Article 26-3 (Scope of Dividend Income)

The phrase "profits from derivative-linked securities or derivative-linked bonds prescribed by Presidential Decree" in Article 17 (1) 5-2 of the Act refers to profits falling under any of the following subparagraphs. <Newly added 2024.12.31> 1. Profits arising from derivative-linked securities. Provided, That profits arising from securities or certificates representing the right to enter into a transaction to buy or sell stocks or to receive or pay money in accordance with a predetermined method linked to the price of specific stocks or the fluctuation of stock price indices traded on a stock market or a similar market abroad, at the discretion of one of the parties, shall be excluded. 2. Profits arising from trading listed equity securities through inter-account transfer, change of account name, or physical transfer of listed equity securities. Provided, That profits arising from trading listed equity securities whose purpose is to track the changes in stock prices solely based on the stock prices traded on the stock market, through inter-account transfer, change of account name, and physical transfer of listed equity securities, shall be excluded. 3. Profits arising from corporate bonds under Article 469 (2) 3 of the Commercial Act.

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

The phrase "when combined according to Presidential Decree" in Article 17 (1) 10 of the Act refers to cases where an individual trades a product that generates dividend income (hereinafter referred to as "dividend-bearing product" in this paragraph) together with a derivative product, and falls under any of the following subparagraphs. <Amended 2017.2.3> 1. When operated as substantially a single product by meeting all of the following requirements: a. The transaction of the 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 property of value calculated based on all or 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 on these, of the dividend income, etc. c. The financial company, etc., referred to in subparagraph a shall pay the dividend income, etc., from the dividend-bearing product and profits from the derivative product. 2. When profits 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 point in time are confirmed by meeting all of the following requirements: a. The transaction of the dividend-bearing product handled by the 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, even if the transaction of the dividend-bearing product and the derivative product contract are conducted separately through two or more financial companies, etc., the dividend-bearing product is pledged as collateral to perform the derivative product contract, or it is conducted through a money 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 property of value calculated based on the dividend income, etc., of the dividend-bearing product, or the price, interest rate, index, unit, or index based on these, of the dividend income, etc. c. The confirmed profits from the derivative product shall be greater than the dividend income from the dividend-bearing product.

The amount equivalent to dividends generated from securities (excluding bonds, etc.; hereinafter the same applies in this paragraph) that a resident receives from the buyer of the securities by the repurchase date, after selling the securities under the condition of repurchasing them at a predetermined repurchase interest rate, shall be included in the dividend income under Article 17 (1) 9 of the Act. <Newly added 2025.2.28>

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

Profits from fractional investment products shall be the amount remaining after deducting various fees, commissions, etc., as prescribed by the Minister of Economy and Finance, and the method of calculating the tax base for profits from fractional investment products shall be prescribed by the Minister of Economy and Finance. <Newly added 2025.2.28, 2025.12.30>

Profits from integrated investment accounts shall be the amount remaining after deducting various fees, commissions, etc., and the method of calculating the tax base for these profits shall be prescribed by the Minister of Economy and Finance. <Newly added 2026.2.27>