Premium/discount measures the gap between market price and NAV; tracking error measures the gap between NAV and the index. From 19 August 2026, Korea tightened the LP limit on domestic ETFs from 3% to 2%.
In Korea, individual bonds are taxed only on coupon interest at 15.4%, while capital gains go untaxed. Two bonds with identical 3.5% pre-tax yields end up 0.37 percentage points apart after tax over three years. Here is the calculation, step by step.
On the same 100 million won severance payout, the tax is 14.5 million won after three years of service but only 240,000 won after thirty. The service-year divisor is what splits them.
A 120% refund rate at year 10 on a 7-year-pay whole life policy works out to 2.84% compounded annually. Using 300,000 won a month over 84 months, here is the payout, the effective annual rate, and how the 78.6% paid-up figure fits in.
Dividends from public Korean REITs can be taxed at 9.9% instead of 15.4%. The cap applies to 50 million won of principal, only dividends paid within three years qualify, and you must file with your broker — no retroactive relief.
Retail IPO shares in Korea split roughly half into equal allocation and half into proportional allocation. Headcount decides one, deposit size decides the other. Worked calculations at a 20,000 won offer price and 1,000-to-1 ratio.
Korea-listed foreign ETFs pay a 15.4% dividend tax on trading gains; US-listed ETFs pay 22% capital gains tax. Once the 2.5 million won deduction and loss offsetting enter the math, the advantage flips at 8.33 million won of annual gains.
Korea taxes overseas stock gains at 22% after an annual deduction of 2.5 million won. A 10 million won gain costs 1.65 million won — an effective rate of 16.5%. The settlement date, not the trade date, decides the tax year.
Korea's individual investor treasury bonds pay their premium, compounding and tax carve-out only at maturity. Using February's rates, here is what 10 million won returns after tax across 5-, 10- and 20-year tranches.
All three ISA types in Korea share the same tax break. What differs is who controls the portfolio — and the annual fee you pay for handing that control over. Here is what 0.10% and 0.50% cost over five years.