한국어

Korea Capital Gains Tax Calculator

What Korea takes when you sell shares, once the 2.5 million won annual exemption is applied.

Work out your capital gains tax

Enter what you sold for and what you paid. Rough figures are enough.

Where the shares are listed
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How the tax is worked out

Capital gains tax (overseas shares)Tax=(Capital gain−2.5 million won)×22%
The 2.5 million won exemption applies once a year across both markets. Losses in the same year are netted off.
What you soldRateNotes
Overseas shares22%20% income tax + 2% local income tax
Korean listed, small shareholderNo taxWhen sold on the exchange
Korean major shareholder or unlisted22% to 27.5%20% or 25% above a 300 million taxable amount, plus local tax
Korean major shareholder, under a year33%Outside small and medium companies (30% plus local tax)
The rates, the exemption and the major shareholder tests follow the National Tax Service guide to capital gains tax on shares. Confirm your own filing on Hometax or with a tax accountant.

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The first 2.5 million won is never taxed

Example
  • Gain for the year4,000,000 won
  • Annual exemption− 2,500,000 won
  • Taxable amount1,500,000 won
  • Tax at 22%330,000 won
A gain of 2,500,000 won or less produces no tax at all. The calculator applies the exemption for you.
A common misreadingWhat actually happens
22% of the whole gain22% of what is left after the exemption comes off
One exemption per accountOne exemption per person per year, across every market
Each stock taxed on its ownWins and losses in the same year are added together first

Korean shares and overseas shares part ways

Korean shares being tax free is about being a small shareholder trading on the exchange. It is not a blanket rule.
What you soldCapital gains taxAlso charged
Korean listed shares, sold on the exchange, small shareholderNone. This covers most individual investorsSecurities transaction tax on every sale, win or lose
Korean shares as a major shareholder, unlisted, or off marketTaxed, and the rate climbs with the taxable amountSecurities transaction tax
Overseas shares, such as US listings22% on the gain above the exemptionNothing extra on the Korean side
Capital gains tax, dividend tax and securities transaction tax are three separate things. This calculator handles the first one only.

Nobody withholds this one for you

  1. 1
    You sell during the yearYour broker settles the trade and takes nothing for capital gains tax.
  2. 2
    The year closesEvery gain and loss from January to December is added up into one figure.
  3. 3
    You file between May 1 and May 31This is your job, not the broker's. Many brokers offer a filing service you can opt into.
  4. 4
    You payLocal income tax of 10% of the tax is charged on top and paid at the same time.
Waiting for a tax slip that never comes is the most common way to miss this deadline. Nothing arrives, because nothing was withheld.

Tax resident or not, that comes first

Residency, not nationality, is the test. Someone on a work visa who has lived here a year is a tax resident like anyone else.
Tax residentNon-resident
Who countsYou keep a home in Korea, or you have been here 183 days or more in the tax yearEveryone else, including overseas investors trading Korean shares
Overseas sharesTaxed by Korea, and you file it yourself in MayNot Korean-source income, so Korea does not tax it
Korean sharesFollows the table above, so most small shareholders pay nothingYour broker or custodian withholds at the sale, and a treaty can remove it
Who does the paperworkYou doThe institution handling the trade usually does
We do not print a non-resident rate here. It changes with the treaty and with what you sold. Confirm yours with the National Tax Service or with your custodian.

FAQ ❓

If you are a tax resident of Korea, yes. Korea taxes a resident's worldwide income, so gains on overseas listings are Korean taxable income. The first 2.5 million won of your yearly gain is exempt, and 22% applies to the rest. If you are not a tax resident, those gains are not Korean-source income and Korea does not tax them.
For most individuals, yes, but the rule is narrower than it sounds. It covers listed shares sold on the exchange by a small shareholder. Major shareholders, unlisted shares and off-market deals are all taxed. Securities transaction tax is charged on every Korean sale regardless, whether you made money or lost it.
Not on overseas shares. Nothing is withheld and no slip arrives, which is why people miss it. You add up the year yourself and file between May 1 and May 31. Many Korean brokers offer a filing service you can opt into, but you have to ask for it.
No. Securities transaction tax is charged on the sale value of Korean shares whether you profit or not, and it is taken automatically. Capital gains tax is charged on profit only. Dividend tax is a third, separate thing. This calculator handles capital gains tax alone.
Your residency can end during a year, and that changes which gains Korea can tax. It is judged on your circumstances rather than on a single date, so if you are closing accounts and moving home, confirm your position with the National Tax Service before you sell.
It is one exemption per person per year, applied across Korean and overseas shares together, not once per account or per stock. Your gains and losses for the year are added up first, then 2.5 million won comes off, and 22% is charged on what remains. A yearly gain of 2.5 million won or less produces no tax.
No. US citizens report worldwide income to the IRS wherever they live, and foreign accounts can bring separate reporting duties. That is outside what this calculator covers, so speak to someone who handles US expat filings as well.

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