How are dividends taxed in South Korea?

Dividends from Korean companies are subject to a flat withholding tax of 15.4%, made up of 14% national income tax plus a 1.4% local income surtax. For most investors this withholding is final and no further filing is needed, so the net dividend is simply the gross amount less 15.4%.

What is the 20 million won financial-income threshold?

If your combined interest and dividend income for the year exceeds 20,000,000 won, you move into financial-income aggregate taxation. The first 20 million won is still taxed at the 14% flat rate, but the excess is added to your other income and taxed at your marginal rate (6–45%) under a comparative-tax calculation, with credit for the tax already withheld.

How does this tool handle aggregation?

When your total financial income is above 20 million won, the calculator taxes the first 20 million at 14% and applies your entered marginal rate to the dividend portion above the threshold, then adds the 10% local surtax. This mirrors the comparative method's typical outcome for higher earners; the exact official figure depends on your full income picture.

Do foreign or treaty rates change the figure?

Yes. Dividends paid to non-residents are usually withheld at 22% (20% plus surtax) unless a tax treaty reduces the rate — commonly to 10–15%. This tool models the resident 15.4% domestic rate; if a treaty rate applies to you, enter it as your effective rate or treat the result as indicative.

Is the 15.4% withholding the final tax?

For most retail investors whose total financial income stays under 20 million won, yes — the 15.4% withholding is final and separate, with no annual return required for those dividends. Only once you cross the aggregation threshold does the higher marginal treatment on the excess apply.

South Korea Dividend Tax Calculator

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This South Korea dividend tax calculator turns your gross dividends into a net figure after the flat 15.4% withholding tax and, where it applies, the financial-income aggregation rule that kicks in once your interest and dividends together exceed 20 million won in a year.

How it works

Korean dividends are withheld at a flat rate built from two parts:

withholding rate = 14% national + 1.4% local surtax = 15.4%

For the large majority of investors this is the final tax, so:

net dividend = gross dividend × (1 − 0.154)

Once your combined interest + dividend income for the year passes 20,000,000 won, you enter aggregate taxation. The first 20 million is still taxed at 14%, but the dividend portion above the threshold is taxed at your marginal rate (6–45%) and then the 10% local surtax is added:

base tax    = min(financial income, 20,000,000) × 14%
excess tax  = (dividends above threshold) × marginal rate
total tax   = (base tax + excess tax) × 1.10

Example

A retail investor receiving 8,000,000 won of dividends with no other financial income stays well under the threshold, so the tax is a flat 15.4% — a net of about 6,768,000 won. A higher earner with 35,000,000 won of dividends crosses the 20-million threshold: the first 20 million is taxed at 14% and the 15 million excess at their marginal rate, producing a larger effective bill.

Notes

This models the resident domestic rate. Non-resident and treaty rates differ (often 10–22%), and the official comparative-tax method weighs aggregate against separate taxation. Treat the result as an estimate and confirm with a Korean tax adviser.