Nobel Literature Prize Winner Han Kang to Receive 1.4 Billion KRW... What About Taxes?

Prize Money of 1.43 Billion KRW and Medal·Certificate Awarded
Nobel Prize Money Exempt from Tax as Other Income
Choi Sang-mok, Minister of Strategy and Finance, "Tax Exemption Confirmed"

Novelist Han Kang has been selected as this year's Nobel Prize in Literature laureate. [Source=Yonhap News]

Novelist Han Kang has been selected as the first Korean recipient of the Nobel Prize in Literature, drawing attention to the prize money she will receive.

The Swedish Academy announced on the 10th (local time) that Han Kang was chosen as this year’s Nobel Prize in Literature laureate. They described Han Kang’s work as "a powerful poetic prose that confronts historical trauma and exposes the fragility of human life." As a result, Han Kang became the first Korean and the first Asian woman to win the Nobel Prize in Literature. Along with the honor, she will receive a substantial cash prize. Nobel laureates are known to be awarded 11 million kronor (approximately 1.43 billion KRW), a medal, and a diploma. A netizen asked, "Is the Nobel Prize in Literature prize money subject to tax?" sparking interest in the actual amount Han Kang will receive.

General income tax rates range from 6% to 45% depending on the taxable base. In the case of lottery winnings, after deductions and applying the tax rate, the net amount received from a 1 billion KRW prize is about 800 million KRW. However, the Nobel Prize money is exempt from taxation under Article 18 of the Enforcement Decree of the Income Tax Act. The scope of non-taxable other income explicitly includes "prize money and awards received by recipients of the Nobel Prize or awards from foreign governments, international organizations, international bodies, or other foreign organizations or funds." Therefore, Han Kang will receive the full Nobel Prize in Literature money without any tax deductions. On the morning of the 11th, at the National Assembly’s Planning and Finance Committee audit, Deputy Prime Minister and Minister of Strategy and Finance Choi Sang-mok reportedly responded "I believe so" when asked, "Is the Nobel Prize money exempt from income tax under the Enforcement Decree of the Income Tax Act?"

Meanwhile, following the announcement of Han Kang’s award, a "Han Kang fever" has swept the bookstore industry, with her books quickly selling out at Kyobo Bookstore, Yes24, and others. Changbi Publishing, which published her representative works The Vegetarian and Human Acts, stated, "We have to ship out inventory as soon as it is printed, so it will be difficult to change the covers or create new editions," adding, "We expect a huge surge in orders going forward. We will hold a press conference related to the award."