KR|EN Calculate Interest

Bank of Korea base rate

2.75%

Where deposit rates start moving

Deposit protection limit

KRW 100M

Principal and interest combined, per institution

Tax on interest

15.4%

Income tax 14% + local income tax 1.4%

Deposits · Savings · Parking accounts · Pensions · Deductions · Tax

Tax on savings and interest
in Korea

Interest paid by a Korean financial institution arrives with 15.4% already withheld.
These pages set out where that rate comes from and what actually remains after tax.

Start with interest income tax Browse all articles
Figures you actually receive Amounts are calculated after tax,
not before it.
Cited to the statute Each rate carries the article
and clause it comes from.
Dated on the page Every page states the date
the law was verified.
MoneyTip · After-tax interest
Assumptions KRW 10 million92 days
Change amount or term
Stated rate Pre-tax interest Tax withheld What you receive
2.00% per yearInterest accrues for 92 days, not a full year KRW 50,410 −KRW 7,763 KRW 42,647
3.00% per yearOne point higher returns KRW 21,324 more after tax KRW 75,616 −KRW 11,645 KRW 63,971
4.00% per yearTwo points higher returns KRW 42,648 more after tax KRW 100,821 −KRW 15,526 KRW 85,295

Three months is calculated as 92 days, and the amount received is the pre-tax figure less interest income tax of 15.4%. The rates shown illustrate the calculation and are not published rates for any specific product.

Where the rate splits

The same 15.4% does not
apply to every kind of interest

Deposits and installment savings are taxed at 15.4%, but a loan between individuals is taxed at 27.5%, and savings for those aged 65 or older can carry no income tax at all. What you hold decides the rate.

See the rates by type

Pre-tax interest KRW 1 million

What remains under each rate

Deposits and savings15.4%

KRW 846,000 reaches your account

Loan between individuals27.5%

KRW 725,000 reaches your account

Tax-free comprehensive savingsExempt

The full KRW 1,000,000 remains

Illustration

Above the threshold

Crossing KRW 20 million
does not double your tax

Interest and dividends above KRW 20 million become subject to comprehensive taxation.
Article 62 applies whichever of two calculations is larger, so with no other income the additional tax is often zero.

See the calculation

Financial income KRW 30 million

Additional income tax by other income

No other incomeKRW 0
Other income KRW 20MKRW 100,000
Other income KRW 50MKRW 1,000,000
Other income KRW 88MKRW 2,100,000
Already withheldKRW 4,200,000
Filing dueMay 1–31

Illustration

Rates and conditions

Every figure carries the date
it was verified

Tax law and published rates change.
Each page states the article it comes from and the date it was checked.

2.75% Bank of Korea base rate Raised July 16, 2026 · verified August 2026
Where deposit rates start moving
KRW 100M Deposit protection limit Verified August 2026
Principal and interest combined, per institution
15.4% Tax on interest Verified August 2026
Income tax of 14% plus local income tax of 1.4%
Articles

Tax on savings and interest

Parking Accounts

KRW 10 Million in a Parking Account for Three Months: How Much Interest

The same amount over the same three months earns more than KRW 50,000 apart depending on the product.

 Deposits & Savings

Why the Same Monthly Contribution Produces Different Interest at Maturity

Where multiplying the total paid in by the rate diverges from the actual interest, starting from the calculation.

 Government Benefits

How Income Is Measured for Government Support Programs

What the standard median income is, and where your household size falls.

 Deposit Protection

How Much Can You Safely Hold at One Bank

How principal and interest are counted together, and the basis for splitting across institutions.

 Tax

Interest Income Tax 15.4%: What Actually Remains from KRW 1 Million in Interest

Not one tax but income tax of 14% plus local income tax of 1.4%.

 Tax

Financial Income Above KRW 20 Million: How Much the Tax Actually Rises

With no other income, even KRW 30 million produces no additional tax.

 Tax

Savings Taxed Less on Interest: Who Qualifies and Up to How Much

KRW 50 million in tax-free comprehensive savings and KRW 30 million in cooperative deposits, and their conditions.

 Tax

The Tax Credit for Pension Accounts: What You Pay In and What Comes Back

Filling the KRW 9 million limit returns KRW 1,485,000 including local income tax.

 Tax

Rising Interest Can End Health Insurance Dependent Status

Where the tax stays the same but a premium appears.

 Tax

The Housing Subscription Savings Deduction: How Much Tax It Actually Removes

On KRW 3 million a year for a homeless householder with total salary of KRW 70 million or less.

 Tax

Income Deductions and Tax Credits: The Same KRW 3 Million, a Different Result

Where it comes off opens a gap of more than double.

 Tax

When You Receive Interest, and Whether Splitting Maturities Cuts the Tax

The total tax stays the same; only the financial income in a single year moves.

 Tax

ISA Accounts: How Much Tax Comes Off Interest and Dividends

KRW 2 million and KRW 4 million exempt, with 9% on the excess.

 Tax

The Card Spending Deduction: Why the Same Amount Can Deduct Twice as Much

The calculation starts above 25% of total salary, and the rate differs by payment method.

 Tax

Does Splitting Deposits Between Spouses Change the Tax

Assessed per person, with no gift tax up to KRW 600 million over ten years.

 Tax

Why the Year-End Settlement Produces a Refund for Some and a Bill for Others

The gap between the tax withheld through the year and the tax actually due.

 Tax

The Monthly Rent Tax Credit: What Comes Back on a Year of Rent

15% or 17% of rent up to KRW 10 million a year, straight off the tax.

 Tax

The Medical Expense Credit Starts Above 3% of Total Salary

Where the threshold sits, and the limits that differ by whose expenses they are.

 Tax

The Freelancer 3.3%: How the Withheld Tax Comes Back in May

Not the final tax — it is recalculated at the filing the following May.

 Tax

The Tax on Pension Payments Falls With Age

5.5% under 70, 4.4% in the seventies, and 3.3% from 80.