Taxes on investing in South Korea (2026)
Korea treats domestic and overseas shares very differently.
| Korean listed shares | Overseas shares (e.g. US stocks) | |
|---|---|---|
| Capital gains (small shareholders) | Generally not taxed | 22% (20% national + 2% local) on yearly net gains |
| Annual deduction | – | ₩2.5 million per year, combined across overseas shares |
| Tax on selling | Securities transaction tax 0.20% on KOSPI and KOSDAQ from 2026 (plus a 0.15% special tax on KOSPI trades) | Broker fees only |
| How you pay | Withheld automatically at sale | You file and pay yourself in May of the following year |
- Large shareholders of Korean companies (above thresholds set by law) do pay capital gains tax on domestic shares. Most retail investors are well below these thresholds.
- Dividends from Korean companies are generally withheld at 15.4% (14% plus local tax). If your total financial income (interest plus dividends) goes above ₩20 million in a year, it is added to your other income and taxed at progressive rates.
- US dividends have US tax withheld at source; how much extra you owe in Korea depends on the Korea–US treaty and your total financial income. Ask your broker for the year-end statement.
Filing overseas gains
Overseas gains for a year are reported between 1 and 31 May of the following year, usually through the National Tax Service’s Hometax site. Many Korean brokers offer a free filing service for overseas stock gains; it’s worth using.
Tax-advantaged accounts
- ISA (개인종합자산관리계좌): lets you hold funds, ETFs and deposits with a tax-free allowance on income and lower tax above it. Limits and conditions are set by law and have been changing; check the current rules with your broker.
- Pension savings and IRP accounts offer tax credits on contributions for long-term retirement investing.
Local tips
- Korea has one of the world’s most active retail investor communities, and overseas ETFs listed in Korea (tracking the S&P 500 or Nasdaq) are popular. They are taxed like Korean funds, not like overseas shares, which can change the maths.
- Use the ₩2.5 million overseas deduction every year: some investors sell and re-buy before year-end to “use up” the allowance.
- Korean brokers convert won to dollars for US trades. Compare FX spreads, which can matter more than commissions.
This is general information, not tax advice. Check your situation with the National Tax Service or a tax professional.
Sources
Brokers you can use from South Korea
Researched October 2026. Listed for information, not as a recommendation. Fees change often, so compare them on each broker's official pricing page.
Local brokers
International platforms
- Real shares & ETFsYes
- CFDsYes
- Regulated bySEC / FINRA (US), FCA (UK), Central Bank of Ireland (EU) +5
- Real shares & ETFsYes
- CFDsYes
- Regulated byCySEC (EU), FCA (UK), ASIC (AU) +2
- Real shares & ETFsYes
- CFDsNo
- Regulated bySEC / FINRA (US), CFTC / NFA (US), SIPC member
About CFDs: some platforms above also offer CFDs. These are leveraged products and most retail CFD accounts lose money. For long-term investing, make sure you are buying the real shares or ETF units.
Your three routes
Buying US and global stocks
Check whether your broker gives direct access to US exchanges, holds shares in your own name, and how it handles US dividend withholding tax for residents of South Korea.
The costs that matter
See how fees change the end result with the compound interest calculator.
Who protects you
The FSC / FSS (Financial Services Commission / Financial Supervisory Service) supervises investment firms in South Korea. Before opening an account, find the broker in the official register, or confirm its licence lets it serve residents of South Korea. No clear regulator is a red flag.