South Korea Offers Tax Administration Relief for Foreign Investors Who Boost Investment
South Korea’s National Tax Service (NTS) has announced a series of new tax administration policies to attract foreign direct investment (FDI). These policies are aimed at encouraging an increase in foreign investment while creating job opportunities for the younger generation in South Korea. The official announcement regarding the measures was published on the NTS official website on 18 May 2026.
Details of the tax relaxation rules were presented by the NTS during a special meeting attended by representatives of several foreign chambers of commerce. These included chambers of commerce from the United States (AMCHAM), Europe (ECCK), Germany (KGCCI), France (FKCCI), the United Kingdom (BCCK), Japan (SJC), China (CCCK), and Australia (AustCham).
Under the new policy, foreign companies that increase their domestic investment or expand their number of young workers by at least 10% compared to the previous year will receive tax administration relief. These companies will be exempt from certain international tax-related corporate tax filing reviews for a full year, provided there are no indications of tax avoidance.
In addition to the tax review exemption incentive, the South Korean government is also providing additional support to facilitate business operations. This support includes expedited preliminary review processes for companies applying for tax credits for research and development (R&D) activities. The government is also providing a dedicated consultation channel for foreign companies, which can be accessed through tax offices in the Seoul, Jungbu, and Incheon regions. Regarding international tax matters, the NTS is expanding consultation services related to the implementation of the Global Minimum Tax and simplifying Advance Pricing Agreement (APA) procedures.
The NTS stated that these measures aim to improve the investment climate in South Korea comprehensively. The institution hopes this policy will provide greater legal and administrative certainty for foreign business entities, thereby supporting sustainable economic growth and job creation.