South Korea's 2026 year-end tax settlement pension-account tax credit for Korean residents: up to 6M KRW (pension savings alone) or 9M KRW (pension + IRP combined) at 16.5% or 13.2% credit rate.
| Category | Korean cap | Credit rate | Max Korean refund |
|---|---|---|---|
| Pension savings alone | 6M KRW / yr | 13.2% / 16.5% | 792k–990k KRW |
| IRP alone or combined | 9M KRW / yr | 13.2% / 16.5% | 1.188M–1.485M KRW |
| Korean salary > 55M KRW | Same | 13.2% (incl. local) | Applies |
| Korean salary ≤ 55M KRW | Same | 16.5% (incl. local) | Applies |
| ISA maturity → Korean pension account | 10% of rolled amount | Separate credit | Up to 3M KRW extra eligible |
| Item | Pension Savings | IRP |
|---|---|---|
| Eligibility | Anyone in Korea (no income needed) | Korean wage / business income earners only |
| Tax-credit cap | 6M KRW / yr | 9M KRW / yr (combined with pension savings) |
| Early withdrawal | 16.5% Korean misc-income tax (before 5-yr hold) | 16.5% Korean misc-income tax |
| Risk-asset cap | No Korean limit | Up to 70% of Korean balance (equity funds etc.) |
| Korean fees | 0% at Korean securities direct | 0.1–0.5% p.a. Korean management/admin fees |
| Korean pension start age | 55+ | 55+ and 5+ years Korean account |
| Korean pension tax rate | 3.3–5.5% Korean pension income tax | 3.3–5.5% Korean pension income tax |
Korean pension tax-credit caps and rates can change with Korean tax-law revisions — verify on Korea Hometax before filing.
This Korean calculator is a general simulation based on Korea NTS public information (April 2026) and has no legal effect. The actual Korean refund depends on gross salary, comprehensive income, assessed tax, pre-paid withholding, additional Korean deductions, and household composition; Korean early withdrawal of pension savings/IRP also triggers a 16.5% misc-income tax and other conditions. For 2026 year-end settlement, verify with Korea Hometax's 'Year-End Tax Preview' or a Korean tax professional. This page covers Korea-resident pension schemes only.
South Korea's pension savings (연금저축) and IRP (individual retirement pension) are Korean government-supported retirement accounts. At Korean year-end tax settlement, Korean residents get 13.2% (incl. local) or 16.5% (Korean salary ≤ 55M KRW / comprehensive income ≤ 45M KRW) of contributions back as a tax credit. For 2026 year, Korean pension savings alone cap at 6M KRW/yr; pension savings + IRP combined cap at 9M KRW/yr. Maximum Korean refund: 9M × 16.5% = 1,485,000 KRW (low bracket) or 9M × 13.2% = 1,188,000 KRW (high bracket). Contributions must be wired to the Korean account by Dec 31 to count for that year. Korean early withdrawal triggers a 16.5% misc-income tax on credited amounts. Rolling Korean ISA maturity proceeds into a Korean pension account adds 10% (up to 3M KRW) extra eligible credit — stacking to 12M KRW eligible per year for low-bracket Korean earners.
Fill Korean pension savings first to 6M KRW (no income requirement, lighter early-withdrawal rules) then add 3M KRW to Korean IRP. Korean IRP requires wage or business income and has a 70% risk-asset cap plus annual 0.1–0.5% Korean fees.
Korean wage earners use gross salary on the withholding receipt (line 16); Korean comprehensive-income earners use 45M KRW. Just below 55M KRW, stacking deductions to stay in the 16.5% Korean bracket is highly tax-efficient.
Yes — timing within the Korean year is irrelevant, only the annual total matters, provided the wire lands by Dec 31. Korean promises alone don't count; verify the transfer timestamp.
A 16.5% Korean misc-income tax applies to the credited principal + gains. E.g. 3M KRW credited → about 495k KRW Korean tax on withdrawal. Consider a Korean pension-account collateral loan (3–5% p.a.) before withdrawing.
Yes — within 60 days of Korean ISA maturity, rolling into a Korean pension account adds 10% (up to 3M KRW) to the separately-eligible credit pool, lifting max Korean eligibility to 12M KRW.
Korean pension withdrawals from age 55 are taxed at 3.3–5.5% pension income tax. Withdrawing more than 15M KRW/yr in Korea triggers comprehensive taxation or a 16.5% separate tax — staggered withdrawal is more efficient.
Korea's 2026 pension-account (연금저축 + IRP) tax credit caps at 9M KRW per year. Korean pension savings alone cap at 6M KRW; pension savings + IRP combined cap at 9M KRW. The Korean credit rate (incl. 1.5%p local income tax) is 16.5% for Korean salary ≤ 55M KRW / comprehensive income ≤ 45M KRW and 13.2% above. Maximum Korean refund: 9M × 16.5% = 1,485,000 KRW, or 1,188,000 KRW in the high bracket. Korean contributions must land in the account by Dec 31 of the contribution year, and Korean early withdrawal triggers a 16.5% misc-income tax on credited amounts. Rolling Korean ISA maturity proceeds into a Korean pension account within 60 days adds 10% (up to 3M KRW) extra Korean eligible credit, so low-bracket Korean earners can reach 12M KRW eligible per year (9M regular + 3M ISA). Korean pension savings has no income requirement; Korean IRP requires wage or business income and has a 70% risk-asset cap plus 0.1–0.5% p.a. fees — a common Korean strategy is filling 6M KRW pension savings first, then 3M KRW IRP. Korean pension withdrawals begin at 55 (plus 5 years of IRP ownership) and enjoy 3.3–5.5% pension income tax up to 15M KRW/yr. File via Korea Hometax year-end settlement; consult Korea NTS or the Korea FSS Pension Portal for the latest Korean rules.