Korea stock tax in 4 lines

Make money on stocks and you start worrying about taxes. It sounds complicated, but for a beginner there are really just four things to know. Today, let's lay out exactly those four.

① Capital gains on Korean stocks

Gains from buying and selling Korean stocks are tax-free for ordinary investors. Whether you make 100 million won or any amount, a normal individual who isn't a major shareholder pays no tax on trading gains.

② Transaction tax on Korean stocks

Instead, a very small transaction tax applies every time you sell — currently about 0.18%. Sell 1 million won worth and it's about 1,800 won. Nothing on the buy side; it's deducted automatically only when you sell.

③ Capital gains on foreign stocks

Foreign stocks like U.S. ones are different. Of your net gains over a year, the first 2.5 million won is deducted, and the excess is taxed at 22% (capital gains tax). If your yearly gain is 5 million won, you pay 22% on the 2.5 million left after the deduction.

This tax isn't withheld automatically — you must file it yourself the following May (capital gains return). Forget, and penalties pile on, so don't miss it.

④ Dividend income tax

Dividends a company pays out are taxed at 15.4%, both domestic and foreign. It's usually withheld automatically when the dividend arrives, so there's rarely separate filing. But if dividends are very large (over 20 million won a year), they can be combined with other income and taxed further.

Remember just this as a beginner

At first it's enough to know the big picture: 'domestic taxes are simple, and for foreign stocks you must file once gains exceed 2.5 million won.' Handle the details when the amounts grow.