Tax

Pension Savings and IRP Tax Credit (연금저축·IRP 세액공제): How to Apply, Amount & Eligibility (2026)

Pension savings of KRW 6,000,000 + IRP combined limit of KRW 9,000,000 per year; credit rate 15% (gross salary KRW 55,000,000 or less) or 12%

This page is a translation of the Korean original and is for reference only. The official Korean guidance is the authoritative source for amounts and conditions, so be sure to confirm on the official website before applying. View Korean original (한국어)

Benefit: Tax credit on pension savings of KRW 6,000,000, and up to KRW 9,000,000 combined including retirement pension (IRP, DC). Credit rate 15% for gross salary of KRW 55,000,000 (comprehensive income amount KRW 45,000,000) or less and 12% above that = maximum KRW 1,350,000 / KRW 1,080,000 (local income tax of 10% is separate). If ISA maturity proceeds are deposited into a pension account, 10% of the transferred amount (up to KRW 3,000,000) is recognized as an additional limit (only in the year of deposit). 2026 tax reform proposal: a 15% preferential rate on IRP contributions by youth aged 15-34 (full age) (government proposal).
Who is eligible: Residents with comprehensive income (including earned income)
When to apply: Contribute during the year; the credit is claimed at year-end tax settlement (January-February) or May comprehensive income tax filing
How to apply: Contribute to pension savings and IRP via a financial company's app. Contributions are looked up automatically on the simplified service
Important notes: Contributions made by Dec 31 of the year are eligible for the credit
Note: Pension savings and IRP share a combined limit. Early termination triggers other income tax. Business owners with comprehensive income can also claim the deduction.

Go to the official guide →

Based on official sources as of 2026년 10월. Amounts and requirements may change, so please confirm with the official guide before applying.

Frequently asked questions

Pension Savings and IRP Tax Credit (연금저축·IRP 세액공제): who can receive it?

Residents with comprehensive income (including earned income)

Pension Savings and IRP Tax Credit (연금저축·IRP 세액공제): how do I apply?

Contribute to pension savings and IRP via a financial company's app. Contributions are looked up automatically on the simplified service

Pension Savings and IRP Tax Credit (연금저축·IRP 세액공제): how much will I receive?

Tax credit on pension savings of KRW 6,000,000, and up to KRW 9,000,000 combined including retirement pension (IRP, DC). Credit rate 15% for gross salary of KRW 55,000,000 (comprehensive income amount KRW 45,000,000) or less and 12% above that = maximum KRW 1,350,000 / KRW 1,080,000 (local income tax of 10% is separate). If ISA maturity proceeds are deposited into a pension account, 10% of the transferred amount (up to KRW 3,000,000) is recognized as an additional limit (only in the year of deposit). 2026 tax reform proposal: a 15% preferential rate on IRP contributions by youth aged 15-34 (full age) (government proposal).

Pension Savings and IRP Tax Credit (연금저축·IRP 세액공제): when can I apply?

Contribute during the year; the credit is claimed at year-end tax settlement (January-February) or May comprehensive income tax filing