A new deduction of up to 100 million KRW will be established for property received as a gift within two years of marriage registration or childbirth. The comprehensive education program 'Neulbom School,' which integrates after-school and childcare services, will be fully introduced nationwide from the second semester of next year. An 'Infant Class Incentive' will be introduced for the infant class (ages 0-2), and the annual support amount per person for the Integrated Cultural Voucher will be increased from 110,000 KRW to 130,000 KRW.
2024 Finance, Fiscal, and Taxation: New 100 Million KRW Deduction for Marriage and Childbirth Gifted Property... Implementation of Electronic Claims for Indemnity Insurance
The Ministry of Economy and Finance announced that from next year, a new deduction for gifted property related to marriage and childbirth will be established. Property gifted from direct ascendants within two years before or after the marriage registration date (a total of four years) or within two years from the child's birth date will be deductible from the taxable value of gift tax up to 100 million KRW. This is applied separately from the basic deduction of 50 million KRW, and even if the marriage or birth registration was done before 2024, the law will apply if the gift is received after January 1, 2024.
The deduction rate for video content production costs with significant domestic industrial ripple effects (such as actor fees, labor costs, set production costs) will be increased from a maximum of 15% to 30%. To attract foreign technical experts to Korea, the income tax exemption period will be extended by five years (until December 31, 2028). To strengthen private-led technology development (R&D) capabilities, the non-taxable limit for job invention compensation will be raised from 5 million KRW to 7 million KRW annually. To promote donations, the deduction rate for donations exceeding 30 million KRW will be temporarily increased by 10 percentage points until the end of next year.
The income limit for child allowance will be raised from 40 million KRW to 70 million KRW, and the non-taxable limit for childbirth and childcare allowances will be increased from 100,000 KRW to 200,000 KRW per month. The threshold for separate taxation of private pension income, such as pension savings and retirement pensions, will be raised from 12 million KRW to 15 million KRW. The income deduction limit for housing subscription savings will be adjusted upward from 2.4 million KRW to 3 million KRW annually, and the special low-rate taxation (10%) bracket for gift tax on business succession will be expanded from 6 billion KRW to 12 billion KRW.
The capital gains tax threshold for listed stocks will be relaxed from 1 billion KRW to 5 billion KRW, and the post-tax refund threshold for foreign tourists purchasing goods at duty-free shops will be eased from 30,000 KRW to 15,000 KRW per transaction. From the first half of next year, government bonds for individual investors will be issued to support long-term asset formation for citizens, and infrastructure for refinancing apartment mortgage and jeonse loans will be expanded. From October 25 next year, consumers will be able to electronically send insurance claim documents from hospitals and pharmacies to insurance companies upon request.
2024 Education, Health, and Culture: Full Introduction of Neulbom School... 6+6 Parental Childcare Leave System
From the second semester of next year, Neulbom School, a comprehensive education program integrating after-school and childcare services, will be operated in all elementary schools nationwide. Neulbom School will provide free daily programs of about two hours including arts, physical education, and psychological programs to all first-grade elementary students who wish to participate. The revised School Violence Prevention Act will be enforced from the first semester, and from the end of March, measures to protect victim teachers and take action against offending students will be implemented to establish teacher authority.
The basic livelihood security system's livelihood benefit support standard will be raised to a historic high of 13.16% (based on a four-person household). Accordingly, the livelihood benefit will be adjusted upward from 1,621,000 KRW to 1,834,000 KRW for a four-person household. To ensure stable operation of infant classes in daycare centers, additional incentives will be provided even if the infant class (ages 0-2) enrollment is not full, and the 'First Meeting Voucher' to reduce early childcare costs will be expanded to newborns in multi-child families. The 6+6 parental childcare leave system, an expanded revision of the 3+3 system, will be implemented, providing up to 4.5 million KRW per month in childcare leave benefits for the first six months for each parent.
The minimum wage will be raised to 9,860 KRW per hour next year, and the '24-hour Narcotics Counseling Center' operating 24/7 will be fully launched. The Integrated Cultural Voucher support amount for 2.58 million basic livelihood security recipients and near-poverty groups will be increased from 110,000 KRW to 130,000 KRW per person. From March 22 next year, all games offering probability-based items will be required to disclose probability information, and the use of 'macro' programs to unfairly resell performance tickets will be prohibited. From May 17, the term 'Cultural Heritage' will be changed to 'National Heritage.'
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