South Korea's Special Tax Treatment Control Act §30 — youth aged 15–34 hired at a Korean SMB receive a 90% income-tax reduction (annual cap 2M KRW) for 5 years. 2026 figures.
| Item | 2026 Standard |
|---|---|
| Age (years) | Age: 15–34 at the Korean hire date (military service subtracted) |
| Employment | Employment: hired as a regular employee at a Korean SMB (per Korean SMB Basic Act) |
| Excluded | Excluded industries: certain Korean hospitality/gambling lines — see the Korean tax-law annex |
| Duration | Duration: 5 years per employee (whether changing employers continues the clock — consult Korean NTS) |
| Rate | Rate: 90% of income tax |
| Cap | Cap: 2,000,000 KRW per year |
Disclaimer: This page summarizes Korea's Special Tax Treatment Control Act §30 and public 2026 Korean NTS commentary for reference. Actual eligibility and exemption amount depend on your specific Korean industry, employer, and the current Korean tax law. Consult Korean NTS (Hometax / your local tax office) or a licensed Korean tax accountant before acting. This site is a privately operated information resource, not affiliated with the Korean NTS or MSS.
Under Korea's Special Tax Treatment Control Act §30, youth aged 15–34 hired at a Korean SMB receive a 90% reduction on income tax for 5 years, capped at 2,000,000 KRW per year. Still in effect in 2026.
Similar (but lower-rate) reductions exist for Korean workers aged 60+, persons with disabilities, and women returning after career breaks. Korean military service (up to 6 years) is subtracted from age, so someone hired at 33 after 2 years of service still qualifies.
1. By the end of the month following your start date, submit the Korean NTS SMB Youth Tax Exemption application form to your employer (the withholding agent).
2. The Korean employer files it with the local tax office via Hometax or paper. You may also apply directly on Korean Hometax.
3. The exemption is then automatically applied to your Korean payroll withholding. Missed applications can still be recovered via year-end settlement or amended-return claim (up to 5 years back).
Use sminfo.mss.go.kr (Korean SMB Information System), or request an SMB certificate from your HR team. Large Korean enterprises, public institutions, some finance roles, and adult-entertainment businesses are excluded.
Up to 6 years of Korean military service is subtracted from your age for eligibility. Example: hired at 36 after 2 years of service → effective age 34 → qualifies.
Yes. You can file an amended return (경정청구) on Korean Hometax and recover up to 5 years of past withholding.
Normal Korean withholding resumes. The 5-year clock typically runs from the initial hire date, regardless of job changes.
You pay normal Korean tax on the excess. Example: tax 4M × 90% = 3.6M but cap 2M applies, so exemption = 2M, you pay the remaining 2M.
Under Korea's Special Tax Treatment Control Act §30, Korean youth (15–34) hired at a Korean SMB receive a 90% income-tax exemption, capped at 2M KRW per year, for 5 years. Still active in 2026.
To qualify you must be hired as a regular employee at a Korean SMB (per Korean SMB Basic Act); certain Korean industries (adult entertainment, gambling) are excluded. Check SMB status via sminfo.mss.go.kr.
Applications are filed by your Korean employer or yourself via Korean Hometax. Missed filings can be recovered via amended returns up to 5 years back. This page links to the official Korean sources; verify specifics with the Korean NTS or a licensed Korean tax accountant.