We usually think of taxes as money we pay — but the government also gives cash back. Korea's Earned Income Tax Credit (EITC, 근로장려금) and Child Tax Credit (자녀장려금) support low-income working households, and many eligible people miss out simply by not knowing. 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.
Child credit — up to 1M won per child
- Who — combined spousal income under 70M won with a child under 18.
- Amount — 0.5M–1M won per child, by income.
- Its income cap is higher than EITC's, so you may qualify for it even if not for EITC.
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.
FAQ
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). See also dependent deductions and the tax calendar. The guide to unclaimed refunds covers money you may already be owed.
