Korea: Tax measures to support domestic investment, foreign exchange stability
Effective January 1, 2026
The Ministry of Economy and Finance of South Korea announced tax measures—effective January 1, 2026—to boost domestic investment and stabilize the foreign exchange (FX) market.
These include a capital gains tax exemption for reshoring investment accounts, varying by reinvestment timing, and deductions for FX hedging.
Additionally, the dividend received deduction (DRD) for Korean parent companies from foreign subsidiaries will increase from 95% to 100%, reducing double taxation.
For more information, contact a KPMG tax professional in Korea:
Min-Jung Hong | minjunghong@kr.kpmg.com