Korean Capital Gains Tax on Stocks and ETFs
Korean investors face different tax rules depending on the type of security they trade. This calculator covers the four main taxable scenarios: overseas stocks, overseas ETFs, domestic ETFs, and domestic stocks held by large shareholders.
Tax Rates by Asset Type
Overseas stocks & ETFs: 22% (20% income tax + 2% local tax) after a KRW 2,500,000 annual basic deduction. Domestic index ETFs: 15.4% withheld at source as dividend income on capital gains. Domestic large shareholder: 20% on gains up to KRW 300M, 25% above that.
Annual Basic Deduction for Overseas Assets
The KRW 2,500,000 basic deduction applies to the total net gains across all overseas stocks and ETFs for the calendar year. Losses from some positions can offset gains from others before the deduction is applied.
When to File Taxes
Overseas stock capital gains must be reported and paid annually each May during the comprehensive income tax filing period. Domestic ETF gains are typically withheld automatically. Consult a tax professional for complex cases involving multiple accounts or currencies.
Frequently Asked Questions
When must I report overseas stock gains?
Every May, during the annual comprehensive income tax period. Aggregate all your overseas stock and ETF transactions from the prior year, calculate net gains, apply the ₩2.5M deduction, and file with the NTS.
Can I offset gains with losses?
Yes. Within the same calendar year, losses from overseas stocks can offset gains from other overseas stocks, reducing your taxable net gain. The ₩2.5M deduction is then applied to the net figure.