The National Assembly passed a bill accompanying the 2026 budget that will raise corporate taxes by one percentage point across all brackets starting next year.

Starting January 1, income up to 200 million won, or roughly 136-thousand U.S. dollars, will be taxed at ten percent, and that between 200 million won and 20 billion won will be taxed at 20 percent.

Taxable income between 20 billion won and 300 billion won will face a 22 percent levy, and income exceeding 300 billion won will be taxed at 25 percent.

The move reverses the previous administration's 2022 rate cut, and the government expects to collect an additional 17 trillion won in corporate taxes between 2027 and 2032.

The Assembly passed another bill mandating the separate taxation of dividend income, creating a new bracket for amounts over 5 billion won and a top tax rate of 30 percent.

Next year, the government will claim 25 percent on dividend income of 300 million won to five billion won, 20 percent on 20 million won to 300 million won and 14 percent on businesses' first 20 million won.