at 30% and three to six months at 20%.

Proposed

The reduction for the same delay rises to 75%.

Proposed

A defaulter who pays 50% or more of the arrears by the day before the Committee meets is excluded from the application.

Proposed

The exemption is deleted and those allowances are taxed.

Proposed

Goods that cannot readily be made in Korea, imported by the organising committee of the 2027 Chungcheong Summer World University Games or by a local government to build competition facilities or run the Games, are exempt from VAT. The provision runs to 31 December 2027.

Proposed

Documents drawn up by the organising committee of the 2027 Chungcheong Summer World University Games are exempt from stamp duty. The provision runs to 31 December 2027.

Proposed

Goods imported by the organising committee of the 2027 Chungcheong Summer World University Games and others to build facilities or run the Games attract 50% customs relief.