Tax & Tax Saving
ISA tax-saving calculator
Compare the after-tax amount of the same investment in an ISA versus a regular account, reflecting the tax-free allowance and the 9.9% separate taxation.
Enter values and press Compare after tax
Tax saved with an ISA
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ISA after-tax amount
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Regular account after-tax amount
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ISA tax at maturity
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Individual Savings Account
The same investment is taxed less inside an ISA
Interest, dividends, and trading gains earned inside an ISA are netted together and taxed only once, when you close the account. Gains up to KRW 2 million (KRW 4 million for the low-income type) are tax-free, and anything above that is taxed at just 9.9% instead of 15.4%.
Type and contributions
Choose the general or low-income type, then enter your annual contribution and holding period.
Assets and returns
The more an asset's trading gains are taxed in a regular account, as with Korea-listed overseas ETFs, the bigger the ISA benefit.
After-tax comparison
Compare the after-tax amount of the same investment in a regular account, and review transferring to a pension account after maturity.
How it is calculated
- ISA: Returns are left untaxed and keep compounding each year; at maturity, 9.9% (including local tax) is applied to the portion of (account value − contributed principal) that exceeds the tax-free allowance.
- Regular account: 15.4% is withheld on distributions and dividends each time you receive them, and the remainder is reinvested. For Korea-listed overseas and bond ETFs, 15.4% also applies to trading gains when you sell; for Korean stocks, trading gains are tax-free.
- Contributions are assumed to be made at the start of each year, and amounts above the KRW 20 million per year and KRW 100 million total limits are not put into the ISA.
- Trading gains on Korean stocks are not taxable income even inside an ISA, so if you choose Korean stocks, the ISA's taxable amount is calculated from dividends only (detailed rules such as netting Korean stock trading losses are simplified).
- Cases where financial income in a regular account exceeds KRW 20 million per year and is subject to comprehensive taxation, as well as fees, are not reflected. If you are actually subject to comprehensive taxation, the ISA benefit is even larger.
FAQ
Do I have to close the account after 3 years?
No. The 3 years is only the mandatory holding period; you can set a longer maturity or extend it. However, the tax-free allowance applies once over the account's whole life, so many people close the account at maturity and open a new one to use the allowance again.
What happens if I close it before 3 years?
If you close it before the mandatory holding period, the tax benefits received so far are clawed back and the same 15.4% rate as a regular account applies. Early withdrawals are allowed up to the amount of principal you contributed.
If I only buy Korean stocks, do I not need an ISA?
Trading gains on Korean stocks are tax-free even in a regular account, so the benefit is small. Only dividends get tax savings, so the ISA benefit grows when you hold high-dividend stocks or Korea-listed overseas ETFs and bonds.
Are losing products netted against gains?
Yes. An ISA taxes only the net profit, combining gains and losses within the account. If one product loses money, it offsets gains from other products and reduces the tax.
What is the benefit of moving maturity funds to a pension account?
If you transfer them to pension savings or an IRP within 60 days of maturity, 10% of the transferred amount (up to KRW 3 million) can be added to the tax credit base. Check your refund in the Pension Savings & IRP Tax Credit Calculator.
Can anyone open one?
Residents aged 19 or older (15 or older if you have earned income) can join. However, you cannot join if you were subject to comprehensive taxation of financial income even once in the previous 3 tax years.
Results are estimates based on your inputs and simplified assumptions, and are for reference only, not a basis for investment decisions.
Tools that work well together
Pension Savings & IRP Tax Credit Calculator
Calculate your year-end tax settlement refund from pension savings and IRP contributions, and how much room is left under the limit.
After-tax Return Comparison by Account
Compare after-tax results when making the same investment in a regular account, ISA, pension savings account or IRP.
After-tax comparison of Korea-listed vs US-listed ETFs
Compare the tax on distributions and trading gains, and the after-tax amount, when you buy the same S&P 500 ETF listed in Korea versus listed in the US.