Under Korean tax law, realized gains on foreign securities (such as US equities and ETFs) are subject to a flat 22% capital gains tax (20% national tax + 2% local income tax) on net annual gains exceeding the statutory ₩2,500,000 threshold.
💡 3-Minute BriefCore Rules
- ₩2.5M Annual Allowance: Net capital gains under ₩2,500,000 incur zero capital gains tax.
- Tax-Loss Harvesting: Offset realized capital gains by selling underperforming stocks before late December. Korea does NOT enforce a Wash Sale Rule, meaning you can rebuy immediately.
- T+2 Settlement Warning: Trade settlement takes 2 business days. Executing orders past the cutoff results in gains carrying over into next year’s tax basket.