Working in Korea

  If you are working in Korea, January and February are the most important months for your wallet. You will hear your Korean colleagues talking about "Yeon-mal-jeong-san" (연말정산) . For some, it’s a "13th-month salary" (a nice refund), while for others, it might mean paying a bit more. As a US expat or any foreign resident, understanding how this works can save you millions of Won. 1. What exactly is Year-End Tax Settlement? In Korea, your employer deducts a simplified income tax from your monthly paycheck. However, this is just an estimate. At the end of the year, the National Tax Service (NTS) calculates your actual tax based on your real spending, family situation, and investments. If you paid too much tax: You get a refund (Money back!). If you paid too little: You have to pay the difference. 2. Special Tax Benefits for Foreigners Expats often have access to two very powerful tax options that Koreans don't. You should check which one saves you more money: A...