Article 100-32 (Tax Special Provisions for Promotion of Investment, Dividends, and Win-Win Cooperation)

A domestic corporation under paragraph 1 shall report to the head of the tax office having jurisdiction over its place of taxation, within three months (or four months from the end of the month in which each consolidated business year ends, if filing a corporate tax return and tax amount report under Article 76-17 of the 「Corporate Tax Act」) from the end of the month in which each business year ends, the amount calculated by selecting one of the following methods (where the calculated amount is positive, it is called "undistributed income," and where the calculated amount is negative, the amount without the negative sign is called "excess reinvestment amount." The same applies hereafter in this Article), in accordance with Presidential Decree. <Amended by Act No. 17764, Dec. 29, 2020, Act No. 18616, Dec. 31, 2022, Act No. 19173, Dec. 23, 2025> 1. A method of deducting the sum of the amounts in the following sub-items from the amount calculated by multiplying the income of the relevant business year [meaning the business year ending Dec. 31, 2028 (or the business year ending Dec. 31, 2030, when applying paragraph 6), which is prescribed by Presidential Decree (hereinafter referred to as "corporate income" in this Article) by a ratio prescribed by Presidential Decree within the range of 65/100 to 85/100: a. The total amount invested in assets prescribed by Presidential Decree, such as machinery and equipment. b. The total amount of dividends paid in the relevant business year, as prescribed by Presidential Decree. c. The total amount of wage increase for regular employees (hereinafter referred to as "regular employees" in this Article) in the relevant business year, as prescribed by Presidential Decree, if any, calculated as follows: 1) Where the wages of regular employees have increased in the relevant business year: a) Where the number of regular employees in the relevant business year has not increased compared to the number of regular employees in the preceding business year: The wage increase amount for regular employees. b) Where the number of regular employees in the relevant business year has increased compared to the number of regular employees in the preceding business year: The sum of the amount obtained by multiplying the wage increase amount for existing regular employees by 150/100 and the amount obtained by multiplying the wage increase amount for new regular employees by 200/100. 2) Where the number of young regular employees (hereinafter referred to as "young regular employees" in this Article) in the relevant business year has increased compared to the number of young regular employees in the preceding business year: The wage increase amount for young regular employees in the relevant business year. 3) Where there are converted regular employees who meet the requirements prescribed by Presidential Decree, such as employment period and employment type, in the relevant business year (hereinafter referred to as "converted regular employees" in this Article): The wage increase amount for converted regular employees (excluding young regular employees). d. The amount obtained by multiplying amounts prescribed by Presidential Decree, such as expenses incurred for win-win cooperation under Article 2 (3) of the 「Act on Promotion of Win-Win Cooperation between Large Enterprises and Small and Medium Enterprises」, by 300/100. 2. A method of deducting the sum of the amounts in sub-items of subparagraph 1 (excluding the total investment amount in assets under sub-item a) from the amount calculated by multiplying corporate income by a ratio prescribed by Presidential Decree within the range of 20/100 to 40/100.

If a domestic corporation under paragraph 1 has not filed a report pursuant to paragraph 2, it shall be deemed to have selected and reported one of the methods in subparagraphs 1 and 2 of paragraph 2, and paragraph 3 shall apply accordingly, in accordance with Presidential Decree. <Amended by Act No. 18616, Dec. 31, 2022>

If a subsequent reinvestment reserve has been set aside pursuant to paragraph 5, the amount calculated according to the following formula (considered zero if negative) shall be paid in addition to the corporate tax for the business year after the next business year. <Amended by Act No. 18426, Dec. 28, 2021, Act No. 18616, Dec. 31, 2022> (Subsequent reinvestment reserve - Excess reinvestment amount for the relevant business year calculated pursuant to paragraph 2) × 20/100

In cases prescribed by Presidential Decree, such as when a domestic corporation under paragraph 1 disposes of assets under subparagraph 1 (a) of paragraph 2, it shall pay, in addition to the tax, an amount equivalent to interest calculated in accordance with Presidential Decree, for the tax that was not paid due to the deduction of the investment amount in such assets under subparagraph 1 of paragraph 2.

When applying paragraphs 1 through 9, the calculation method for the total investment amount, wage increase amount, number of regular employees, or number of young regular employees, and other necessary matters shall be prescribed by Presidential Decree.