Korea’s child tax credit comes in two parts. One is paid every year by the number of children aged 13 or over (250,000 won for one, 550,000 for two, 400,000 more for each beyond two); the other is paid once in the year a child is born or adopted (300,000 won for a first child, 500,000 for a second, 700,000 for a third or later). We read article 59-2 of the Income Tax Act as written and worked out the amounts by number of children.
1. Children aged 13 or over: 250,000 won for one, 550,000 for two, 950,000 for three. From three, add 400,000 won per child beyond two to 550,000. Grandchildren count too (para. 1).
2. In the year of birth or adoption: 300,000, 500,000 or 700,000 won. It depends on whether the child born or adopted that year is the first, second, or third or later (para. 3).
3. It comes off the tax, not the income. It is “deducted from calculated tax,” so the tax bill falls by the full amount.
The article — art. 59-2
Paragraph 1 For children who are basic-deduction dependants of a resident with global income (including adopted and foster children) and grandchildren, aged 13 or over, the following shall be deducted from calculated tax. <amended … 21 Apr 2026>
1. One: 250,000 won a year; 2. Two: 550,000 won; 3. Three or more: 550,000 won plus 400,000 won for each beyond two
Paragraph 3 Where a qualifying child is born or registered as adopted in the tax year … 1. first child: 300,000 won; 2. second: 500,000 won; 3. third or later: 700,000 won
Two conditions: the child must be a basic-deduction dependant, and for paragraph 1 must be 13 or over. The age and income tests for dependants are in our dependant deduction article.
By number of children — para. 1
| Children 13 or over | Credit | Working (10,000s) |
|---|---|---|
| 1 | 250,000 won | Item 1 |
| 2 | 550,000 won | Item 2 |
| 3 | 950,000 won | 55 + 40 |
| 4 | 1,350,000 won | 55 + 40 × 2 |
| 5 | 1,750,000 won | 55 + 40 × 3 |
From three children on, the figures are our arithmetic from the statutory formula. The second child adds 300,000 won (55 − 25), each later child 400,000.
Year of birth or adoption — para. 3
| Child born or adopted that year | Credit | Basis |
|---|---|---|
| First | 300,000 won | Para. 3 item 1 |
| Second | 500,000 won | Para. 3 item 2 |
| Third or later | 700,000 won | Para. 3 item 3 |
Paragraph 3 has no age condition. A newborn does not fall under paragraph 1 (13 or over) but earns the one-off credit that year. A family with children aged 14 and 15 that has a third child gets 550,000 won under paragraph 1 plus 700,000 under paragraph 3: 1,250,000 won (our arithmetic).
Easy to miss
- Children under 13 are outside paragraph 1. The article says “aged 13 or over” (amended 21 April 2026); much older material still shows the earlier threshold.
- It is one or the other with the child tax benefit. Article 100-30(2) of the Restriction of Special Taxation Act bars taking both the child benefit (jangnyeogeum) and this credit — see earned income and child tax credits.
- Only one parent. As the child must be that person’s basic-deduction dependant, the parent who claims the child reads as the one who takes the credit (our reading).
The government’s 2026 tax reform bill would abolish the birth and adoption credit (300,000 / 500,000 / 700,000 won) in favour of direct spending. It needs to pass the National Assembly, so this article states current law — see our guide to the 2026 tax reform bill.
Checklist
- ☐ Is the child your basic-deduction dependant?
- ☐ How many are 13 or over? 250,000 · 550,000 · 950,000 won
- ☐ A birth or adoption this year? 300,000 · 500,000 · 700,000 won
- ☐ Applied for the child tax benefit? Check the overlap
Questions that remain
Do grandchildren count?
Paragraph 1 covers “children … and grandchildren, aged 13 or over.” A grandchild who is your basic-deduction dependant is included.
When is age 13 measured?
Article 59-2 itself does not give a reference date. We did not settle it from this article alone, so if your child is near the line, check with payroll or Hometax guidance.
Sources
- Income Tax Act [in force 1 Jul 2026] [Act No. 21221] — original text (checked 2 October 2026). Article 59-2(1) (13 or over; 250,000, 550,000 and 400,000 won), (3) (300,000, 500,000 and 700,000 won) and (4).
- Our own working. 950,000, 1,350,000 and 1,750,000 won and the 1,250,000 won example are our arithmetic.
Where to check further
- The whole settlement — year-end tax calculator.
- Dependant tests — dependant deduction.
Written on 2 October 2026. The article is from the National Law Information Center; the arithmetic in the tables is ours.
