South Korea Corporate Income Tax
Detailed corporate income tax rates and rules for South Korea in 2026.
South Korea's corporate income tax has a progressive structure effective January 1, 2026: 10% on income up to KRW 200 million; 20% on KRW 200 million to 20 billion; 22% on KRW 20 billion to 300 billion; and 25% on income exceeding KRW 300 billion. A 10% local income tax surcharge applies to the national corporate tax, bringing the effective top rate to 27.5%. Small and medium-sized enterprises (SMEs) benefit from various tax incentives, including reduced rates and R&D tax credits.
Standard Rate
25%
Small Business Rate
10%
Additional Notes
Korea imposes a minimum tax system to ensure that companies utilizing significant tax incentives still pay a minimum level of tax. The minimum tax rate ranges from 7-17% depending on company size. A corporate surtax on retained earnings may apply to certain large companies that accumulate excessive undistributed earnings. Transfer pricing rules follow OECD guidelines.
How South Korea Corporate Tax compares
South Korea’s corporate tax rate of 25% is the 69th highest of 203 countries TaxAtlas tracks, above the global average of 22.2% and Asia’s regional average of 19.7%.
