Article 91-14 (Tax Exemption for Jaehyeong Savings)

If a resident subscribes to savings that meet all of the following requirements (hereinafter referred to as "Jaehyeong Savings" in this Article) by December 31, 2015, income tax shall not be imposed on the interest income and dividend income generated from such savings. <Amended by Act No. 141, Jan. 1, 2014, Act No. 15882, Dec. 23, 2014, Act No. 18655, Dec. 28, 2021, Act No. 19938, Dec. 31, 2024> 1. The subscriber to Jaehyeong Savings shall be a resident falling under any of the following subparagraphs at the time of subscription: a. Where the total salary for the immediately preceding taxation period is 50 million won or less (limited to cases where there is only earned income in the immediately preceding taxation period, or earned income and global income not subject to aggregation in the global income taxation base). b. Where the global income amount aggregated in the global income taxation base for the immediately preceding taxation period is 35 million won or less, excluding residents falling under subparagraph a (limited to cases where there is earned income or business income in the immediately preceding taxation period). 2. The savings shall be installment savings handled by a financial company, etc. falling under any of the subparagraphs of Article 2 (1) of the 「Act on Real Name Financial Transactions and Secrecy」 (hereinafter referred to as "financial company, etc." in this Article), and shall be transacted through a passbook indicating that it is Jaehyeong Savings for which income tax is exempted. 3. The contract period shall be 7 years. 4. Payments shall be made within 3 million won per quarter per person (referring to the total amount of all Jaehyeong Savings subscribed to by the resident). In this case, savings for a quarter subsequent to the current quarter cannot be paid in advance, nor can payments for a prior quarter be made later; however, in the case of insurance or mutual aid, savings for the intervening period can be paid before the expiration of 2 years and 2 months from the end of the month in which the final payment date falls.

If a resident who has entered into a contract for Jaehyeong Savings withdraws the principal or interest, etc. from such savings, or terminates or transfers the contract to a third party before the date specified in each subparagraph of the following numbers, the financial company, etc. handling such savings (hereinafter referred to as "savings handling institution" in this Article) shall recover the amount of tax exempted from income tax and dividend income, pursuant to Article 146-2. However, this shall not apply if the savings contract is terminated due to the death or overseas relocation of the saver, or for reasons prescribed by Presidential Decree. <Amended by Act No. 15882, Dec. 23, 2014, Act No. 17859, Dec. 29, 2020, Act No. 18655, Dec. 28, 2021, Act No. 19938, Dec. 31, 2024> 1. For residents falling under any of the following subparagraphs at the time of subscription: The date 3 years from the date of initially entering into the contract. a. Residents falling under Article 1 (1) a, whose total salary for the immediately preceding taxation period is 25 million won or less. b. Residents falling under Article 1 (1) b, whose global income amount aggregated in the global income taxation base for the immediately preceding taxation period is 16 million won or less. c. Youth (excluding residents falling under subparagraphs a and b) working for a company prescribed by Presidential Decree, which is a small and medium-sized enterprise (including non-profit corporations) as defined in Article 2 of the 「Framework Act on Small and Medium Enterprises」, as prescribed by Presidential Decree. 2. For residents other than those in subparagraph 1: The date 7 years from the date of initially entering into the contract.

Deleted. <Act No. 17859, Dec. 29, 2020>

If a savings handling institution is notified, pursuant to Article 6, that a subscriber to Jaehyeong Savings does not meet the requirements of Article 1 (1), the Jaehyeong Savings shall be deemed to have been terminated on the date of receiving such notification, and the savings handling institution shall notify the subscriber to Jaehyeong Savings accordingly. In this case, Article 3 shall not apply. <Amended by Act No. 17859, Dec. 29, 2020>