In the year 2021, there are some policy changes that will affect the different aspects of life and business in South Korea. Here are some of them:
- Increase the comprehensive real estate tax rate of multiple homeowners to a maximum of 6 percent
- Heavy transfer tax for multiple homeowners in the areas subject to adjustment
- Simple taxation applied to private businesses with annual sales of less than 80 million won
- Increase the income tax rate to 45% for high-income earners with an annual income of more than 1 billion won
- Issuance of cash receipts will be mandatory for nine industries such as hair salons, retail clothing shops, phone shops, and others
- Up to 12% tax deduction for new growth technology investment companies
- Securities transaction tax rate will be lowered to 0.08% on KOSPI and 0.23% on KOSDAQ respectively
- Full free education for high school – including admission, tuition, administrative fees, and textbooks
- Minimum wage increase to 8,720 from January 1 to December 31
- Liability insurance subscription for owners of dogs such as pit bull terriers
- Increase the amount of support for Nuri culture card
- Annual salary increase for soldiers – From 548,900 to 608,500 for sergeants and from 408,100 to 459,100 won for privates
- Postponement of mandatory military service for pop culture artists who have contributed to strengthening the national status by performing on the world stage (BTS Law)
- Strict response to domestic violence and strengthening the protection of victims
Source: Minimum wage increase and other policy changes in 2021