Year-End Tax Settlement in Korea for Foreigners (Yeonmal Jeongsan)
What the January–February year-end tax settlement is, how foreign employees take part, which documents and deductions matter, resident vs non-resident status, and what happens if you leave Korea mid-year.
The tax taken from your pay each month is only an estimate. In January and February, your employer works out the tax you really owe for the previous year and settles the difference in your February or March pay. This is the year-end tax settlement (연말정산, yeonmal jeongsan). Foreign employees take part exactly like Koreans.
How it works
- In January, the National Tax Service opens the simplified data service on Hometax (홈택스). It collects your card spending, medical bills, insurance premiums and other records automatically. Foreigners can log in with a certificate linked to their residence card number.
- You download the data and give it to your employer with a deduction form, together with documents the system does not hold, such as rent contracts or donations.
- Your employer calculates the final tax and adjusts your February or March pay.
If more tax was withheld than you owe, you get a refund. If less, extra tax is deducted.
Deductions foreigners commonly use
- Basic deduction for yourself and eligible dependents. Family members living abroad can count only in limited cases and with proof.
- Credit and debit card spending above 25% of your total pay.
- Insurance, medical and education credits, for spending in Korea with receipts.
- Monthly rent credit, if you meet the conditions (no home ownership, income limits, a registered lease).
- Pension savings and IRP contributions.
Some deductions, such as the housing subscription savings deduction, are limited to Korean heads of household.
Resident or non-resident?
For tax purposes you are a resident if you have an address in Korea or have stayed 183 days or more. Residents can claim all the usual deductions. Non-residents lose dependent deductions, special deductions and several tax credits. Most full-time foreign employees with a residence card are residents.
The flat tax option
During the settlement you can also choose the 19% flat tax instead of the normal calculation. You cannot claim any deductions under the flat rate, so it only helps very high earners.
Leaving Korea mid-year
When you leave a job, your employer settles your tax for the months you worked when paying your final salary. Only basic deductions are included, because the January data is not available yet. That often still produces a refund, since monthly withholding assumes a full year of pay. If you start a new job in Korea later in the same year, give your new employer the withholding receipt (근로소득 원천징수영수증) from your old one.
If you leave Korea permanently, you can claim missing deductions by filing a return in May of the following year through Hometax or a tax agent.
This guide reflects Korean laws and official notices as of 2026-10-08. Rules change, so confirm with the relevant agency before making important decisions.