Things to expect in 2021 in South Korea

Image from Vancouver Life

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

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