Overview
- Dividend income will face separate graduated rates of 14%, 20%, 25% and 30%, with the top bracket applying to amounts above 5 billion won.
- The scheme applies only to companies paying out at least 40% of profits or at least 25% with a year-on-year dividend increase of 10% or more.
- The new system takes effect next year for a three-year period under the Restriction of Special Taxation Act.
- Lawmakers say the practical top rate for most taxpayers will be 25%, noting the above‑5‑billion‑won bracket covers roughly 100 people.
- Talks on corporate tax rate changes remain unresolved after floor leaders failed to strike a deal, with further negotiations scheduled.