For wage earners and expats paying Korean earned income tax, contributing to Personal Pension Savings (연금저축) and an Individual Retirement Pension (IRP) is the single most lucrative tax shelter, yielding up to ₩1,485,000 in direct cash tax credits on a ₩9,000,000 contribution.
💡 3-Minute BriefCore Matrix
- ₩9M Combined Limit: Pension Savings covers up to ₩6M; the remaining ₩3M requires an IRP.
- Tax Refund Brackets: 16.5% refund (₩1.485M) for gross salary under ₩55M; 13.2% (₩1.188M) for higher incomes.
- 70% Safe Asset Rule: IRP mandates 30% allocation to bonds/principal-guaranteed deposits; Pension Savings allows 100% equity ETFs.