[Korean Law Insights] Re Migration to Korea: Start by Sorting Out Your Taxes
Updated: Aug 10
[Published on August 5, 2026 edition of the "Korean Law Insights" column in the Korea Daily’s Economic Expert Section]
National Tax Service of Korea Begins Consultations for Returnees Starting in July
Determining Tax Residency Status and Reviewing Obligations in Both Countries Is Essential, Depending on Your Stay Plans
For Koreans who have lived in the United States for many years and are considering settling in Korea after retirement, taxes deserve attention just as early as housing and health insurance.
If you have savings, stocks, real estate, or pension assets accumulated in the United States and then move your center of living to Korea, the scope of taxation and reporting obligations can change depending on exactly when you become a resident under Korean tax law.
To ease this uncertainty, Korea's National Tax Service began formally offering one on one online tax consultations in July 2026 for overseas Koreans hoping to return to Korea. The program is aimed at overseas nationals who have lived abroad for an extended period and are planning to return. Applicants can download the consultation request form from the National Tax Service website (nts.go.kr), fill it out, and submit it by email (uturn2026@nts.go.kr) or fax (+82 503 110 9071) to receive a consultation by video call or phone.
Anonymous consultations, without providing a name, age, or address, are also available. The scope of consultation covers residency determination, inheritance, gift, and transfer taxes on overseas assets, reporting of foreign financial accounts, liquidation of overseas corporations, and domestic tax administrative procedures. Questions about the consultation process or how to fill out the application can be directed to +82 44 204 2813 through 2815.
The first thing to check is the point at which one becomes a resident under tax law. This is determined comprehensively based on objective living circumstances such as family members who share a livelihood in Korea, occupation, and assets. Therefore, if you return to Korea permanently with your family and establish your center of living domestically, you may become a resident even before the commonly cited 183 day threshold.
Some sources stir up anxiety by suggesting that remigrating to Korea and purchasing a home will immediately make you a resident, subjecting you to the same taxes in both Korea and the United States, and eventually exposing you to an inheritance tax "bombshell." However, this is an overly simplified explanation.
Owning a home in Korea is only one factor in determining residency status; the mere fact of purchasing a home does not automatically make you a resident. Conversely, if your actual center of living has moved to Korea, you may become a resident regardless of whether you purchased a home.
Once you become a resident, foreign source income is, in principle, included in Korea's tax base. However, the fact that reporting obligations may arise in both Korea and the United States does not necessarily mean the same income will be taxed twice.
US citizens and permanent residents are, in principle, required to report worldwide income to the United States even after settling in Korea, but if certain requirements are met, double taxation can be adjusted through mechanisms such as the foreign tax credit. In addition, capital gains on overseas real estate or stocks may be subject to separate taxation requirements in Korea depending on the type of asset and the length of residency.
Therefore, it is not advisable to assume double taxation and heighten anxiety simply because reporting is required in both countries.
The National Tax Service's consultation program is available to overseas nationals who hold Korean citizenship, and the results of the consultation do not carry the legal effect of an authoritative interpretation.
Nevertheless, the fact that the National Tax Service has established a separate, individualized consultation program shows that tax issues related to remigration are difficult to judge in a uniform way.
Rather than relying on vague anxiety or sweeping generalizations, individuals should seek a specific review from legal and tax professionals in both Korea and the United States, based on their own nationality, family circumstances, plans for length of stay, and asset composition.
▶Inquiries: (424)218-6562
Jin Hee Lee/K-Law Consulting Korean Attorney
[Reference link in original Korean]
