South Korean Parliament Approves 30 Percent Dividend Tax Rate

South Korea’s National Assembly in Seoul voted on 1 December 2025 to adopt a new dividend tax schedule. The plan introduces four tax brackets, with a top rate of 30 % for dividends exceeding KRW5 billion (about US$3.7 million).

Dividends up to KRW20 million are taxed at 14 %, those between KRW20 million and KRW300 million at 20 %, between KRW300 million and KRW5 billion at 25 %, and above KRW5 billion at 30 %. The reform replaces the previous progressive system that could reach 45 % when dividend income was combined with other earnings, aiming for a fairer burden and to encourage long‑term shareholding.

The new rates take effect from next year, affecting high‑income shareholders. The change is part of broader stock‑market tax reforms, while a proposed increase in corporate tax rates remains unresolved.