On July 31, 2025, the Ministry of Economy and Finance (MOEF) released the 2025 Tax Revision Bill (the “Bill”), marking one of the most comprehensive revisions to Korea’s fiscal framework in recent years.  The Bill’s stated objectives are to provide efficient tax support for genuine economic growth and simultaneously to expand the revenue base through economic growth and rationalization of the tax system.  The Bill establishes three strategic pillars: (1) promotion of future-strategy industries to drive technological innovation; (2) an inclusive tax policy designed to stabilize livelihoods and foster shared growth; and (3) strengthening the revenue base and rationalizing the tax system.

While household relief measures fall under the second pillar, the first and third bear the greatest relevance for foreign stakeholders.  The Bill redefines incentive framework for strategic industries, seeks to rebalance the corporate tax structure, and reinforce international reporting and compliance standards, collectively reshaping the regulatory landscape for foreign investors and multinational enterprises operating in Korea.

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