Bank of Korea base rate
2.75%
Where deposit rates start moving
Deposit protection limit
KRW 100M
Principal and interest combined, per institution
Tax on interest
15.4%
Income tax 14% + local income tax 1.4%
Tax on savings and interest
in Korea
Interest paid by a Korean financial institution arrives with 15.4% already withheld.
These pages set out where that rate comes from and what actually remains after tax.
not before it.
and clause it comes from.
the law was verified.
Three months is calculated as 92 days, and the amount received is the pre-tax figure less interest income tax of 15.4%. The rates shown illustrate the calculation and are not published rates for any specific product.
Where the rate splits
The same 15.4% does not
apply to every kind of interest
Deposits and installment savings are taxed at 15.4%, but a loan between individuals is taxed at 27.5%, and savings for those aged 65 or older can carry no income tax at all. What you hold decides the rate.
See the rates by typePre-tax interest KRW 1 million
What remains under each rate
KRW 846,000 reaches your account
KRW 725,000 reaches your account
The full KRW 1,000,000 remains
Illustration
Above the threshold
Crossing KRW 20 million
does not double your tax
Interest and dividends above KRW 20 million become subject to comprehensive taxation.
Article 62 applies whichever of two calculations is larger, so with no other income the additional tax is often zero.
Financial income KRW 30 million
Additional income tax by other income
Illustration
Every figure carries the date
it was verified
Tax law and published rates change.
Each page states the article it comes from and the date it was checked.
Where deposit rates start moving
Principal and interest combined, per institution
Income tax of 14% plus local income tax of 1.4%
Tax on savings and interest
KRW 10 Million in a Parking Account for Three Months: How Much Interest
The same amount over the same three months earns more than KRW 50,000 apart depending on the product.
Parking AccountsParking Account Interest: One Day, One Month, Three Months
It accrues by the day, and the preferential rate runs only for a set period.
RatesA Base Rate of 2.75%: What Happens to Deposits and Savings
Deposit rates moved even while the base rate stood still for six months.
Deposits & SavingsWhy the Same Monthly Contribution Produces Different Interest at Maturity
Where multiplying the total paid in by the rate diverges from the actual interest, starting from the calculation.
Government BenefitsHow Income Is Measured for Government Support Programs
What the standard median income is, and where your household size falls.
Deposit ProtectionHow Much Can You Safely Hold at One Bank
How principal and interest are counted together, and the basis for splitting across institutions.
TaxInterest Income Tax 15.4%: What Actually Remains from KRW 1 Million in Interest
Not one tax but income tax of 14% plus local income tax of 1.4%.
TaxFinancial Income Above KRW 20 Million: How Much the Tax Actually Rises
With no other income, even KRW 30 million produces no additional tax.
TaxSavings Taxed Less on Interest: Who Qualifies and Up to How Much
KRW 50 million in tax-free comprehensive savings and KRW 30 million in cooperative deposits, and their conditions.
TaxThe Tax Credit for Pension Accounts: What You Pay In and What Comes Back
Filling the KRW 9 million limit returns KRW 1,485,000 including local income tax.
TaxRising Interest Can End Health Insurance Dependent Status
Where the tax stays the same but a premium appears.
TaxThe Housing Subscription Savings Deduction: How Much Tax It Actually Removes
On KRW 3 million a year for a homeless householder with total salary of KRW 70 million or less.
TaxIncome Deductions and Tax Credits: The Same KRW 3 Million, a Different Result
Where it comes off opens a gap of more than double.
TaxWhen You Receive Interest, and Whether Splitting Maturities Cuts the Tax
The total tax stays the same; only the financial income in a single year moves.
TaxISA Accounts: How Much Tax Comes Off Interest and Dividends
KRW 2 million and KRW 4 million exempt, with 9% on the excess.
TaxThe Card Spending Deduction: Why the Same Amount Can Deduct Twice as Much
The calculation starts above 25% of total salary, and the rate differs by payment method.
TaxDoes Splitting Deposits Between Spouses Change the Tax
Assessed per person, with no gift tax up to KRW 600 million over ten years.
TaxWhy the Year-End Settlement Produces a Refund for Some and a Bill for Others
The gap between the tax withheld through the year and the tax actually due.
TaxThe Monthly Rent Tax Credit: What Comes Back on a Year of Rent
15% or 17% of rent up to KRW 10 million a year, straight off the tax.
TaxThe Medical Expense Credit Starts Above 3% of Total Salary
Where the threshold sits, and the limits that differ by whose expenses they are.
TaxThe Freelancer 3.3%: How the Withheld Tax Comes Back in May
Not the final tax — it is recalculated at the filing the following May.
TaxThe Tax on Pension Payments Falls With Age
5.5% under 70, 4.4% in the seventies, and 3.3% from 80.