A non-resident's interest income from a Korean bank deposit is withheld at 20% (or the treaty rate, typically 10–15%, if one applies). Dividend income from Korean listed shares is likewise withheld at 20% (typically around 15% under a treaty).
Transfer fees a Korean professional sports club pays in connection with a foreign athlete's transfer are also subject to withholding, classified as either personal service income or other income — the exact classification and rate depend on the contract structure (paid to the athlete directly vs. through an agency), so individual review is needed.
Financial income withholding checkpoints
Tell your bank you're a non-resident up front
If mistakenly registered as a resident when opening an account, interest income may be withheld at the resident rate (15.4%, ignoring any treaty). Accurately informing the bank of your non-resident status and any applicable treaty ensures the correct rate is applied from the start.
Frequently Asked Questions
Related Topics
Withholding Tax Rates on Korean-Source Income
A quick-reference table of statutory withholding rates for a non-resident's interest, dividend, royalty, and personal-service income.
Countries With a Korea Tax Treaty and Their Limited Rates
Korea's roughly 98 tax treaty partners, and how to look up the limited rate for interest, dividend, and royalty income by country.