Increase of Non-Taxable Limit for Credit Union Investment Funds to 20 Million Won

Starting this year, the tax-exempt limit on dividend income from member shares in the National Credit Union Federation of Korea has been raised from 10 million KRW to 20 million KRW.

On December 21st last year, the National Assembly plenary session passed the "Restriction of Special Taxation Act" to support asset formation for ordinary citizens. With the passage of this law, the tax-exempt limit on credit union shares, which was raised from 5 million KRW to 10 million KRW in 1992, has increased for the first time in 32 years.

From the 1st of this month, income tax will not be imposed on dividends up to 20 million KRW from member shares. Assuming a tax-exempt investment of 20 million KRW and an annual dividend rate of 4%, the dividend income (800,000 KRW) will be exempt from income tax. In particular, the tax-exempt dividend income is excluded from the current comprehensive financial income taxation threshold amount (20 million KRW).

An official from the credit union stated, “With this amendment to the Restriction of Special Taxation Act, we expect the capital structure to improve through increased member share investments,” adding, “Furthermore, we plan to build a solid financial structure and carry out various return projects for the local community.”

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