We usually think of taxes as money we pay — but the government also gives cash back. Korea's Earned Income Tax Credit (근로장려금) and Child Tax Credit (자녀장려금) support low-income working households.
1. How much. The earned income credit pays up to ₩1.65M for a single-person household, ₩2.85M single-earner, ₩3.30M dual-earner, and the child credit up to ₩1M per child — paid as cash, not as a deduction.
2. What people miss. Assets are tested, not just income — household assets must be under ₩240 million, and between ₩170 million and ₩240 million only 50% of the calculated amount is paid. Plenty of people clear the income test and fail here.
3. What to do. The regular application window is May, with payment usually in August or September. Miss it and you have six months to file late, at a 5% reduction. Apply on Hometax/Sontax or by phone (1544-9944).
On 3 August 2026 a bill was published that raises both the income limits and the payments. Income limits would go ₩22m → ₩26m (single), ₩32m → ₩37m (single-earner), ₩44m → ₩52m (dual-earner), and maximum payments ₩1.65m → ₩1.8m / ₩2.85m → ₩3.1m / ₩3.3m → ₩3.6m. For dual-earner households the plateau widens from ₩8–17m to ₩8–18m. Still a government bill, with no start date in the release — everything below is current law. See our guide to the 2026 tax reform bill.
Here are the 2026 rules, amounts, and how to apply.
Two credits, what's the difference
| Item | EITC (근로장려금) | Child credit (자녀장려금) |
|---|---|---|
| Purpose | Support low-income workers | Support child-rearing |
| Who | Single/single-earner/dual-earner | Household with child under 18 |
| Max | 1.65M–3.3M won by household | Up to 1M won per child |
| Both | You can receive both if eligible | |
EITC — how much, who
| Household | Total income under | Max payment |
|---|---|---|
| Single | 22M won | 1.65M won |
| Single-earner | 32M won | 2.85M won |
| Dual-earner | 44M won | 3.3M won |
Payments rise at very low incomes then taper off, so these are maximums.
The household test is about the spouse's earnings, not about who works. Article 100-3(5) of the Restriction of Special Taxation Act makes it one earner where the spouse's earnings counted are below 3m won, and two earners only where the resident and the spouse each reach 3m won — a spouse who earned 2.5m won still leaves a one-earner household. Single means no spouse, no dependent child and no parent aged 70 or over. Set out in household type and the two meanings of income.
Child credit — up to 1M won per child
- Who — a dependent child, combined annual total income of the resident and spouse below 70M won, and household assets below 240M won (art. 100-28(1)).
- Amount — 0.5M–1M won per child. The statute sets out the arithmetic (art. 100-29(1)).
- Its income cap is higher than EITC's, so you may qualify for it even if not for EITC.
| Household | Earnings counted | Per child |
|---|---|---|
| One earner | below 21M won | 1M won |
| 21M to 70M won | 1M − (earnings − 21M) × 50/4,900 | |
| Two earners | below 25M won | 1M won |
| 25M to 70M won | 1M − (earnings − 25M) × 50/4,500 | |
| Act art. 100-29(1). A single household has no child credit — with a dependent child it is not a single household by definition. | ||
The amount actually paid comes from Enforcement Decree table 11-2, the child credit table (art. 100-29(2)), not from the formula. Its bands are 500,000 won wide, and the rule behind it is the one the earned income table uses — apply the formula at whichever end of the band gives the larger figure, then round up to the nearest 1,000 won. Rebuilt that way, the figures matched all 21 rows we checked.
The table's last row runs 69,500,000 to 69,999,990 and pays 506,000 won per child. The formula converges on 500,000 at 70M, but the figure where the table stops is 506,000. And eligibility requires income below 70M, so at that line it becomes nothing — it does not taper to zero the way the earned income credit does. With two children, 1,012,000 won goes at once.
It is either this or the child tax credit, not both. Art. 100-30(2) provides that the child credit "shall not be applied in duplication with the child tax credit under article 59-2 of the Income Tax Act". If you already claim the child tax credit at year-end settlement, the two need comparing.
The minimum works differently too. Reduced to below 30,000 won, it is determined as 30,000; where the one-earner item (a) calculation is below 15,000 won, no credit is determined (art. 100-31(2)). The earned income credit's 100,000-won rising-band guarantee does not apply here.
The asset reduction is the same — halved at 170M won. The table's own note says so: where household assets reach 170m won, the credit is 50% of the figure in the table.
The two-earner column reads "not applicable" below 6M won of earnings counted — the same reason as the earned income credit (3M won from each spouse).
Shared requirements — income + assets
| Requirement | Detail |
|---|---|
| Income | Within the household caps above |
| Assets | Household assets under 240M won |
| Reduction | 170M–240M won → only 50% paid |
Assets include housing, jeonse deposits, land, savings, and cars — high assets can disqualify or halve the credit even with low income.
When to apply — May matters
- Regular filing — every May; usually paid Aug–Sep.
- Semi-annual — wage-only households can also file in Mar/Sep.
- Late filing — possible for six months after the regular window, but reduced 5%.
- How — Hometax/Sontax, ARS, or the number on your notice.
Watch for smishing — never tap links in “tax refund” texts; go to Hometax directly or call 126.
Example: single-earner with two kids
A single-earner household with two children under 18 (income 30M, assets 150M): ① within the 32M single-earner cap → EITC eligible; ② under 70M combined → child credit for both kids (up to 2M); ③ assets under 170M → no reduction; ④ file together in May, paid Aug–Sep. Missing it means leaving millions of won unclaimed.
Sticking points before you apply
Can I get both?
Yes — if eligible for each. The child credit's higher income cap means you may get it even when EITC doesn't apply.
Do part-timers/freelancers qualify?
Yes — business income counts too. Only income/asset limits matter (income tax calculator).
Missed the deadline?
Late filing is possible but reduced 5%, and payment slips to the end of the following January instead of late August — still better than nothing.
The asset test catches people out
Most applicants check the income ceiling, see they are under it, and stop reading. The asset test is what actually disqualifies people. Household assets are measured on 1 June, and the band matters as much as the ceiling: under 170 million won pays in full, between 170 and 240 million won pays half of the calculated amount, and 240 million won or more receives nothing. Assets here mean the household total, not yours alone, and property counts at official valuation rather than what you paid. Check both tests before you count on the money.
Sources and where to check
- Bokjiro (Ministry of Health and Welfare) — guide to the earned income and child tax credits. Income ceilings of 22M / 32M / 44M won by household type, payments from 30,000 won up to 1.65M / 2.85M / 3.30M won, and assets between 170M and 240M won receiving only half.
- Seoul Labor Rights Center — notice on the regular May application. The child credit ceiling of 70M won combined, up to 1M won per child, and the sentence stating that late applications are reduced by 5%.
- Bokjiro — on applying after the deadline. The late window runs six months from the day after the regular period, and payment lands at the end of the following January.
Written as of July 2026. Income and asset tests, payment amounts and the reduction rate come from the Bokjiro and Seoul Labor Rights Center pages above. The Government24 page on these credits still carries older figures, so it was not used as a source. Actual amounts are calculated from your own income, assets and household. Confirm on Hometax or the tax helpline (126). To put a number on it, see the calculator; the amount is set by Enforcement Decree table 11, not by the formula in the Act, as explained in formula versus table. See also dependent deductions and the tax calendar. The guide to unclaimed refunds covers money you may already be owed. With children, see also the child bonus calculator — the two credits can be received together.
