Capital gains tax in South Korea 2026

Gains on Korea Exchange shares are exempt unless you are a 'large shareholder' — holding 1%+ of a company (2% on the growth market (KOSDAQ)) or at least KRW 5 billion in one company — in which case 20% applies up to KRW 300 million of gains and 25% beyond (30% if held under a year).

Real estate is the political battleground: ordinary rates apply after 2 years, but sales within 1 year bear 50% (40% for houses), with extra burdens for multi-home owners and a long-ownership deduction of 6–30% after 3 years.

At a glance

top rate: 50% (real estate held under 1 year)
entry band: KRW 2.5 million basic deduction on transfer income
tax year basis: Calendar year ('transfer income' computed separately)
filing deadline: May return; preliminary returns follow disposals
residency basis: Residents: worldwide gains; exit tax on emigrating large shareholders
regime flag: One-house owners: full or partial exemption by value

Rates

Capital gains treatment (2026)

Rate	Base	Applies to
0%	—	Listed shares of minority holders (under 1%/2% and KRW 5 billion)
20% / 25%	Gain up to / above KRW 300 million	Large shareholders' listed shares and unlisted shares (10% for small-company controlling stakes)
30%	Gain	Large-corporation controlling shares held under 1 year
6% – 45% scale	Gain less long-ownership deduction	Real estate held 2+ years
50% / 40%	Gain	Real estate held under 1 year / 1–2 years (houses: 40% under 1 year)

Thresholds & allowances

Basic deductionKRW 2.5 million
Annual, against transfer income after other deductions
Long-ownership deduction6% – 30%
For real estate held 3+ years; enhanced for owner-occupied homes
One-house exemptionFull or partial
Selling your only home is exempt up to value limits
Loss reliefSame-group offset only
Real-property losses against real-property gains, securities against securities; no carryforward

Residency

Residency trigger

Transfer income is computed separately from global income at the same nominal scale for property — the interlocking exceptions for multi-home owners change with each administration, so current-year checking is essential.

Non-resident treatment

Buyers withhold the lower of 10% of proceeds or 20% of gains when non-residents sell Korean securities or property (individual purchasers of real estate excepted); treaty exemptions require certificates filed in advance.

Notes

The threshold cut to KRW 1 billion planned for 2026 was abandoned in September 2025 — KRW 5 billion stands.
The abolished financial-investment-income tax would have taxed all share gains at 20/25% — its repeal preserved the minority exemption.
Exit tax: emigrants resident 5 of the past 10 years with 4%+ stakes or KRW 300 million of shares are deemed to sell at departure (20/25%).
Comprehensive real estate holding tax (0.5–5%) burdens multi-home ownership annually, separate from gains tax.

FAQ

Do stock investors pay capital gains tax in South Korea?

Minority investors in listed shares pay 0%; only large shareholders — 1%+ of a company (2% KOSDAQ) or KRW 5 billion+ held — pay 20% up to KRW 300 million of gains and 25% above (30% for under-a-year holds).

How is property taxed on sale?

At the 6–45% scale after a 6–30% long-ownership deduction — but 50% flat if sold within a year (40% for houses), with multi-home owners taxed more heavily and one-home sellers largely exempt.

Figures: tax year 2026, compiled from public sources. Not tax advice.

See capital gains tax in other countries

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