Korean stock tax basics for foreign investors
Reviewed October 15, 2026
This is general information to help you ask the right questions, not tax advice. Your own country's taxes also apply, and treaty rules depend on where you live.
General information only, not investment, legal or tax advice. Rules change: check the official sources linked here and your broker before you act.
Dividends
Korea withholds tax on dividends paid to non-residents: 22% including local income tax, unless a tax treaty sets a lower rate. With a 15% treaty rate the total is usually 16.5%, because a local tax of a tenth is added. Getting the treaty rate usually means giving your broker or custodian proof of residence.
Capital gains on listed shares
For non-residents, gains from selling shares listed on the Korea Exchange are generally not taxed in Korea if you (with related parties) held less than 25% of the company at any time in the previous five years. Many tax treaties also give an exemption. Your home country may still tax the gain.
Securities transaction tax
Sellers pay a small transaction tax on the sale amount, collected automatically. The rate has changed several times in recent years (for example 0.15% for KOSPI and KOSDAQ shares in 2025), and further changes have been proposed, so check the current rate with your broker.
Planned taxes that were dropped
A financial investment income tax on individuals' gains was planned for 2025 but was abolished before it started.
Questions people ask
How much tax do foreigners pay on Korean dividends?
22% including local tax by default, or a lower treaty rate (often 16.5% in total) if you provide proof of residence in a treaty country.
Do foreigners pay capital gains tax on Korean stocks?
Generally not in Korea for listed shares if you held less than 25% of the company in the past five years, and many tax treaties exempt the gain. Your home country's rules still apply.
What is the Korean securities transaction tax?
A small tax on the amount of each sale, withheld automatically. The rate changes from time to time; check with your broker.