South Korea's proposed income threshold for claiming a dependent in year-end tax settlement would rise from 1 million to 3 million won under a government tax reform plan. The proposed higher limit concerns income earned in 2027, not the 2026 income that taxpayers will settle in early 2027.
The existing 1-million-won income test therefore remains relevant for the upcoming settlement, and other eligibility rules still apply. Because the increase is part of a proposed reform, taxpayers should check the final legislation before relying on the higher threshold.