“My parents want to help — is there tax on that?” is one of the most searched questions in Korean personal finance, and most people know exactly one line about it: “up to 50 million won is fine.” Open the statute and it turns on who gave it, when, and whether you are a resident — and the marriage and childbirth deductions carry a second ceiling in their own provision.
1. How much is exempt. “50 million won” only holds once you attach a relationship and a period — spouse KRW 600m, lineal ascendant KRW 50m (KRW 20m for a minor), relatives within four degrees of blood or three of affinity KRW 10m. All of it aggregated over 10 years (Art. 53).
2. What gets missed. The marriage and childbirth deductions sit outside that 10-year aggregation — they come on top. But marriage and childbirth together are capped at KRW 100m (Art. 53-2(3)). And giving straight to a grandchild adds a 30% surcharge, 40% in some cases (Art. 57).
3. By when do I file. Within three months from the end of the month in which the gift was received (Art. 68(1)) — a zero liability is still a filing obligation.
How much can I receive, and from whom
Article 53 (Gift Property Deduction) Where a resident receives a gift from any of the following persons, the amount specified shall be deducted … In such cases, if the amount to be deducted plus the amount already deducted within the 10 years preceding the gift (excluding amounts deducted under Article 53-2) exceeds the specified amount, the excess shall not be deducted.
1. Gift from a spouse: KRW 600m
2. Gift from a lineal ascendant [including the ascendant’s spouse by legal marriage (excluding de facto marriage)]: KRW 50m. Provided, that where a minor receives a gift from a lineal ascendant, KRW 20m.
3. Gift from a lineal descendant (including the lineal descendant of a spouse by legal marriage): KRW 50m
4. Other than subparagraphs 2 and 3, gift from a blood relative within the fourth degree or an in-law within the third degree: KRW 10m
| Who gave it | 10-year aggregate deduction | Basis |
|---|---|---|
| Spouse | KRW 600m | Art. 53(1) |
| Ascendant → adult child or grandchild | KRW 50m | Art. 53(2) |
| Ascendant → minor | KRW 20m | |
| Descendant → parent or grandparent | KRW 50m | Art. 53(3) |
| Blood relative ≤ 4th degree, in-law ≤ 3rd | KRW 10m | Art. 53(4) |
The provision opens with “where a resident.” The whole deduction is written on that premise. If you have been living abroad for a long period, that is the first thing to check.
Subparagraph 4 is not “other relatives” but “a blood relative within the fourth degree or an in-law within the third.” Cousins are inside; sons- and daughters-in-law are in-laws and also inside. The statute fixes the range by degree of kinship.
The parenthesis in subparagraph 2 matters in practice — because it includes the ascendant’s spouse, a stepparent counts as a lineal ascendant. But de facto marriage is expressly excluded.
The 10 years work by aggregating “amounts already deducted within the 10 years preceding.” A fresh KRW 50m does not appear with every gift.
Put the four subparagraphs on one axis and you can see why “50m” never fits in a single line.
Do marriage and childbirth come on top
Article 53-2(1) Where a resident receives a gift from a lineal ascendant within two years before or after the marriage date (meaning the date of report shown on the marriage relation certificate), KRW 100m shall be deducted … separately from the deductions under paragraph (2) and Article 53(2).
(2) Where a resident receives a gift from a lineal ascendant within two years from a child’s date of birth (as shown on the birth report) or date of adoption (the adoption report date), KRW 100m shall be deducted … separately from the deductions under paragraph (1) and Article 53(2).
(3) Where the sum of the amounts deducted or to be deducted under paragraphs (1) and (2) exceeds KRW 100m, the excess shall not be deducted.
| Situation | Window | Deduction |
|---|---|---|
| Marriage | Within 2 years before or after the marriage report | KRW 100m (Art. 53-2(1)) |
| Birth or adoption | Within 2 years from birth or adoption report | KRW 100m (same art., (2)) |
| Both apply | — | KRW 100m combined (same art., (3)) |
| Relation to the basic deduction | — | separate from Art. 53(2) → an adult child reaches KRW 150m |
Because (1) and (2) each say “separately … KRW 100m,” it is easy to read them as 200m together. But (3) then states that where the sum exceeds KRW 100m the excess is not deducted. Use the full 100m at marriage and nothing is left at childbirth.
Against Article 53(2)’s KRW 50m, though, it really is separate. And because Article 53 excludes “amounts deducted under Article 53-2” from the 10-year aggregation, using this deduction does not eat into the basic 10-year allowance.
The statute defines “marriage date” — it is the date of report on the marriage relation certificate, not the wedding. Childbirth is likewise fixed to the birth report date or the adoption report date.
What if the marriage falls through
Article 53-2(5) Where, after taking the deduction under paragraph (1), an unavoidable cause prescribed by Presidential Decree, such as the death of the fiancé(e), arises and the gifted property is returned to the donor within three months from the last day of the month in which that cause arose, the gift shall be deemed never to have been made.
(6) Where a resident who took the deduction before marrying does not marry within two years of the gift and files a revised or late return by the day three months after the last day of the month containing the second anniversary, the penalties … shall not be imposed in whole or in part, but an amount equivalent to interest shall be added to the gift tax.
(7) … Where the marriage is annulled and a return is filed by the day three months after the last day of the month in which the judgment became final … (same treatment as paragraph (6)).
- You may receive it before the marriage — paragraph (1) says “two years before or after.” In exchange, the marriage must be reported within two years, and if it is not, paragraph (6) applies.
- Paragraphs (6) and (7) are the forgiving ones — file in time and the penalties are waived. But the interest equivalent still applies. It does not become as though nothing happened.
