MODIFIED BY THE PRESIDENTIAL DECREE No. 24936, DEC. 29, 2020

. Interest income and dividend income from long-term housing savings (hereinafter referred to as "long-term housing savings" in this Article) that meet all the following requirements and were subscribed to by December 31, 2012, shall be exempt from income tax. 1. The eligible subscriber shall be a resident aged 18 or over, who, at the time of subscription, falls under any of the following categories: 　a. The head of a household that does not own a house, as prescribed by Presidential Decree (hereinafter referred to as "household" in this Article). 　b. The head of a household that owns only one house, which is a house with a standard market price (hereinafter referred to as "standard price" in this Article) of 50 million won or less under Article 99 (1) of the Income Tax Act, or a house with a scale not exceeding that prescribed by Presidential Decree (hereinafter referred to as "house of national housing scale" in this Article) with a standard price of 300 million won or less. 2. The savings shall meet the requirements prescribed by Presidential Decree, such as the savings deposit limit and contract period.

. For housing subscription comprehensive savings that meet all the following requirements (hereinafter referred to as "youth preferential housing subscription comprehensive savings" in this Article) subscribed to by December 31, 2028, income tax shall not be imposed on the aggregate interest income generated from such savings, up to 5 million won. In this case, the amount of deposits eligible for tax exemption shall be limited to an annual total of 6 million won, including amounts deposited in all financial institutions. <Newly inserted by 2018.12.24, 2021.12.28, 2022.12.31, 2023.12.31, 2024.12.31, 2025.12.23> 1. The eligible subscriber shall be a resident who falls under any of the following categories, is a youth as prescribed by Presidential Decree at the time of subscription, and is the head of a household, etc. of a household that does not own a house: 　a. An earned income earner whose total salary for the preceding tax period is 36 million won or less (limited to those who had only earned income or earned income and comprehensive income not subject to the comprehensive income tax base in the preceding tax period, excluding those with only non-taxable income). 　b. A person whose comprehensive income amount subject to the comprehensive income tax base for the preceding tax period is 26 million won or less (excluding those with earned income exceeding 36 million won for the preceding tax period and those with only non-taxable income). 2. The contract period shall be 2 years or more.

. If the sum of amounts deducted under paragraph ② and Article 52 (4) of the Income Tax Act exceeds 4 million won per year, the excess amount shall not be deducted from the earned income amount for that year. If the sum of amounts deducted under paragraphs ②, Article 52 (4) through (6) of the Income Tax Act exceeds 8 million won per year (if a long-term housing mortgage loan under Article 52 (5) of the Income Tax Act meets the requirements of each subparagraph of Article 52 (6), the respective deduction limit shall apply), the excess amount shall not be deducted from the earned income amount for that year. In this case, whether a person is the head of a household, etc. shall be determined as of the end of the tax period. <Amended by 2013.1.1, 2014.1.1, 2014.12.23, 2015.12.15, 2018.12.24, 2022.12.31, 2023.12.31, 2024.12.31>

. If a person who has received income deduction for housing subscription comprehensive savings falls under any of the following subparagraphs, the financial institution handling the savings shall recover from the savings amount at the time of termination an amount calculated by multiplying the cumulative amount of deposits made after the tax period for income deduction application (with an annual limit of 3 million won) by 6 percent (hereinafter referred to as "recovered tax" in this Article), and pay it to the head of the tax office having jurisdiction over withholding tax by the 10th of the month following the date of termination. Provided, that if the person who received income deduction proves that the tax amount reduced by such income deduction is less than the recovered tax, the amount equivalent to the actually reduced tax shall be recovered. <Amended by 2011.12.31, 2014.12.23, 2015.12.15, 2018.12.24, 2023.12.31, 2025.12.23> 1. If the savings contract is cancelled within 5 years from the date of subscription. Provided, that this shall not apply if the savings contract is cancelled due to the death of the saver, emigration overseas under the Overseas Emigration Act, or reasons prescribed by Presidential Decree. 2. If the person is selected for a house exceeding the national housing scale under construction with project plan approval under the Housing Act.

. The confirmation and management of eligible subscribers for long-term housing savings shall be as follows. <Amended by 2014.12.23, 2018.12.24> 1. The Commissioner of the National Tax Service shall confirm whether the subscriber to long-term housing savings met the requirements under paragraph ① at the time of subscription and notify the savings institution within the period prescribed by Presidential Decree. 2. The Commissioner of the National Tax Service shall confirm whether the subscriber to long-term housing savings met all the requirements under paragraph ① (excluding whether the house has a standard price of 300 million won or less) as of the end of the tax period in which the 7th anniversary of the contract date falls, and as of the end of each tax period thereafter that is 3 years later, and notify the savings institution. In this case, if any of the requirements under paragraph ① (excluding whether the house has a standard price of 300 million won or less) are not met, the savings shall be deemed to have been terminated on the date of receiving such notification, and paragraphs ⑥ and ⑧ shall not apply.