[Song Seungseop's Financial Light] Financial System Changes in the Second Half of the Year

Annual Income Below 70 Million Won Eligible for 30% Movie Ticket Tax Deduction
14% Separate Tax Rate for High-Risk Bond Purchases
Overseas Remittance Limit Without Proof Raised from $50,000 to $100,000
Relief Procedures Begin for 'Face-to-Face Fraud Voice Phishing' Cases

The government has announced major policy changes for the second half of the year. Among these policies, many relate to finance. Here is a detailed guide on what is changing.

30% Income Deduction on Movie Tickets for Annual Salary Under 70 Million Won

First, starting from July 1, income deductions for movie ticket expenses have become available. This aims to reduce the tax burden on low- and middle-income earners. Previously, people earning 70 million won or less annually could apply a 30% income deduction rate on payments made for books, performances, art, and museums. Now, movie ticket expenses are also included.

Elderly Households Can Deposit Difference into Pension Accounts When Moving to Cheaper Housing

The guarantee of retirement income through personal retirement pensions is also being strengthened. Elderly households owning a single home can sell their current house and replace it with a lower-priced home, then deposit the difference into a pension account to use as retirement funds. This additional deposit is allowed up to 100 million won for couples owning one home jointly, where at least one spouse is aged 60 or older.

14% Tax Rate Separate Taxation for High-Risk Bonds

Separate taxation will be applied to high-risk, high-return bond investment trusts. Investment trusts that include a certain proportion of high-risk, high-return bonds will have interest and dividend income taxed separately at a 14% rate, up to 30 million won per person. Public funds must hold at least 45% BBB+ or lower corporate bonds and 60% or more domestic bonds, while private funds must include at least 45% BBB+ or lower and 15% A-grade bonds.

Non-Documented Overseas Remittance Limit Raised from $50,000 to $100,000

From July 4, the limit for overseas remittances without documentation will increase to $100,000. Since the enactment of the Foreign Exchange Transactions Act in 1999, the limit for non-documented overseas remittances had been fixed at $50,000. Going forward, remittances up to $100,000 can be made without providing documents proving the reason and amount. Additionally, large securities firms can now conduct general currency exchange services for individuals and businesses.

Foreign Investor Registration System Fully Abolished

From December 14, the foreign investor registration system will be abolished. This system was introduced in 1992 when foreign investment in listed stocks was permitted. Until now, global investors had to pre-register with the Financial Supervisory Service to invest in Korea, which was criticized as a barrier to attracting investment. However, from now on, securities firms will be able to open accounts immediately after real-name verification procedures, and individuals will manage account information using their passport numbers.

Relief Procedures Begin for Face-to-Face Voice Phishing

Starting November 17, relief procedures for face-to-face voice phishing will become available. Despite an increase in crimes where perpetrators meet victims in person to receive cash, it has been difficult to respond under the current legal system. From this date, face-to-face voice phishing will be included under the "Telecommunication Fraud Damage Refund Act," making payment suspension and victim compensation possible.

Financial Dispute Mediation System to Significantly Speed Up

The processing speed of the financial dispute mediation system is expected to increase. A financial dispute fast-track (expedited review system) will be introduced in the third quarter. As the number of financial disputes has increased, delays in processing and dissatisfaction with mediation results have been frequent. In response, the Financial Services Commission has established a system that proceeds directly to committee review and resolution after practical review, bypassing the agreement recommendation stage.

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