Skip to main content

Korea: Tax measures to support domestic investment, foreign exchange stability

Effective January 1, 2026

Share
February 3, 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

Thank you!

Thank you for contacting KPMG. We will respond to you as soon as possible.

Contact KPMG

Use this form to submit general inquiries to KPMG. We will respond to you as soon as possible.
All fields with an asterisk (*) are required.

Job seekers

Visit our careers section or search our jobs database.

Submit RFP

Use the RFP submission form to detail the services KPMG can help assist you with.

Office locations

International hotline

You can confidentially report concerns to the KPMG International hotline

Press contacts

Do you need to speak with our Press Office? Here's how to get in touch.

Headline