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4. Tax Rates and Credits
a.  Tax Rates
	(1)	The amount of income tax on global income is calculated by applying increasing
		marginal tax rates to respective tax base, and may be determined by using the
		following table.
	(2)  Table of Basic Tax Rates
			Tax base of global income					Tax rates
		10 million or less						8% of tax base
		10 million Won ~ 40 million Won						0.8 million Won + 17% of the amount
								exceeding 10 million Won
		40 million Won ~ 80 million Won						5.9 million Won + 26% of the amount
								exceeding 40 million Won
		Over 80 million Won						16.3 million Won + 35% of the amount
								exceeding 80 million Won
	(3)	The tax amount of retirement income is calculated by dividing the taxable income by
		the number of years of service, applying the tax rates, and again multiplying the
		amount by the number of years of service.
	(4)	Tax rates on timber income are the same as those applied to global income.
	(5)	Tax rates on capital gains are the same as basic tax rates except
		ㅇ property held more than one year and less than 2 year : 40%
		ㅇ property held less than one year : 50%
		ㅇ house falling into the category where a household holds three
			houses under the Presidential Decree : 60 %
		< house designated  by the presidential decree>
		① house located within metropolitan and megalopolis areas
		② house transferred at 300 million won or more among houses
			located other than metropolitan and megalopolis areas.
		* house with 18 pyong or less and house whose tax standard value is 40 million won
		or less are excluded from 60% of heavy tax.
		ㅇunregistered transferred property : 70%
		Tax rate for capital gain on stocks
			capital gain							Tax rates
		1) shares of non-small and medium sized company which								30%
			are held by large shareholders for less than one(1) year
		2)	shares of small and medium sized company							10%
		3)	shares other than 1) and 2)							20%
	(6)	Foreign employees and executives may choose between 17% tax rate on their
		salaries (schedular taxation) or have 30% of their income tax-exempt.
b.  Tax Credits
	(1) Tax credit for dividend income
		Where dividend income of a resident received from a domestic corporation is
		included in global income, the amount calculated as below is deducted from the
		global income tax amount.
		(a)  15/100 of the dividend income is added to the amount of dividend actually
			received by the shareholder.
		(b)  This figure is used in calculating the individual income tax amount of the
			shareholder.
		(c)  Thereafter, the amount (15/100 of the dividend income) added to the amount of
			dividend calculated in (a) above, is credited against the individual income tax amount
			calculated in (b) above.
	(2)  Foreign Tax Credit
		Where a resident has paid or is to pay income tax in a foreign country, the tax
		amount paid or payable is deducted from the amount of Korean income tax accrued
		with a limit.  This limit is an amount equivalent to that of the income tax owed without
		the application of this credit, multiplied by the ratio of income from foreign sources to
		total taxable income. If the foreign tax amount paid or payable exceeds this limit, the
		excess portion may be carried over for 5 years.
	(3) Tax credit for casualty loss
		When a resident loses 30% or more of the total value of his business assets from
		one or more disasters, an amount equal to the tax due without application of this
		credit times the ratio of the value of the lost assets over the total value of assets
		owned prior to a disaster is subtracted from the amount of tax due in the year of the
		disaster(s).(limited to the value of loss caused by casualty)
	(4) Special tax credit for wage and salary income
		The credit amount available for wage and salary income earners shall be calculated
		as the following table shows.  (The credit shall be limited to 500,000 won per year
		against global income)
			Tax base					Tax rates
		Not more than 500,000						55% of a global tax amount
		More than 500,000						225,000 + 30% of an amount in excess of
								500,000
c. Special Case in Calculation of Tax Amount
		When the amount of interest or dividend income included in the global income tax of a
		resident exceeds the amount set forth in the guideline as to global taxation (40 million
		won per year), the amount of tax on global income shall be the larger of the two shown
		below.
		(1) The sum of the following:
			(a)  The amount of global income tax calculated on the sum of:
				- the amount by which interest and dividend income exceeds 40 million won, and
				- the amount of global income other than interest or dividend income.
			(b)  6 million won, the amount of tax calculated by applying a withholding tax rate
			of 14% to 40 million won
		(2) The sum of the following:
			(a) 14% of the total interest and dividend income, and
			(b) the amount of tax computed on global income other than interest or dividend income.