How much is added if a Korean property tax, automobile tax or resident tax bill slips past its due date? And what if you miss a tax you have to file yourself, such as the acquisition tax? Penalties on local taxes are gathered in Articles 53 to 57 of the Framework Act on Local Taxes. We read the version in force from 2 October 2026 and Article 34 of the Enforcement Decree in the original.
1. Miss the due date on a bill: 3%. 3/100 of the unpaid tax is added (Article 55(1)(3)).
2. Then 0.66% for each month. But this part does not apply where the tax is under 450,000 won, and it cannot run beyond 60 months.
3. Fail to file: 20%; under-report: 10%. Correcting early cuts these by up to 90% and 50% (Articles 53, 54 and 57).
Local taxes come in two kinds
How the penalty works depends on who computes the tax.
| Kind | Examples (added by us) | Penalty if missed |
|---|---|---|
| Taxes that arrive by bill | Property tax, automobile tax, individual resident tax | Late-payment penalty (3% + 0.66% per month) |
| Taxes you file and pay yourself | Acquisition tax, local income tax, business-place resident tax | Non-filing or under-reporting penalty + late-payment penalty (0.022% a day) |
The taxes in the middle column are our examples. Some individual tax laws carry their own penalty rules (the acquisition tax, for one); we did not read those this time.
When a bill's due date has passed — Article 55(1)(3) and (4)
- 3% once — the tax unpaid by the due date on the tax notice × 3/100
- 0.66% for each month — for every month that passes after the due date, the unpaid tax × 66/10,000 a month (Decree Article 34(2))
- No monthly charge under 450,000 won — where the tax per notice and per tax item is under 450,000 won, the item (4) penalty does not apply (Article 55(4))
- 60-month ceiling — the item (4) penalty cannot be charged for more than 60 months, and a period under 1 month is disregarded
| Billed tax (example) | Right after the due date | After 12 months |
|---|---|---|
| Individual resident tax, 10,000 won | 300 won | 300 won (under 450,000 won, so no monthly charge) |
| Automobile tax, 400,000 won | 12,000 won | 12,000 won (under 450,000 won) |
| Property tax, 1,000,000 won | 30,000 won | 30,000 won + 6,600 won × 12 = 109,200 won |
The table is our multiplication of the statutory rates by example amounts (10,000 won × 3% = 300 won; 1,000,000 won × 0.66% = 6,600 won). A 1,000,000 won property tax left unpaid for the full 60 months comes to 30,000 won + 6,600 won × 60 = 426,000 won (our arithmetic). Rounding follows the National Funds Management Act (Article 59), which we did not read, so check the actual after-due amount on the bill. Demand and seizure procedures for continued arrears are not covered here.
When a filing is missed — Articles 53 and 54
| Case | Penalty | With fraud or other wrongful conduct |
|---|---|---|
| Non-filing (no return by the statutory deadline) | 20/100 of the unfiled tax payable | 40/100 |
| Under-reporting | 10/100 of the under-reported tax | 40/100 on the wrongful part, 10/100 on the rest |
On top of that, a late-payment penalty runs for the days of delay — the unpaid tax × the number of days from the day after the statutory payment deadline to the day of voluntary payment or of the tax notice × 22/100,000 a day (Article 55(1)(1), Decree Article 34(1)). This part is capped at 75/100 of the unpaid tax.
22/100,000 a day is about 0.022% × 365 = 8.03% a year (our arithmetic).
Correct it early and the penalty is cut — Article 57(2)
| After the statutory filing deadline | Amended return (under-reporting penalty) | Late return (non-filing penalty) |
|---|---|---|
| Within 1 month | 90% reduction | 50% reduction |
| Over 1 month, within 3 months | 75% | 30% |
| Over 3 months, within 6 months | 50% | 20% |
| Over 6 months, within 1 year | 30% | — |
| Over 1 year, within 1 year 6 months | 20% | — |
| Over 1 year 6 months, within 2 years | 10% | — |
What is reduced is the under-reporting or non-filing penalty; the late-payment penalty is not covered by this table. Returns filed knowing that the local government was about to assess are excluded. A reduction requires an application (Article 57(3), Decree Article 35).
Example — a 5,000,000 won tax filed 30 days late
- Non-filing penalty: 5,000,000 won × 20% = 1,000,000 won → within 1 month, so reduced by 50% → 500,000 won
- Late-payment penalty: 5,000,000 won × 30 days × 22/100,000 = 33,000 won
- Total 533,000 won
All our arithmetic, assuming 30 days falls "within 1 month". Past 6 months there is no reduction of the non-filing penalty and the full 1,000,000 won applies — filing on the day you notice is the cheapest course.
Where no penalty is imposed at all — Article 57(1)
No penalty is imposed where the cause falls under a ground for extending a deadline (Article 26(1)) or where the taxpayer had a justifiable reason for not performing the duty. The grounds for extension are in Article 26, which we did not read this time.
Checklist
- ☐ If a bill is overdue, whether the tax is 450,000 won or more (if so, it grows each month)
- ☐ For a filed tax, how many months have passed since the statutory deadline
- ☐ Whether the reduction application went in with the return
- ☐ Whether you have documents proving a justifiable reason
Questions that remain
Is it the same for national taxes?
The frame is similar but the governing law differs (the Framework Act on National Taxes). Reductions for late returns on national taxes such as global income tax are in penalty relief for late returns.
What are the due dates by tax?
See property tax, automobile tax, resident tax and the tax calendar.
The law was just amended?
What we read is the version partially amended on 29 September 2026 and in force from 2 October. We did not read what the amendment changed (the amending text and Addenda), nor confirm which rules apply to taxes whose due date passed before it took effect.
Sources
- Framework Act on Local Taxes [in force 2 October 2026] [Act No. 22017, partially amended 29 September 2026] — original text (checked 7 October 2026). Article 53 (20/100; 40/100), Article 54 (10/100), Article 55 (3/100; 75/100; 60 months; 450,000 won), Article 57 (reduction rates), Article 59.
- Enforcement Decree of the Framework Act on Local Taxes [in force 2 October 2026] [Presidential Decree No. 36728, amended 29 September 2026] — original text. Article 34 (22/100,000 a day; 66/10,000 a month), Article 35.
- Not read. The amending text and Addenda, Article 26 (grounds for extension), the detail of Article 56 on special collection, penalty rules in individual tax laws, the rounding rule of the National Funds Management Act, and arrears procedures.
- Our arithmetic. 300 won, 12,000 won, 109,200 won, 426,000 won, 8.03%, and the 533,000 won example.
Where to check further
- Wetax — look up the after-due amount and pay.
- The tax office of your city, county or district — reduction applications and whether a reason counts as justifiable.
Written on 7 October 2026. The provisions follow the original text at the Korea Law Information Center; the reading and arithmetic are ours.
