Average Household Earned Income Tax Credit 440,000 KRW in First Half of Year... Early Payment Today

4.952 Trillion KRW Paid to 1.12 Million Households... 98.1 Billion KRW Increase from Previous Year
Second Half Earned Income Tax Credit Settlement Moved Up from September to June

[Sejong=Asia Economy Reporter Kim Hyun-jung] The National Tax Service announced on the 9th that it has paid a total of 495.2 billion KRW in the first half of this year's Earned Income Tax Credit (EITC) to 1.12 million low-income working households. To support overcoming COVID-19, the legal deadline for EITC payments, originally set for the end of this year (December 30), was moved up by more than 20 days, with an average payment of about 440,000 KRW per household.

The total payment amount increased by 98.1 billion KRW compared to the previous year (397.1 billion KRW). By household type, single-person households accounted for the largest share with 670,000 households (59.8%), followed by single-earner households with 410,000 households (36.6%), and dual-earner households with 40,000 households (3.6%).

By employment type, daily wage worker households (54.5%) outnumbered regular wage worker households (45.5%), and by age group, those aged 60 and over (39.3%) were the largest.

Starting next year, a revised law will be implemented to simultaneously carry out the payment and settlement of the second half EITC. Accordingly, the settlement period for the EITC will be moved up from September to June.

The EITC is paid to households that meet the annual combined spousal income and asset requirements (single-person 20 million KRW, single-earner 30 million KRW, dual-earner 36 million KRW, and total household assets under 200 million KRW) and have earned income.

The semi-annual EITC pays 35% of the estimated annual amount in two installments in the first and second halves of the year, followed by a settlement process.

This content was produced with the assistance of AI translation services.