Capital Gains Tax Korea: What You Need to Know

When working with capital gains tax Korea, the tax levied on profit from selling assets such as stocks, real estate, or digital tokens in South Korea. Also known as Korean capital gains tax, it plays a central role in how investors manage after‑tax returns. The framework sits inside Korean tax law, the collection of statutes that govern all forms of taxation in the Republic of Korea and dictates filing frequencies, exemptions, and penalty structures. For crypto enthusiasts, cryptocurrency taxation, the set of rules that treat virtual assets as taxable property directly feeds into the capital gains calculation. Likewise, anyone trading equities must heed stock market capital gains, the taxable portion of profit earned from buying and selling listed securities. Lastly, tax residency, the legal status that determines a person’s tax obligations based on where they live decides whether you fall under the standard rates or qualify for special exemptions. In short, capital gains tax Korea encompasses crypto gains, stock profits, and real‑estate sales, requires annual filing, and is shaped by residency rules.

How the Tax Works and What It Affects

The tax rate isn’t a one‑size‑fits‑all number. For most securities, the National Tax Service applies a flat 22% rate (including local surtax) once you surpass the yearly exemption threshold of 2.5 million KRW. Real‑estate gains are taxed on a sliding scale from 6% to 45% depending on holding period and price. Cryptocurrency, treated as property, follows the same 22% rule but only after you exceed the 2.5 million KRW exemption across all capital‑gain sources. If you’re a non‑resident who only trades abroad, you might face a 20% withholding tax on Korean‑source gains, but the double‑tax treaty with your home country could lower that rate. Deductions are limited: transaction fees, brokerage commissions, and documented acquisition costs can be subtracted, but personal expenses aren’t allowed. Timing matters—a short‑term flip (under one year) can push you into higher brackets for real‑estate, while long‑term holdings enjoy lower rates. The system also mandates that you report gains on the yearly “Comprehensive Income Tax Return” (종합소득세 신고) filed by May 31 for the previous calendar year.

Getting it right starts with tracking every sale, purchase price, and associated cost in a spreadsheet or a tax‑tech app that supports Korean reporting formats. Many investors use the National Tax Service’s “Hometax” portal to upload their data and calculate the due amount automatically. If your situation involves multiple asset classes, consider consulting a certified tax accountant who specializes in cross‑border crypto and real‑estate. Understanding the interplay between Korean tax law, residency status, and the specific asset class you’re dealing with prevents surprise penalties and maximizes after‑tax returns. Below you’ll find a curated list of articles that break down each piece of the puzzle – from crypto‑specific guidance to detailed stock‑market examples – so you can apply the right strategy to your own portfolio.