Korean Tax Blog

Do Foreign Workers Get Severance Pay in Korea? “I am a foreign worker in Korea. Can I receive severance pay when I leave my job?” Yes. Foreign workers may also be entitled to severance pay in Korea if they meet the legal requirements. Being a foreign national does not by itself exclude you from Korea’s severance pay protections. Who Can Receive Severance Pay? In general, severance pay may apply when an employee: Has worked continuously for at least one year Has an average sch

Do Foreigners Have to Pay Inheritance Tax in Korea? “I inherited property or money connected to Korea. Do I have to pay inheritance tax?” Foreigners can also become involved in Korean inheritance tax when they inherit money, real estate, stocks, or other assets connected to Korea. Whether Korean inheritance tax applies is not determined simply by nationality. The deceased person’s tax residency and the location of the inherited property are important factors. When Can Korean

Do Foreigners Have to Pay Gift Tax in Korea? “My family sent me money from overseas. Do I have to pay gift tax in Korea?” If you are a foreigner living in Korea, money or property received from family members may, in some cases, be subject to Korean gift tax. Being a foreigner does not automatically exempt you from gift tax. Whether tax applies can depend on factors such as your residency status, the type of property received, and your relationship with the person giving the

Can Foreign Employees Get Tax Benefits for Rent and Mortgage Interest in Korea? “I work in Korea and pay rent or mortgage interest. Can I get a tax benefit?” If you are a foreign employee working in Korea, you may be eligible for certain housing-related tax benefits when filing your year-end tax settlement. Two important benefits are monthly rent tax credits and mortgage interest income deductions. Monthly Rent Tax Credit Foreign employees who meet the requirements may be eli

Annual Paid Leave in Korea: What Foreign Workers Should Know “I work in Korea. How many paid vacation days am I entitled to?” If you are a foreign employee working in Korea, you may be entitled to annual paid leave under Korean labor law. Knowing how annual leave works can help you understand your rights as an employee. How Many Annual Leave Days Can You Get? Generally, an employee who has worked for one year and has an attendance rate of at least 80% is entitled to 15 days o

What Is Weekly Holiday Allowance in Korea? “I work in Korea. Am I entitled to paid weekly holiday allowance?” If you work in Korea, you may be entitled to weekly holiday allowance (주휴수당) in addition to your regular wages. Understanding this rule is especially important for foreign workers, part-time employees, and hourly workers. What Is Weekly Holiday Allowance? Under Korea’s Labor Standards Act, eligible employees are entitled to at least one paid weekly holiday per week wh

2027 Minimum Wage in Korea: Hourly and Monthly Rates “How much will the minimum wage be in Korea in 2027?” If you are a foreigner working in Korea, it is important to know the minimum wage that will apply from January 2027. The 2027 Korean minimum wage has been officially set at 10,700 KRW per hour. What Is the 2027 Minimum Wage? Starting January 1, 2027, Korea's minimum wage will be: Hourly: KRW 10,700 Daily: KRW 85,600 (8 hours) Monthly: KRW 2,236,300 The monthly amount is

What Tax Documents Should Foreigners Keep Before the End of the Year? “Tax season is still months away. Do I need to prepare anything now?” If you are a foreign employee working in Korea, it is a good idea to start keeping track of your tax-related documents before the year ends. Preparing your documents in advance can make the Korean year-end tax settlement process easier and help you avoid missing important deductions or tax credits. What Documents Should You Keep? Dependin

What Business Expenses Can Foreigners Deduct in Korea? “I run a business in Korea. Which expenses can I deduct from my business income?” For foreign business owners, understanding deductible business expenses can be an important part of managing Korean taxes. In general, expenses that are directly related to earning business income may be recognized as necessary business expenses when calculating taxable income. What Are Deductible Business Expenses? For an individual busines

How Do Foreigners File Income Tax in Korea as a Business Owner? “I’m a foreigner running a business in Korea. How do I file and pay income tax?” If you operate a business in Korea as an individual business owner, you may have to file a Global Income Tax Return (종합소득세 신고) in Korea. Being a foreigner does not automatically exempt you from Korean income tax. When Do Foreign Business Owners File Income Tax? Korea generally requires individuals with business income to file their a