Korea's Overseas Stock Tax: The 2.5m Won Deduction and FX
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.
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How ISA Loss Offsetting Works: A 4x Tax Gap vs. a Regular Account
A Korean ISA taxes only the net gain after summing every gain and loss inside the account — 2 million won tax-free, 9.9% above that. Run the same trades through a regular brokerage account and the losses vanish from the calculation.
Korea's National Growth Fund: Deduction Stops at 70 Million Won
The income deduction on Korea's citizen-participation National Growth Fund is tiered by investment amount — 40%, 20%, then 10% — so it maxes out at 18 million won once you contribute 70 million. Everything above that buys only the 9.9% dividend tax rate.
Low-Coupon Bond Tax Math: Same 3.5% Yield, 0.37pp Apart After Tax
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.
Korean REIT Dividend Tax: 9% on 50 Million Won for 3 Years
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.
Korea-Listed vs US-Listed ETF Tax: The 8.33 Million Won Line
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.
Korean Overseas Stock Capital Gains Tax: The 2.5M Won Rule
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.
Hometown Love Donation: 44% Credit and a 207,000-Won Break-Even
Korea's hometown love donation (gohyang sarang gibu) credits 100% of the first 100,000 won and 44% of the next 100,000. Add the 30% gift cap and the break-even sits near 207,000 won.
Productive-Finance ISA vs Regular ISA: The Dividend Tax Math
Korea's proposed Productive-Finance ISA exempts all interest and dividend income from domestic stocks and funds. 20 million won a year, up to 10 years, starting 2027. On 15 million won of dividends over three years, the tax gap runs from 2.31 million won to zero.
Korea's 20M Won Tax Line vs the 10M Won Health Premium Trigger
Only financial income above 20 million won gets rolled into comprehensive taxation, but health insurance starts counting at 10 million won. A 1-million-won difference can create 480,000 won a year in premiums.