Introduction Are you working remotely or freelancing while living in South Korea? Understanding the Korean tax system can feel overwhelming, especially if you’re not fluent in Korean. This guide will walk you through the essential steps and requirements for paying taxes as a freelancer in Korea in 2025.
1. Do Freelancers in Korea Need to Pay Taxes? Yes. Whether you’re Korean or a foreigner working in Korea, if you’re earning income as a freelancer, you’re subject to Korean income tax laws.
Key points:
- You must report your income annually
- The Korean tax year is the same as the calendar year: Jan 1 – Dec 31
- Penalties apply if you don’t report or pay on time
2. What Kind of Taxes Are You Responsible For?
| Tax Type | Description |
|---|---|
| Income Tax | Paid on all freelance earnings |
| Resident Tax | Additional 10% on income tax total |
| VAT (if registered as a business) | Only applies if you invoice with VAT (most solo freelancers do not) |
3. How to Report Your Income
Option 1: Use Hometax.go.kr (Korea’s official tax platform)
- Available in Korean only
- Requires 공인인증서 (digital certificate)
Option 2: Hire a Korean tax accountant (세무사)
- Common among foreigners
- Cost: ₩100,000–₩300,000 for annual filing
4. When Are Taxes Due?
| Tax Type | Due Date |
| Income Tax Return | Every May (for previous year) |
| VAT (if applicable) | January & July (twice a year) |
5. Tax Tips for Freelancers
- Keep detailed records of income and expenses
- Save 15–20% of income for taxes
- Consider opening a separate bank account for freelance income
- Expenses like internet, software, coworking space may be deductible
6. Do I Need to Register a Business? If you’re a long-term freelancer, registering as a 개인사업자 (sole proprietor) can offer benefits:
- Allows issuing official tax invoices (세금계산서)
- Easier to apply for visas (like D-10 or F-2-7)
But it also comes with responsibilities:
- VAT filing
- Business registration at the tax office (국세청)
Conclusion Paying taxes as a freelancer in Korea isn’t as scary as it seems, especially when you know the basics. With the right preparation and maybe a little help from a local accountant, you can stay compliant and focus on growing your freelance career in Korea.