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Tax & Tax Saving

Tax & Tax Saving

Korea Overseas Stock Capital Gains Tax Calculator

Simulate how much you can sell before year-end to reduce your tax, using the KRW 2.5 million basic deduction and netting of gains and losses.

Calculated in your browser only · inputs are not savedChecking tax law basis

Gains and losses already realized this year (Jan 1 – today)

KRW
KRW

You can find this under 'Overseas stock capital gains inquiry' (converted to won) in your brokerage app. Enter losses as positive numbers.

Unrealized gains/losses on stocks you still hold (in KRW)

Selling and rebuying raises your cost basis, which lowers capital gains tax in later years. Fees and currency exchange costs apply.

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Overseas Stock Capital Gains Tax Saving Simulator

Enter values and press Simulate tax savings

Potential tax savings

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Pre-year-end action plan

    Nov-Dec tax-saving season

    Overseas stock capital gains tax is decided in December

    Overseas stock capital gains tax is calculated by adding up the gains and losses of all trades settled from Jan 1 to Dec 31. Clearing out losing stocks or using up your deduction limit before year-end changes the tax you pay next May.

    1. Enter this year's realized gains and losses

      Check the total gains and losses on stocks you have already sold in your brokerage app and enter them.

    2. Unrealized gains and losses on holdings

      Enter the won-denominated unrealized gains and losses on stocks you still hold, and the tool calculates which losing stocks to sell.

    3. Review the action plan

      Shows a step-by-step plan, from tax-loss selling to using up the deduction limit, along with the tax saved.

    Calculation basis

    Capital gains tax = (annual capital gains − capital losses − KRW 2.5 million basic deduction) × 22%
    • Gains and losses by country and by stock are all netted together. They can also be netted against domestically taxable stocks (large shareholders, etc.).
    • The year is determined by the settlement date, not the trade date. US stocks settle on T+1, so shares sold on the last trading day of the year may fall into the next year. Be sure to check your broker's year-end sale cutoff notice.
    • Under current Korean tax law, there is no restriction (wash-sale rule) on buying the same stock back right after realizing a loss. However, there are trading costs and price movement risk.
    • Filing and payment take place from May 1 to May 31 of the following year. Many brokerages offer free filing assistance.

    Worked examples

    Gains and losses realized in the same calendar year are netted, the ₩2.5 million basic deduction is subtracted, and 22% is applied. Trading costs are ignored. Amounts are in Korean won.

    Realized gainsRealized lossesNet gainTaxable after deductionTax (incl. local tax)
    ₩5,000,000₩0₩5,000,000₩2,500,000₩550,000 (about $393)
    ₩10,000,000₩0₩10,000,000₩7,500,000₩1,650,000 (about $1,179)
    ₩30,000,000₩0₩30,000,000₩27,500,000₩6,050,000 (about $4,321)
    ₩50,000,000₩0₩50,000,000₩47,500,000₩10,450,000 (about $7,464)
    ₩30,000,000₩10,000,000₩20,000,000₩17,500,000₩3,850,000 (about $2,750)

    US dollar figures are rough conversions at an illustrative rate of 1,400 won per dollar and are not live exchange rates. These match the calculator's "tax this year" figure before any year-end adjustment.

    Common mistakes

    • Calculating tax stock by stock. Overseas stocks are taxed on the net gain after netting gains and losses within the year.
    • Claiming the ₩2.5 million deduction on every stock. The basic deduction is applied once to the annual total.
    • Missing the filing window. Returns are filed and paid from May 1 to May 31 of the following year, and many brokers offer a filing service.

    How it is calculated

    The annual (January 1 to December 31) net gain on overseas stocks, less the ₩2.5 million basic deduction, is taxed at a flat 22% (20% capital gains tax plus 2% local income tax). Losses can be netted against gains on domestic taxable stocks. Reference date: tax year 2026, checked October 3, 2026.

    FAQ

    Is the KRW 2.5 million deduction per person or per account?

    It is KRW 2.5 million per year per person (taxpayer). Gains and losses across all your brokerage accounts are added together and the deduction is taken only once.

    Is it fine to sell a losing stock and buy it back?

    Korean tax law currently has no rebuying restriction like the US wash-sale rule, so netting of gains and losses is recognized. However, there are trading fees, currency exchange costs, and price movement risk between the sale and the rebuy.

    Can I reduce capital gains tax by gifting to family?

    Selling after gifting to a spouse used to raise the cost basis to the price at the time of the gift, but from 2025 the rules changed so that if gifted overseas stocks are sold within 1 year, tax is calculated using the donor's cost basis.

    Are exchange rate changes included in capital gains?

    Yes. The sale price and the acquisition cost are each converted to won at the exchange rate on their settlement dates, so currency gains are included in capital gains.

    Results are estimates based on your inputs and simplified assumptions, and are for reference only, not a basis for investment decisions.

    Last updated:

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