How is capital gains tax (Yangdo sodeukse) charged in South Korea?

South Korea taxes capital gains under the transfer income tax (Yangdo sodeukse). Real property gains are taxed at progressive rates from 6% up to 45% after a basic annual deduction of 2,500,000 won, with a long-term special deduction that reduces the taxable gain for property held many years. A 10% local income surtax is added on top of the national tax.

Are gains on listed shares taxable?

For most ordinary retail investors, gains on shares listed on the KRX traded through the exchange are exempt from capital gains tax. The tax applies mainly to large shareholders (above an ownership or value threshold), to off-market transfers, and to unlisted shares, which are typically taxed at 20% (or 25% above a high gain), plus local surtax.

When is a primary home exempt?

A household's single primary residence is generally exempt from capital gains tax if it has been held for at least two years (with a residence requirement in regulated areas), up to a sale price of 1.2 billion won. Gains on the portion of the price above that cap, and on second or additional homes, remain taxable at the progressive rates.

What is the long-term holding special deduction?

For real property held three years or more, a special deduction reduces the taxable gain by a percentage that rises with the holding period — roughly 2% per year for general property up to a cap, and a more generous schedule for a qualifying owner-occupied primary home. Longer ownership therefore means a smaller taxable gain.

Does this include the local surtax?

Yes. The tool adds the 10% local income surtax to the national transfer income tax, as that is how the bill is actually levied. The result is still an estimate — special zones, multi-home heavy taxation, and exact deduction schedules can change the figure, so confirm with a Korean tax adviser.

South Korea Capital Gains Tax Calculator

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This South Korea capital gains tax calculator estimates the transfer income tax (Yangdo sodeukse) you would owe when you sell listed shares or real property. It applies the rules that make Korea distinctive — broad exemption for ordinary share gains, the basic annual deduction, the long-term holding special deduction, and the primary-home exemption — then adds the 10% local surtax.

How it works

For listed shares sold by an ordinary retail investor through the exchange, the gain is generally exempt, so the tool returns zero tax for that case and only charges tax where you flag a taxable transfer (large shareholder or unlisted), at a flat 20%.

For real property, the calculation is:

gross gain          = sale price − purchase price
holding deduction   = gross gain × long-term-holding %   (held ≥ 3 years)
gain after holding  = gross gain − holding deduction
taxable gain        = gain after holding − basic deduction (₩2,500,000)
national tax        = progressive 6–45% on taxable gain
total CGT           = national tax × 1.10  (adds 10% local surtax)

A qualifying primary home held at least two years is exempt up to the sale-price cap, so the tool zeroes the tax in that case.

Example

Selling a second property bought for 500,000,000 won at 800,000,000 won after eight years gives a 300,000,000 won gross gain. An eight-year general holding deduction trims the taxable gain, the 2,500,000 won basic deduction is applied, and the remainder is taxed on the progressive scale plus the 10% surtax — a materially smaller bill than taxing the full 300 million.

Notes

This is an estimate. Heavy multi-home surcharges in regulated areas, exact long-term deduction schedules, and the large-shareholder share rules can move the figure substantially. Always confirm with a Korean tax professional before acting.