2026 New Year Changes

Starting next year, a new Forest Disaster Response Team will be established and operated. The aim is to strengthen response capabilities by integrating functions that were previously dispersed into a single channel. In addition, the introduction of new smart forestry farms is intended to attract more young people to mountain villages. On December 31, the Korea Forest Service announced these changes in its "New Year’s Changes in Forest Policy." The updated forest policies focus on protecting the lives and property of citizens from forest disasters, encouraging population inflow into mountain villages, and increasing forest owners’ income to help overcome the risk of regional extinction. First, in order to respond quickly and systematically to increasingly frequent and large-scale forest disasters throughout the year, the Korea Forest Service will integrate the previously separate forest fire prevention and suppression teams, special forest fire disaster suppression teams, landslide fie

Starting in 2026, regulatory procedures at industrial sites will be streamlined. In addition, systems supporting business activities for small and medium-sized enterprises and startups?such as those related to entrepreneurship, research and development, and public procurement?will be significantly revised. The aim is to accelerate regulatory response times and reduce administrative burdens, thereby facilitating market entry and growth for businesses. First, the regulatory response procedures that have hindered the commercialization of new industries will also be expedited. The Industrial Convergence Regulatory Sandbox system will be improved, shortening the review period and enabling faster adjustment of unreasonable regulations. As a result, the time required from demonstration of new technologies and services to commercialization is expected to decrease. For identical or similar cases, the period for collecting opinions from relevant ministries will be reduced from the current 30 day

Starting next year, the national pension contribution rate will increase from 9% to 9.5%. The median income, which serves as the basis for calculating various benefits such as livelihood, medical, housing, and education support, will rise by 6.51% for a four-person household. As a result, the maximum monthly livelihood benefit will be 2,078,000 won, surpassing 2 million won for the first time. The Ministry of Economy and Finance published a booklet on the 31st titled "Changes from 2026 Onwards," detailing upcoming changes to health, welfare, and employment policies starting next year. In 2025, amendments to the National Pension Act will take effect, raising both the contribution rate and the nominal income replacement rate. The contribution rate will increase by 0.5 percentage points each year for the next eight years, starting from 9% this year to 9.5% next year. For employees, the portion of their salary paid as a national pension contribution will rise from 4.5% to 4.75%. The nomin

Starting next year, four-year-old children attending kindergartens and daycare centers will also be eligible for free education and childcare subsidies. The eligibility for the child care service support will be expanded from households earning up to 200% of the median income to those earning up to 250%. All university and graduate students will be able to receive tuition loans regardless of household income. The Ministry of Economy and Finance published a booklet on the 31st titled "These Are the Changes from 2026," which outlines various policy changes in the fields of education, childcare, and family support. According to the booklet, starting next year, free education and tuition support for children attending kindergartens and daycare centers will be expanded to include four-year-olds. While only five-year-olds were eligible this year, next year both four- and five-year-olds will be included, and by 2027, the coverage will extend to children aged three to five. Parents of eligibl

Starting next year, the government will significantly overhaul policies in the environment, energy, and meteorological sectors. The aim is to accelerate responses to the climate crisis and the implementation of carbon neutrality, while also strengthening the national safety net to prepare for complex disasters such as heatwaves and earthquakes. According to the "How Things Will Change from 2026" booklet published by the Ministry of Economy and Finance on December 31, a total of about 20 environment, energy, and meteorology-related policies will be newly introduced or revised, with the Ministry of Climate, Energy and Environment and the Korea Meteorological Administration taking the lead. First, the government will introduce a financial support system to expand the supply of zero-emission vehicles starting next year, improving financial accessibility for the purchase of electric and hydrogen vehicles. To address safety concerns that have arisen during the spread of electric vehicles, a

Starting next year, separate taxation will be introduced for dividend income from high-dividend listed companies. The credit card deduction limit for households with multiple children will be increased by 1 million won per person, and the non-taxable limit for childcare allowances will also be expanded. Additionally, a new 10% income and corporate tax credit will be established for webtoon content production costs. The Ministry of Economy and Finance announced on December 31 that, beginning next year, separate taxation at lower rates will be applied to dividend income for investors in high-dividend listed companies. For companies with a dividend payout ratio (cash dividends to net profit) of 40% or higher (including those with a payout ratio of at least 25% and an increase of 10% or more compared to the previous year), investors will be subject to separate taxation on dividend income as follows: 14% for amounts up to 20 million won, 20% for amounts between 20 million and 300 million w