2026 Korean Earned Income Tax Credit (EITC) — Complete Guide

Korea's Earned Income Tax Credit (EITC, 근로장려금) is a refundable tax credit that pays up to KRW 3.3 million annually to working households with modest income. For 2026, the regular application window is May 1–31, with a half-year option available in September. Many eligible households miss out simply because they don't apply.

Who Qualifies in 2026

• Single household: annual income under KRW 22 million, assets under KRW 240 million
• Single-earner household: annual income under KRW 32 million, assets under KRW 240 million
• Dual-earner household: annual income under KRW 38 million, assets under KRW 240 million

Income includes wages, business income, and other taxable receipts. Assets count real estate, vehicles, deposits, and securities at fair market value as of June 1. Tenant-owned housing is excluded but jeonse deposits count partially.

Maximum Payouts

Single households can receive up to KRW 1.65 million, single-earner households up to KRW 2.85 million, and dual-earner households up to KRW 3.3 million per year. Payments scale by income, peaking in the middle income band, then taper to zero as income approaches the cap.

Application Methods

1. Regular application (May 1–31): Files with NTS Hometax or the mobile Sontax app. Payment in late August.
2. Half-year application (Sep 1–15): Wage earners only. First half paid in late December, balance settled the following June.
3. By phone (1544-9944): Automated voice service for previously qualified households.

Common Mistakes That Disqualify You

• Failing to report a co-resident family member's income (counts toward household income)
• Assets exceeding KRW 240 million on June 1 (even temporarily, e.g., real estate sale proceeds sitting in bank)
• Missing the application window — there is no automatic enrollment
• Not filing comprehensive income tax in May (required prerequisite for self-employed)