With two or more children under 18, you can pay less acquisition tax on a car. Article 22-2 of Korea’s Restriction of Special Local Taxation Act exempts one vehicle acquired and registered for child-rearing by 31 December 2027 for families with 3 or more children (cars other than 7–10 seaters capped at 1.4 million won), and gives 50% off for 2 children (other cars over 1.4 million won: 700,000 won off). Transferring it within a year of registration without a good reason means the relief is clawed back.
1. 3+ children: one vehicle exempt — cars other than 7–10 seats exempt up to 1.4 million won, else 1.4 million off.
2. 2 children: one vehicle 50% off — other cars over 1.4 million won get 700,000 won off.
3. Transferred within a year without cause: clawed back. Acquisitions to 31 December 2027.
Who and which vehicles — Art. 22-2(1)
| Type | What the source says | Worth noting (ours) |
|---|---|---|
| Children | Under 18, per the family register; includes adopted and step-children (adopted children don’t count for birth parents) | — |
| Purpose, deadline | For child-rearing, acquired and registered by 31 December 2027 | — |
| How many | The first vehicle applied for | — |
| Vehicles | Passenger cars (7–10 seats or other), vans up to 15 seats, trucks up to 1 tonne, motorcycles up to 250cc | — |
| Excluded | If someone already owns a relieved vehicle, or it’s jointly registered with anyone other than a spouse or child | — |
How much — paras. 1 and 2
| Children · vehicle | Relief | Worth noting (ours) |
|---|---|---|
| 3+ · 7–10-seat car, van, truck, motorcycle | Exempt | — |
| 3+ · other passenger car | Exempt up to 1.4 million won; else 1.4 million off | — |
| 2 · 7–10-seat car, van, truck, motorcycle | 50% off | Added 31 December 2024 |
| 2 · other passenger car | 50% up to 1.4 million won; else 700,000 off | — |
In our example, a 40 million won ordinary car at 7% carries 2.8 million won. With 3 children it’s 1.4 million won; with 2 children, 2.1 million won. An 18 million won car carries 1.26 million won, so 2 children pay half: 630,000 won. To try other reliefs, use the car acquisition tax calculator.
Replacing or transferring — paras. 3 and 4
| Type | What the source says | Worth noting (ours) |
|---|---|---|
| Replacement | A replacement acquired per Decree gets the same relief | Conditions in the Decree |
| To a spouse | Transferring the car to a spouse keeps the relief | — |
| Inheritance | On the carer’s death, transfer to spouse and children in statutory shares keeps it | — |
| Claw-back | Transfer within a year of registration without reasons such as death, marriage, emigration or licence loss: relief recovered | Provisos not fully set out |
Checklist
- ☐ 2 or 3+ children under 18 (family register)
- ☐ No relieved vehicle already in the family
- ☐ No joint registration outside spouse and children
- ☐ 7–10 seats or other car changes the cap
- ☐ Selling within a year triggers claw-back
Questions that remain
What if the eldest turns 18?
The article counts children “under 18”. The date for counting age isn’t in the text we read; check with the local tax office.
Is the annual car tax reduced too?
Paragraphs 1 and 2 cover acquisition tax. For the annual tax see car tax.
Sources
- Korean law database (law.go.kr) — Restriction of Special Local Taxation Act Art. 22-2 — source (current text, effective 2 June 2026, Act No. 21738; checked 19 October 2026). Child count, vehicles, one vehicle, joint registration exclusion, 3- and 2-child amounts, replacement, spouse and inheritance, one-year claw-back.
- Not read. Para. 4 provisos in full; the Decree’s replacement conditions.
- What we added. The “worth noting” column and the Korean everyday gloss.
Where to check further
- Local tax office, Wetax — applying for relief.
Written on 19 October 2026. The content is from the source; the glosses are ours.
