What a Korean tax refund is and who receives one
A tax refund in Korea is money the Korean government returns to you when you have paid more income tax than you owe for the year. This happens most often to salaried workers whose employers withheld too much from their paychecks, or to self-employed people and business owners who overpaid during quarterly installments. Visitors and temporary residents may also receive refunds on certain purchases through the VAT refund system at airports and ports.
The Korean tax year runs from January 1 to December 31. Most salaried employees receive refunds through an annual settlement process called 연말정산 (yeonnaljeongsan), which employers handle in December or January. Self-employed people and business owners file their own returns and request refunds directly with the National Tax Service (국세청).
The amount of your refund depends on how much tax was withheld from your income, what deductions and credits you are may have access to to claim, and your total tax liability for the year. A larger refund does not mean you earned more money — it means more was taken out than necessary.
Key Takeaways
- Salaried employees in Korea receive refunds through yeonnaljeongsan (annual settlement) handled by their employer in December or January, not through a separate filing process.
- Self-employed people and business owners must file their own tax returns with the National Tax Service and request refunds directly if they overpaid.
- Refunds are typically deposited into your bank account within two to four weeks after the employer or tax office processes your settlement.
- Visitors and temporary residents can claim VAT refunds on purchases at participating stores, separate from income tax refunds.
- You can check the status of your refund through the National Tax Service website or by visiting a tax office in person with your identification.
How yeonnaljeongsan works for salaried employees
If you work as a salaried employee in Korea, your employer automatically withholds income tax from each paycheck. At the end of the year, your employer calculates whether the total withheld matches what you actually owe based on your full income and deductions. If you withheld too much, the employer issues a refund; if you withheld too little, you owe the difference.
Your employer handles this settlement between December and January. You do not file a separate return — the employer submits the settlement to the National Tax Service on your behalf. You will receive a statement showing the calculation, and the refund (if any) is deposited into your registered bank account. Most refunds arrive within two to four weeks, though timing varies by employer and bank.
Common reasons salaried workers receive refunds include having dependents, paying mortgage interest, making charitable donations, or having medical expenses that exceed a certain threshold. These reduce your taxable income and often result in a refund.
Filing for refunds if you are self-employed or run a business
Self-employed people and business owners in Korea must file their own tax returns with the National Tax Service. You cannot rely on an employer to handle the settlement. The filing deadline is typically May 31 of the following year, though the exact date is announced by the tax office each spring.
To file, you will need records of your income, business expenses, and any deductions you claim. You can file in person at a local tax office, by mail, or through the National Tax Service website using a digital certificate or mobile authentication. If you overpaid quarterly installments or made estimated payments that exceeded your final tax liability, you can request a refund as part of your return.
The National Tax Service will review your return and notify you of the refund amount. Refunds are deposited into your bank account, usually within four to six weeks of approval, though this can take longer if the tax office requests additional documentation or conducts a review.
Refund timelines and how money reaches your account
For salaried employees, refunds typically arrive between late January and mid-February, depending on when your employer completes the settlement and submits it to the tax office. The deposit goes directly to the bank account you registered with your employer.
For self-employed filers, the timeline is longer. After you submit your return by May 31, the tax office processes it over the following weeks. If no issues arise, your refund is deposited within four to six weeks. If the tax office needs more information, the process can extend to two or three months.
Refunds are always deposited by bank transfer — there is no option for a check or cash payment. Make sure your bank account information is current with your employer (for salaried workers) or with the National Tax Service (for self-employed filers). If your account details change, update them as soon as possible to avoid delays.
Checking your refund status with the National Tax Service
You can track your refund status through the National Tax Service website at www.nts.go.kr. Log in using your personal identification number and a digital certificate, or use the mobile app with phone authentication. The site shows whether your return has been received, processed, or approved, and displays the refund amount.
If you prefer not to use the website, you can visit a local tax office in person with your identification and ask a staff member to check your status. Tax offices are open Monday through Friday during standard business hours. You can also call the National Tax Service hotline, though wait times can be long during peak season (January through March).
If your refund is significantly delayed beyond the normal timeline, contact the tax office that processed your return. Delays sometimes occur if the office is reviewing your deductions or if there is a discrepancy in your filing.
VAT refunds for visitors versus income tax refunds
Visitors to Korea can claim refunds on the value-added tax (VAT) they paid on purchases at participating stores — this is separate from income tax refunds. VAT refunds are available at airports and ports when you leave the country, and the process is handled by private refund companies, not the government.
Income tax refunds, by contrast, are only for people who earned income in Korea and had tax withheld. Visitors do not file income tax returns in Korea unless they worked there during the year. If you worked in Korea as a temporary resident or on a visa, you may be may have access to to an income tax refund through the same yeonnaljeongsan or self-employed filing process as permanent residents, depending on your visa status and how long you worked.
The two refund types use different systems and timelines. VAT refunds happen at the airport when you leave; income tax refunds are processed by the National Tax Service and deposited to your bank account weeks or months later.
What to do if your refund does not arrive on time
If you are a salaried employee and your refund has not arrived by mid-February, contact your employer's human resources or accounting department first. They can confirm whether the settlement was submitted to the tax office and provide you with a reference number.
If your employer confirms the settlement was submitted but you still have not received the money, contact the National Tax Service with your reference number. They can tell you whether the refund was approved and when it was sent to your bank. If the tax office approved the refund but your bank has not received it, contact your bank directly — delays on the banking side are rare but do happen.
For self-employed filers, if your refund is more than six weeks overdue, call the tax office that processed your return. Ask whether your return is still under review or if there is a problem with your bank account information. If the tax office cannot locate your return, ask for a case number and follow up in writing.
Frequently Asked Questions
Can I get a refund if I worked in Korea for only part of the year?
Yes. Your refund is based on the total tax withheld from your income during the months you worked, compared to what you owe for those months. If you left Korea partway through the year, your employer or the tax office will calculate a refund based on your partial-year income and withholding.
What happens if I do not claim deductions I am may have access to to?
You will receive a smaller refund than you could have. For salaried employees, your employer handles the settlement using information you provide (dependents, mortgage interest, donations). If you do not report these, they are not included. You can file an amended return within five years to claim deductions you missed.
Do I need a Korean bank account to receive my refund?
Yes. Refunds are deposited by bank transfer only. If you do not have a Korean bank account, you will need to open one before filing your return or completing your employer's settlement. Some banks allow non-residents to open accounts; check with your bank about requirements.
Can I claim a refund if I am on a tourist visa?
No, not for income tax. Tourists do not file income tax returns in Korea. You can claim a VAT refund on purchases at the airport, but that is separate from income tax refunds. If you worked in Korea on a work visa, you would be may have access to to an income tax refund through the normal process.
What if the National Tax Service says I owe money instead of getting a refund?
This means your withholding was less than your actual tax liability. You will receive a bill for the amount owed, with a payment deadline (usually 30 days). You can pay online through the National Tax Service website, at a bank, or at a convenience store using the bill reference number.