South Korea

South Korea uses a progressive income tax system with eight brackets, ranging from 6% on income up to KRW 14,000,000 to 45% on income above KRW 1,000,000,000. Resident surtax (local income tax) adds 10% of the calculated income tax. The combined top marginal rate can reach approximately 49.5%. Social insurance contributions are shared between employer and employee, each paying approximately 9.5% of salary. This covers the National Pension (4.5% each), National Health Insurance (3.545% each), long-term care insurance (0.455% each), and employment insurance (0.9% each). Korea offers numerous deductions including credit card spending deductions (15-40% of excess over 25% of gross salary), housing-related deductions, education expenses, medical expenses, and pension contributions. The year-end tax settlement (yeonmal jeongsang) process can result in significant refunds. Capital gains on listed stocks are taxed at 20-25% for gains exceeding KRW 50,000,000. Financial investment income exceeding KRW 50,000,000 is also taxed. VAT is 10%. The corporate tax rate is 9% to 24% based on taxable income, with a local surtax of 10%.