- Only paragraph (5) says “deemed never to have been made” — and only where an unavoidable cause such as the death of the fiancé(e) is combined with return within three months. The scope of those causes is left to the Decree, which we did not open.
- The general rules on revised returns are in our amended return guide.
| Situation | What the statute provides | Basis |
|---|---|---|
| Received before, married within 2 years | Deduction stands | Art. 53-2(1), “before or after” |
| No marriage within 2 years | File within 3 months: penalties waived, interest added | Same art., (6) |
| Marriage annulled | File within 3 months of the final judgment: same treatment | Same art., (7) |
| Death of the fiancé(e) or similar | Return within 3 months: deemed never to have been made | Same art., (5) |
Is money for living expenses exempt
Article 46 (Gift Property Exempt from Tax) Gift tax shall not be imposed on any of the following:
5. Disaster relief goods, medical expenses, the living expenses of a dependant, and education expenses recognised as such by social norms, and other similar items prescribed by Presidential Decree
The words “of a dependant” are in the text. This does not read as “living expenses are always exempt” but as a provision that builds a dependency relationship into its own wording. That is why money given to an adult child with sufficient income is the case that gets contested.
And “recognised … by social norms” qualifies the whole clause. No monetary threshold appears in the provision; the detail is delegated to the Decree, which we did not open, so this article states no amount.
What changes if it goes straight to a grandchild
Article 57(1) Where the recipient is a lineal descendant who is not the donor’s child, an amount equal to 30 percent of the computed gift tax (or 40 percent where the recipient is such a descendant and a minor, and the value of the gifted property exceeds KRW 2bn) shall be added. Provided, that this shall not apply where the donor’s nearest lineal descendant has died and that deceased person’s nearest lineal descendant receives the gift.
- The proviso matters — a grandchild whose parent has already died receives from a grandparent with no surcharge. The structure treats that as a generation that is missing, not one that is skipped.
- Over KRW 2bn to a minor grandchild is 40%. It is not a flat 30%.
- The surcharge is added to the computed gift tax — that is, after deductions.
Here is what the article 57 surcharge comes to, and what the proviso does to it.
Questions that keep splitting opinion
When is the return due?
Article 68(1) — “within three months from the last day of the month in which the gift was received.” Not three months from the gift date, which makes it longer in practice. A gift received on 5 March runs three months from 31 March.
If I am under the limit, do I still have to file?
The statute treats the filing duty and the deduction separately. Article 68(1) imposes the duty on “a person liable to pay gift tax,” while Article 53 works by subtracting from the taxable value. Whether being under the limit removes the duty cannot be settled from these two provisions alone, so we do not assert it. Because the 10-year history is at stake, it is safer to ask the tax office. Handing over a home with a jeonse deposit attached changes the arithmetic again — see gifts with debt attached.
What are the rates?
The rate table is an image inside the provision, so we could not read it again this time and this article states no rates. The inheritance side, which uses the same table, is in our inheritance tax guide.
What if it is a loan, not a gift?
Article 53 contains no rules on loan agreements, interest, or repayment records. The provisions on source-of-funds and presumption were not opened this time, so this article states no requirements.
What changes if the gift is real estate?
Receiving property as a gift triggers acquisition tax separately under the Local Tax Act, and on a later sale the acquisition value becomes an issue for capital gains tax. See our acquisition tax guide and capital gains tax guide.
The gift tax deduction does not reduce to one line about how much is fine. It turns on who gave it, how much you received in the last ten years — and for marriage and childbirth, on a second ceiling the statute puts on the sum.
Sources
- Ministry of Government Legislation, National Law Information Center — statutory text — Inheritance Tax and Gift Tax Act, Article 53 (Gift Property Deduction). Source of the four subparagraphs, the “where a resident” premise, the 10-year aggregation rule, and “excluding amounts deducted under Article 53-2.”
- Ministry of Government Legislation, National Law Information Center — statutory text — Same Act, Article 53-2 (Marriage and Childbirth Gift Deduction). Source of the definitions of marriage and birth dates, the KRW 100m each, the combined KRW 100m ceiling in paragraph (3), and paragraphs (5) to (7).
- Ministry of Government Legislation, National Law Information Center — statutory text — Same Act, Article 57 (Surcharge on Gifts to Lineal Descendants). Source of the 30 percent, the 40 percent for a minor over KRW 2bn, and the proviso where the nearest lineal descendant has died.
- Ministry of Government Legislation, National Law Information Center — statutory text — Same Act, Article 46 (Gift Property Exempt from Tax). Source of subparagraph 5 and of the qualifier “of a dependant.”
- Ministry of Government Legislation, National Law Information Center — statutory text — Same Act, Article 68 (Gift Tax Return). Source of “within three months from the last day of the month in which the gift was received.”
Where to check further
- What counts as “socially acceptable” living and education expenses. Article 46 imposes the “of a dependant” requirement and names no amount — the National Tax Service helpline (126) and Hometax's gift tax case notes show how it is applied.
- How residency is determined. Article 53 grants the deduction to residents only, but the test lives in the Income Tax Act — if you have spent time abroad, settle it with your district tax office or 126 first.
- The gift tax return form and supporting documents. The statute fixes the deadline and nothing more — Hometax's gift tax filing menu lists the form and attachments; for larger amounts, work through it with a tax professional.
Written as of August 2026. All quotations are the statutory text as published by the National Law Information Center, and what we could not confirm is listed separately above. Gifts carry ten years of history with them, so outcomes vary sharply case by case. For larger amounts, check in advance with the National Tax Service counselling line (126) or a certified tax accountant. This article is general information, not tax advice.
