A Korean account that lightens tax on interest and dividends
Korea's Individual Savings Account rests on the Restriction of Special Taxation Act, one account per person. Of the interest and dividends earned inside it, ₩2 million (₩4 million for lower-income, farming and fishing households) is tax-free, and the rest is taxed separately at 9% (as of 2026). You can pay in up to ₩20 million a year and ₩100 million in total, for a term of at least three years. Closing it within three years means the tax relief is clawed back. People taxed on aggregate financial income in any of the previous three years cannot open one.
With ₩2.5 million of interest and dividends, a standard account is tax-free up to ₩2 million and the remaining ₩500,000 is taxed at 9% (as of 2026).
For learning, not investment advice. Decisions are your own.
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