Article 26-3 (Scope of Dividend Income)

The "profit from derivative-linked securities or derivative-linked bonds as prescribed by Presidential Decree" under Article 17(1)5-2 of the Act shall mean profits falling under any of the following subparagraphs. <Newly enacted 2024.12.31> 1. Profit arising from derivative-linked securities. Provided, that profit arising from securities or certificates representing the right to establish a transaction to receive or deliver money or securities based on the fluctuation of the price of specific shares or stock price indices traded in a stock market or a similar market in a foreign country, at the discretion of one of the parties, shall be excluded. 2. Profit arising from trading listed index securities through inter-account transfer, change of account ownership, or physical transfer of listed index securities. Provided, that profit arising from trading listed index securities whose purpose is to track the changes of an index based solely on the price of shares traded in the stock market, through inter-account transfer, change of account ownership, and physical transfer of listed index securities, shall be excluded. 3. Profit arising from bonds under Article 469(2)3 of the Commercial Act.

Profits from listed index securities shall be the amount remaining after deducting various fees, commissions, etc., as prescribed by the 「Capital Markets and Financial Investment Business Act」, and the method of calculating the tax base for profits from listed index securities shall be determined by a decree of the Minister of Economy and Finance. <Newly enacted 2024.12.31, 2025.12.30>

"Cases where combined in accordance with Presidential Decree" under Article 17(1)10 of the Act shall mean cases where an individual trades a product that generates dividend income (hereinafter referred to as "dividend-bearing product" in this paragraph) and a derivative product together, and falls under any of the following subparagraphs. <Amended 2017.2.3> 1. Cases where they are operated as if they are a single product, satisfying all of the following requirements: a. The trading of a dividend-bearing product directly developed and sold by a financial company, etc., and the derivative product contract of the financial company, etc., shall be conducted through the financial company, etc. b. The derivative product shall be a contract to trade money or other assets with economic value calculated based on the whole or a part of the principal and dividend income of the dividend-bearing product (hereinafter referred to as "dividend income, etc." in this paragraph) or the price, interest rate, index, unit, or index based thereon of the dividend income, etc. c. The financial company, etc., as referred to in subparagraph a, shall pay the dividend income, etc., from the dividend-bearing product and the profit from the derivative product. 2. Cases where the profit from a derivative product (limited to cases falling under Article 166-2(1)1 of the 「Capital Markets and Financial Investment Business Act」) paid by a financial company, etc., at a specific future time is confirmed, satisfying all of the following requirements: a. The trading of a dividend-bearing product handled by a financial company, etc., and the derivative product contract of the financial company, etc., shall be conducted through the financial company, etc. (This includes cases where the trading of dividend-bearing products and the derivative product contract are conducted separately through two or more financial companies, etc., but are conducted through the pledge of dividend-bearing products for the performance of the derivative product contract or through a monetary trust under Article 103 of the 「Enforcement Decree of the Capital Markets and Financial Investment Business Act」). b. The derivative product shall be a contract to trade money or other assets with economic value calculated based on the dividend income, etc., of the dividend-bearing product or the price, interest rate, index, unit, or index based thereon of the dividend income, etc. c. The confirmed profit from the derivative product shall be greater than the dividend income from the dividend-bearing product.

An amount equivalent to dividends generated from securities (excluding bonds, etc.; hereinafter the same in this paragraph) paid by the buyer of securities until the repurchase date, received by a resident from the buyer of securities who sold the securities under the condition of repurchasing them at a pre-agreed interest rate based on the repurchase period, shall be included in dividend income under Article 17(1)9 of the Act. <Newly enacted 2025.2.28>

"Investment contract securities as prescribed by Presidential Decree" under Article 17(1)5-4 of the Act shall mean investment contract securities that satisfy all of the following requirements. <Newly enacted 2025.2.28, 2025.6.30, 2025.12.30> 1. Shall be offered or sold publicly in accordance with Article 119(1) of the 「Capital Markets and Financial Investment Business Act」. 2. The profits obtained as a result of a joint venture shall be distributed to the securities owner at least once a year. Provided, that this shall not apply to cases where the profits from the joint venture are less than zero or other grounds prescribed by a decree of the Minister of Economy and Finance.

Profit from fractional investment products shall be the amount remaining after deducting various fees, commissions, etc., as prescribed by a decree of the Minister of Economy and Finance, and the method of calculating the tax base for profit from fractional investment products shall be determined by a decree of the Minister of Economy and Finance. <Newly enacted 2025.2.28, 2025.12.30>

Profit from a comprehensive investment account shall be the amount remaining after deducting various fees, commissions, etc., and the method of calculating the tax base therefor shall be determined by a decree of the Minister of Economy and Finance. <Newly enacted 2026.2.27>