TAXPAYER

Taxpayer, who is liable to pay the income tax on his/her income, is classified into

Resident and Non-resident in terms of whether a country has the taxing right on

his/her worldwide or just domestic income, and the scope of income deduction

pursuant to the provisions of Income Tax Law of Korea.

A. Resident

Principally, a resident is any individual who has his/her domicile in Korea or a place

of residence for 1 year or more in Korea. The domicile shall be judged by the

objective facts of living relationship, such as the existence of a family living together

in Korea and of the property located in Korea. And, the 'place of residence' means

the place where a person has dwelt for a long time besides his address, and in

which no close general living relationship is formed as the domicile.

A taxpayer who falls within in the following cases is deemed to have a domicile in

Korea.

1) Who has an occupation which would require him to reside in Korea for 1 year or

more; or

2) Who has his family in Korea and is likely to reside in Korea for 1 year or more in

view of his occupation or assets held in Korea.

A resident is subject to income tax on all incomes derived from sources both within and

outside the country.

B. Non-Resident

Any individual other than a resident is a non-resident, who is liable to income tax only

on the income derived from sources within Korea.