Living in South Korea: 183 days, five-year rule for foreigners, and a time-limited 19% tax rate.

In South Korea, according to the Income Tax Law (2018 translation), residents are taxed on all income covered by the law, while non-residents are taxed only on their Korean-source income. A resident is defined as someone who has been domiciled or resident in Korea for at least 183 days. An exception applies to foreigners who have been domiciled or resident in Korea for a total of five years or less: their foreign-source income is taxed only if it is paid or transferred to Korea. For foreign employment income, Invest Korea describes a tax calculation based on 19 %, limited to cases prior to December 31, 2023: its current availability is not established here. This page does not provide the general tax rates, nor the taxation of dividends, capital gains, or wealth; these points should be verified with the National Tax Service (NTS).

Korean resident: a domicile or residence of 183 days

The Income Tax Law, in the English translation by the Korea Law Translation Center (latest amending law listed: Law No. 16104 of December 31, 2018), defines a resident as someone who has their domicile or residence in Korea for at least 183 days. A non-resident is anyone who is not a resident. An earlier version of the same law (up to Law No. 11873 of June 7, 2013) referred to one year. The duration varies between versions; only the current text is authoritative, which should be verified with the NTS.

The implementing decree, in the translation from the same center, specifies that domicile is determined based on objective facts of daily life, including the presence of a family living together in Korea and the possession of assets. It deems a person domiciled in Korea in two cases: their occupation requires them to reside there continuously for at least 183 days, or they have a family member living with them in Korea whose stay must last at least 183 days, taking into account their occupation or assets. The 2020 National Tax Administration (NTS) handbook for foreigners reiterates the same 183-day rule.

What is taxed: the resident's income, with an exception for foreigners

According to Article 3 of the law (2018 translation), residents are taxed on all income covered by the law, while non-residents are taxed only on their Korean-source income. The same article contains an exception: for a foreign resident who has been domiciled or resident in Korea for a total of five years or less during the ten years preceding the end of the tax period, tax is levied on foreign-source income only that paid in Korea or transferred to Korea. This exception is included in the 2018 version; its current wording can be verified with the NTS.

The resident's income is classified into three categories:

• total income, which adds up interest, dividends, business income, wages, pensions and other income; ;
• retirement income; ;
• capital gains.

The rates applicable to each of these sets are not included here.

Foreign employee: a fixed rate of 19 % limited in time

The Invest Korea website describes the calculation of income tax for foreign workers at a rate of 19% (%), from the moment they begin providing their services until a tax period ending within twenty years. The same passage specifies "limited to cases before December 31, 2023," meaning a regime limited to cases prior to December 31, 2023. The Invest Korea page does not display an update date (footer: 2024).

Articles on Korea.net also describe this rate without mentioning this time limit. The article from January 8, 2026, states that the option to choose the fixed rate of 19 % is available for up to 20 years, starting from the tax year in which the employee began working in Korea. This choice means foregoing tax exemptions, deductions, reductions, and credits. It is not available to individuals who own 30 % or more of their employer's capital. The article from January 7, 2025, also mentions 20 years. The article from January 26, 2023, refers to five years.

These sources disagree on the duration (five or twenty years) and also differ on the required start date. This discrepancy is not resolved here: the eligibility of the scheme for your situation, its duration, and the required start date must be verified with the Korean tax authorities before any decision is made.

An annual salary of 100,000,000 won: a numerical example (fictitious profile)

Situation. Minho, a fictional profile, is a foreign employee. His annual salary is 100,000,000 won (assumed amount). This example does not state that the 19 % scheme is available to him: Invest Korea limits it to cases prior to December 31, 2023. It only assumes, for the calculation, that Minho meets the conditions and opts into it.

Issue. He wants to measure the arithmetic effect of the rate of 19 % on his salary.

Strategy. He applies the fixed rate of 19 % to the salary, assuming that the scheme is applicable to him.

Result. In this scenario, the income tax on his wages is 19,000,000 won. This calculation ignores other potential local taxes, social security contributions, comparison with the general tax scale, and the issue of the scheme's accessibility, which are not addressed here.

Social security contributions: rates for July 2024

Cleiss publishes the following rates for employees, as of July 1, 2024, with a monthly ceiling of 6,170,000 won for the old-age branch:

For self-employed workers, the mandatory old-age pension contribution is 9 %, with the same ceiling. The Cleiss notes that the old-age pension rate includes a portion for health insurance and long-term care; these details and other branches are not included here.

The social security agreement between France and Korea was signed in Paris on December 6, 2004. It allows for a posting with a foreseeable duration not exceeding 36 months, extendable by mutual agreement for up to an additional 36 months. The Cleiss (French Centre for Social Security Information) specifies that the agreement does not include any coordination provisions for health and maternity insurance: family members remaining in France have no rights in this regard.

The official NTS guides

The NTS publishes on its website, for foreign nationals, a guide to income tax and benefits for 2026 (filing 2025 income tax return), dated April 30, 2026, and a guide to filing the 2025 global income tax return, without a date displayed. These are PDF files whose content is not reproduced here.

What this page does not cover

It does not provide information on the progressive tax scale, local taxes, dividend and capital gains taxes, wealth tax, inheritance tax, local savings and assurance-vie taxes, or visa requirements. Local tax matters should be verified with a professional based in Korea. French tax matters, including the departure tax return and the accounts to be declared, are covered in our pages on tax residency and exit tax, as well as in our page on the France-South Korea tax treaty.

What changes depending on your situation

• The number of days spent in Korea and the existence of a residence.
• The number of years spent in Korea with a home or residence.
• The presence of your family in Korea.
• The start date of your activity in Korea.
• Your share in your employer's capital.
• The nature of your income: salaries, dividends, capital gains.

The rule depends on your situation. No results are guaranteed.