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Dividend tax in South Korea 2026
Interest and dividends up to KRW 20 million a year are done at the 14% withholding (15.4% with local tax); beyond that, the excess is pulled into the 6–45% global scale with a 10% imputation credit.
From 2026, dividends from listed companies that maintain high payout ratios can instead be finally withheld at 14–30% progressive rates — a deliberate reward for dividend-paying corporates.
At a glance
- top rate
- 49.5% marginal (large financial income); 30% under the new separate regime
- entry band
- 14% (+1.4% local) withholding up to KRW 20 million
- tax year basis
- Calendar year
- filing deadline
- May return only when financial income exceeds KRW 20 million
- residency basis
- Residents: worldwide; newcomer remittance basis can defer foreign dividends
- regime flag
- Imputation credit 10% of declared dividends (11% from 2027)
Rates
How dividends and interest are taxed (2026)
| Rate | Base | Applies to |
|---|---|---|
| 14% (+1.4% local) | Gross | Interest and dividends while combined financial income stays under KRW 20 million — final |
| 6% – 45% scale + credit | Gross, with 10% gross-up credit | Financial income above KRW 20 million — declared as global income |
| 14% / 20% / 25% / 30% | Brackets: 20m / 300m / 5,000m | New 2026 separate taxation for qualifying high-payout listed companies — final |
| 20% | Gross | Interest on private (non-commercial) loans |
Thresholds & allowances
- Financial-income thresholdKRW 20 million
The comprehensive-taxation trigger for combined interest and dividends
Residency
Residency trigger
Payers withhold at source; only when the KRW 20 million line is crossed (or the new separate regime applies) does anything change at filing.
Non-resident treatment
Non-residents bear 20% withholding on dividends and 14% on most interest (20% on private loans), plus the 10% local surtax — treaty relief needs applications before payment, with omnibus-account flows withheld first and refunded later.
Notes
- The much-debated 'financial investment income tax' was abolished at end-2024 without ever applying — the selective system continues.
- The imputation credit (10% of declared dividends, 11% from 2027) tracks the lowest corporate rate.
- Savings-promotion accounts under the special-taxation law carry their own interest and dividend exemptions.
FAQ
How are dividends taxed in South Korea?
At a final 14% (15.4% with local tax) while your total financial income stays under KRW 20 million a year; above that, the excess joins the 6–45% scale with a 10% imputation credit — or, from 2026, qualifying listed payers' dividends settle separately at 14–30%.
What is the new 2026 dividend regime?
Dividends from listed companies with high payout ratios can be finally withheld at progressive 14/20/25/30% rates (brackets at KRW 20 million, 300 million and 5 billion) instead of joining global income — designed to encourage distributions.
Figures: tax year 2026, compiled from public sources. Not tax advice.