Taxes & Finance — Come to Korea

Korean tax for foreigners is more navigable than it looks: your employer handles most of it through a yearly settlement, and there's a special flat-tax option for higher earners. Here's what to know — and where to file.

Are you a tax resident?

Korea uses a 183-day rule: if you have a "domicile or residence" in Korea for 183 days or more in a tax year, you're a tax resident. Residents are taxed on worldwide income; non-residents are only taxed on Korean-source income. Most long-term foreign workers, students, and spouses are residents from day one of their work or study.

Two ways to be taxed

Progressive tax (default)

This is what 95% of foreigners pay. Brackets are the same as for Korean nationals:

Up to ₩14M — 6%
₩14M–₩50M — 15%
₩50M–₩88M — 24%
₩88M–₩150M — 35%
₩150M–₩300M — 38%
₩300M–₩500M — 40%
₩500M–₩1B — 42%
Over ₩1B — 45%

Plus a local income tax (10% of the national tax owed). You also get the full range of personal, dependent, medical, education, credit-card, and housing deductions that Koreans get.

19% flat tax (optional, for foreign workers)

Foreign workers can elect a flat 19% rate on Korean earned income — but you forfeit every deduction and credit. This is usually only worth it at higher salaries (rough breakeven is around ₩88M/year). The election is for your first 20 years of working in Korea and is made annually by your employer at year-end settlement.

Year-end settlement (연말정산)

Most foreign workers don't file a separate annual return — your employer reconciles your taxes in February for the prior calendar year. Your job is to provide deduction receipts:

In mid-January, log in to Hometax and use the "Year-end Tax Settlement Simplified Service" (연말정산간소화) — it auto-pulls your credit-card spend, medical bills, donations, and more.
Submit the bundle of deductions to your employer, usually via your company's HR portal.
Refund (or extra payment) appears in your February or March paycheck.

If you have non-employment income (freelance, rental, foreign), you file a separate Global Income Tax Return in May.

Freelancers & remote workers

Working for a foreign client while sitting in Korea? If you're a resident, that income is still taxable here. You file a global income return in May via Hometax. Korea has tax treaties with most major countries to avoid double taxation — keep proof of any foreign tax paid. For English-language help, call the NTS Foreign Taxpayer Helpline (1588-0560).

Leaving Korea — pension lump-sum refund

Foreign workers who paid into the National Pension Service (NPS) can often reclaim every won on departure, provided their country has reciprocity with Korea (US, Canada, Australia, most EU members, etc.). Apply via the National Pension Service English site before you leave, or have a friend file on your behalf afterward.