# South Korean corporate tax exemption trends

> Live situation record from CLSTR: https://clstr.news/situations/south-korean-corporate-tax-exemption-trends
> Updated: 2026-08-27T03:00:00.000Z. Sources: 4. Developments: 2.

A 2025 tax expenditure settlement report revealed that tax exemptions for major South Korean conglomerates surged by 81.8% to 4.27 trillion won, up from 2.35 trillion won in 2024. This growth was primarily driven by increased utilization of R&D tax credits and integrated investment tax credits, alongside a 136% increase in assets exempted through family business inheritance deductions.

In comparison, tax exemptions for small and medium-sized enterprises grew by only 4.3%. In response to these trends, the government has announced a 2026 tax reform plan intended to reorganize tax expenditure items and tighten requirements for family business inheritance deductions, aiming for a reduction of approximately 2.5 trillion won.

## Timeline

### 2026-08-27: South Korea early-disburses 2.87 trillion won in tax credits

South Korea's National Tax Service is early-disbursing 2.87 trillion won in Earned Income and Child Tax Credits to 2.7 million households.

2 sources. https://clstr.news/cluster/south-korea-early-disburses-287-trillion-won-in-tax-credits

### 2026-08-22: South Korean conglomerate tax exemptions surge 81.8%

Tax exemptions for South Korean conglomerates surged by 81.8% last year to 4.27 trillion won, significantly outpacing the 4.3% growth seen in exemptions for small and medium-sized enterprises.

3 sources. https://clstr.news/cluster/south-korean-conglomerate-tax-exemptions-surge-818

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Cite as: South Korean corporate tax exemption trends. CLSTR, https://clstr.news/situations/south-korean-corporate-tax-exemption-trends