Once interest and dividends exceed 20 million won a year, the excess is taxed at progressive rates. But a comparative-taxation rule keeps the effective rate at 14% up to roughly 81 million won for people with no other income. Health insurance moves first.
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A bond ETF with a duration of 17 years loses roughly 17% when rates rise 1%p. Korea's 30-year government bond yield rose 1.459%p this year — and the ETFs tracking it fell 25.39% on average. Here is the arithmetic behind that.
Korea taxes overseas stock gains above 2.5 million won at 22%. Because the base is won-converted at settlement-date rates, an account down 5% in dollars can still owe 1.9 million won.
Interpreting foreign net-buying data requires knowing which industry events captured global capital. In July, three themes hit the Korean market at once: defense orders, HBM competition, and energy supply-chain instability. This piece examines each and the conditions that break the framework.
US dividends lose 15% at source and nothing more in Korea — lighter than the 15.4% on Korean dividends. The real split comes at 20 million won of annual financial income.
Beyond inflation stickiness, the Fed's repeated delays reflect geopolitical energy risk, labor resilience, and institutional conservatism. A July hold is most likely; the real variables are a few leading indicators, not the dot plot.