There are 16 national taxes and 11 local taxes in Korea. Expatriates deemed residents are subject to Korean tax on their worldwide income, including their investment income. The tax on the interest and dividend income subject to separate taxation is withheld at the source at a rate of 15.4 per cent (inclusive of the local income tax), which is a final tax. The top personal tax rate is 42 per cent (including a local income tax corresponding to 10 per cent of the personal income tax). In Korea, foreign workers can choose to pay a flat tax rate of 19 per cent on gross earnings. The tax-to-GDP ratio in Korea has increased from 21.5 per cent in 2000 to 28.4 per cent in 2018. The tax rates on individual income range from six per cent to 38 per cent. It is proposed to hike income tax on earnings exceeding one billion won (US$838,040) a year, to 45 per cent from 42 per cent currently. Taxes of up to 25 per cent will be imposed from 2023 on annual capital gains exceeding 50 million won (US$41,650) a year, for retail investors who trade listed shares. Stock transaction taxes will be cut in phases to 0.15 per cent by 2023 for KOSPI-listed shares from 0.25 per cent currently.

Taxation