Refunds · National Tax ServiceEstimated
Pension Savings + IRP Tax Credit (up to ₩1.48M/yr)
⚠️ Think it over💰 Up to ₩1.48M/yr refund
Contribute ₩9M a year and get up to ₩1.485M back as a tax refund.
💡 Put in ₩9M each year and get up to ₩1.48M back in taxes — the top tax-saving move for salaried workers. But cash out before age 55 and you pay it back.
What the ads say
A pension account that prepares for retirement while giving you a tax refund.
How it actually works
Pension savings (up to ₩6M) plus an IRP qualify for a tax credit on up to ₩9M a year combined. With total salary of ₩55M or less, the rate is 16.5% (up to ₩1.485M); above that, 13.2% (up to ₩1.188M). It's 'savings,' but the refunded portion is a guaranteed return — which is why it's rated the No.1 tax-saving move for salaried workers.
⚠ Traps
- •Cancel or withdraw before age 55 and the credited amount is clawed back as a 16.5% other-income tax
- •Pension income tax (at a low rate) applies when you draw the pension — it's not fully tax-free
- •You need the spare capacity to contribute (₩9M); overstretching strains your liquidity
✓ Good for
- · Salaried workers who owe extra tax at year-end settlement
- · People who can lock retirement funds away for the long term
✗ Not for
- · People likely to need cash now and break it before age 55
- · People with little tax to pay (e.g. below the tax threshold), where the refund effect is small
Verification score (rubric)
10 / 12
- Real cash savings
- Ease of conditions
- No traps
- Clear audience
- Validity
- Accessibility
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