ARTICLE 100-32 (TAXATION SPECIAL CASES FOR PROMOTING INVESTMENT, DIVIDENDS, AND WIN-WIN COOPERATION)

A domestic corporation under paragraph (1) shall report to the head of the tax office having jurisdiction over the place of taxation, within three months from the last day of the month in which the end of each business year falls (four months from the last day of the month in which the end of each consolidated business year falls, in the case of reporting the tax base and tax amount of corporate tax under Article 76-17 of the 「Corporate Tax Act」), the amount calculated by selecting any one of the following methods (if the calculated amount is positive, it is called 'undistributed income,' and if the calculated amount is negative, it is called 'excess reinvestment amount' after removing the negative sign. The same shall apply hereinafter in this Article) according to the Presidential Decree. <Amended by Act No. 14556, Dec. 29, 2020, Act No. 15737, Dec. 31, 2022, Act No. 19150, Dec. 23, 2025> 1. A method of deducting the sum of the amounts under the following sub-items from the amount calculated by multiplying the income prescribed by the Presidential Decree (hereinafter referred to as 'corporate income' in this Article) of the current business year [meaning the business year ending on December 31, 2028 (or the business year ending on December 31, 2030, when applying paragraph (6))] by a ratio prescribed by the Presidential Decree within the range of 65/100 to 85/100: a. The total amount of investment in assets prescribed by the Presidential Decree, such as machinery and equipment. b. The total amount of dividends paid in the current business year as prescribed by the Presidential Decree. c. The amount obtained by summing up the following when there is an increase in wages for regular employees (hereinafter referred to as 'regular employees' in this Article) as prescribed by the Presidential Decree in the current business year: 1) When wages for regular employees have increased in the current business year: a) Where the number of regular employees in the current business year has not increased compared to the number of regular employees in the immediately preceding business year: The amount of wage increase for regular employees. b) Where the number of regular employees in the current business year has increased compared to the number of regular employees in the immediately 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) prescribed by the Presidential Decree has increased in the current business year compared to the number of young regular employees in the immediately preceding business year: The amount of wage increase for young regular employees in the current business year. 3) Where there are full-time conversion employees (hereinafter referred to as 'full-time conversion employees' in this Article) who meet the requirements prescribed by the Presidential Decree, such as working period and employment type, in the current business year: The amount of wage increase for full-time conversion employees (excluding young regular employees). d. The amount obtained by multiplying the amount prescribed by the 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 and Small Enterprises」, by 300/100. 2. A method of deducting the sum of amounts in each sub-item of subparagraph 1 (excluding the total investment amount in assets under sub-item (a)) from the amount calculated by multiplying the corporate income by a ratio prescribed by the Presidential Decree within the range of 20/100 to 40/100.

If a domestic corporation under paragraph (1) does not file a report under paragraph (2), it shall be deemed to have selected and reported one of the methods under paragraph (2) according to the Presidential Decree, and paragraph (3) shall apply. <Amended by Act No. 15737, Dec. 31, 2022>

If a next reinvestment reserve is established under paragraph (5), the amount calculated according to the following formula (considered zero if negative) shall be paid in addition to the corporate tax of the business year after the next business year. <Amended by Act No. 15337, Dec. 28, 2021, Act No. 15737, Dec. 31, 2022> (Next reinvestment reserve - Excess reinvestment amount calculated under paragraph (2) for the current business year) × 20/100

In cases where a domestic corporation under paragraph (1) disposes of assets under subparagraph 1 (a) of paragraph (2), etc., as prescribed by the Presidential Decree, it shall pay, in addition to the tax that was not paid due to the deduction of the investment amount in such assets under subparagraph 1 of paragraph (2), an amount equivalent to interest calculated according to the Presidential Decree. <Amended by Act No. 15737, Dec. 31, 2022>

When applying paragraphs (1) through (9), the calculation methods 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 the Presidential Decree.