[Alpha Biz= Kim Jisun] South Korea’s Ministry of the Interior and Safety announced on April 21 that taxpayers will be able to receive local tax refunds through mobile payment platforms such as Naver Pay and Kakao Pay starting in June.
The ministry said it will pre-announce revisions to subordinate regulations under the Local Tax Revenue Act beginning April 22. The amendments include delegated provisions set to take effect in 2026, as well as measures to prepare for property tax assessments scheduled for July and September.
Until now, taxpayers could only receive local tax refunds via cash or bank transfers in cases such as overpayment, administrative errors, or regulatory changes. As a result, many small refund amounts often went unclaimed due to the inconvenience of procedures like registering bank account details.
Under the revised rules, refunds will also be payable through prepaid electronic payment methods (pay money), enabling more convenient and accessible disbursement.
To prevent an increase in property tax burdens, the fair market value ratio used to calculate the tax base (officially assessed value × fair market value ratio) will remain unchanged. The ministry stated that for single-homeowners, the ratio will be maintained at 43%–45%, consistent with 2025 levels.
In addition, the exemption threshold for acquisition tax surcharges on employee rental housing acquired by companies for welfare purposes will vary by region. The current 60㎡ threshold will remain in the Seoul metropolitan area, while it will be expanded to 85㎡ in non-metropolitan regions and designated population-declining areas within the metro region (including Yeoncheon and Gapyeong in Gyeonggi Province, and Ongjin and Ganghwa in Incheon). This measure aims to reduce housing costs for employees working outside major urban centers and support stable family living.
Other measures include the introduction of separate property tax treatment for land used in agricultural and fisheries distribution projects operated by local public corporations for three years through 2028, aimed at stabilizing prices. Additionally, separate taxation for land used by district energy providers and for airport facilities operated by Korea Airports Corporation will be extended for another three years through 2028, considering the burden of rising energy prices amid geopolitical tensions.
The revised regulations will undergo a public consultation period through May 15, followed by review by the Ministry of Government Legislation and deliberation at a Cabinet meeting, before taking effect on June 1. Further details will be available in the official gazette and the public participation legislation portal.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
