I am Hwang Jeong-min, a tax accountant from Serim Tax Corporation.

 

According to the following attached law, non-residents are not subject to capital gains tax on domestic listed stocks unless they are major shareholders with a stake of 25% or more.
[Enforcement Decree Article 179, Exclusion clause for residents and their special relations with less than a 25% stake]

However, securities transaction taxes are levied, as is the case with residents in Korea.

If you need detailed advice on residency determination, estimated securities transaction tax amounts, or other specific matters, please contact us, and we will provide you with a detailed response.

Thank you.

 

Income Tax Law Article 119 [Income from domestic sources for non-residents]

The income from domestic sources for non-residents is classified as follows (amended as of December 30, 2006):

11. Income from the transfer of domestic securities: Income generated from the transfer of stocks or equity interests (including real estate stocks listed on the securities market) or other securities as defined by the Capital Market and Financial Investment Business Act. The income is determined by the presidential decree (amended as of December 31, 2018).
a. Stocks or equity interests issued by domestic corporations (amended as of December 31, 2009).
b. Stocks or equity interests issued by foreign corporations (limited to those listed on the securities market) (amended as of December 31, 2018).
c. Other securities issued by the domestic business establishment of a foreign corporation (added as of December 31, 2018).

 

Article 179 [Scope of income from domestic sources for non-residents]

Subsection 11 of Article 119, which refers to "income determined by the presidential decree," includes the following types of income (amended as of February 18, 2010):

1. Income generated by the transfer of stocks or equity interests by non-residents. However, this excludes income generated by the transfer of stocks or equity interests through the securities market (including transfers through brokerage as defined by Article 78 of the Capital Market and Financial Investment Business Act). This exclusion applies when the transferor and the related party under Article 98, paragraph 1, do not own 25% or more of the total issued stocks or capital contributions of the corporation issuing the stocks during the year in which the transfer of stocks or equity interests occurs and the previous five years (amended as of February 2, 2012).

2. Income generated by the transfer of securities other than stocks and equity interests by non-residents with a domestic business establishment. However, this excludes income taxed under the provisions of Article 119, paragraph 1 of the law at the time of the transfer of the securities (amended as of December 30, 2000).

3. Income generated by non-residents without a domestic business establishment through the transfer of securities other than stocks and equity interests to a domestic corporation, resident, or non-resident/foreign corporation with a domestic business establishment. However, this excludes income taxed under the provisions of Article 119, paragraph 1 of the law at the time of the transfer of the securities (amended as of December 29, 2000).