Korean Tax Blog

Do Foreign Employees Have to Pay Tax on Side Jobs or Freelance Income in Korea? “I have a full-time job in Korea, but I also earn money from freelance work. Do I need to pay additional tax?” Possibly. If you are a foreign employee working in Korea and earn additional income from freelancing, consulting, teaching, content creation, or another side job, that income may have separate Korean tax implications. Completing your company’s year-end tax settlement does not always mean

Can Foreign Employees Claim Tax Deductions for Family Members Living Overseas? “My spouse, parents, or children live outside Korea. Can I still claim them during my Korean year-end tax settlement?” In some cases, yes. Foreign employees who are Korean tax residents may be able to claim certain deductions for qualifying family members even when those family members live overseas. Living outside Korea does not automatically prevent a family member from qualifying for a deduction

Can Foreigners Get Their Korean National Pension Back When Leaving Korea? “I paid into Korea’s National Pension while working here. Can I get that money back when I leave Korea?” For some foreign workers, the answer is yes. Foreigners who have contributed to Korea’s National Pension may be eligible to receive a Lump-sum Refund when leaving Korea, but eligibility is not the same for everyone. It can depend on factors such as nationality, international social security agreement

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

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

Korean Year-End Tax Settlement: What Foreign Employees Should Know If you work for a company in Korea, you may have heard the term “Year-End Tax Settlement” (연말정산). But what exactly is it, and do foreign employees have to do it? What Is Year-End Tax Settlement? Year-end tax settlement is the process of calculating your final income tax for the year based on your salary, deductions, and tax credits. Your employer withholds income tax from your monthly salary throughout the yea