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.
When a Korean SPAC liquidates, holders get about 2,000 won per share plus modest interest. In 2025 the average first-day intraday high was 4,067 won. Here is the loss math by entry price.
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.
In a technology licensing deal, only the upfront payment is certain at signing. Korean biotech deals have averaged upfronts of 0.48-5.8% of headline value, while overseas deals range from 1.6% to 82%.
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.
In a Korean injeok bunhal (spin-off), shareholders receive new-company shares pro rata; in a muljeok bunhal (split-off), the parent takes 100%. Since December 31, 2024, treasury shares can no longer receive new shares in a spin-off.
Borrow 30 million won for 45 days and the retroactive method charges 318,082 won while the tiered method charges 292,356 won. Where the 25,726 won gap comes from, and what price drop reaches the 140% maintenance line.