Year-End Tax Settlement Refund Check Guide for Foreign Workers in Korea — 2026
Where and How to Check Your Year-End Tax Settlement Refund
Every year at the start of the new year, salaried workers begin talking about the "13th-month paycheck" — a reference to the year-end tax settlement (연말정산) refund. At the same time, many workers are caught off guard by a notice of additional tax owed. Below is a complete guide to checking your refund and understanding the related procedures, based on 2026 standards.
What Is a Year-End Tax Settlement Refund?
Year-end tax settlement is the process by which a company compares the employment income tax (근로소득세) withheld from monthly paychecks throughout the year against the actual tax owed, and settles the difference at year-end (Article 137 of the Income Tax Act / 소득세법 제137조). If the amount withheld exceeds the actual tax owed, the worker receives a refund; if it falls short, an additional payment is required.
The outcome depends heavily on how many deduction items you claimed — such as personal deductions (인적공제), medical expenses, education expenses, housing funds, and credit card spending.
Note for foreign workers: Your employment contract may specify different payroll arrangements, but the statutory rules on withholding and settlement apply regardless.
How to Check Your Refund — 3 Steps on Hometax
Step 1: Access and Log In to Hometax
Go to the National Tax Service's Hometax (hometax.go.kr) and log in using a joint certificate (공동인증서, formerly known as a public certificate), a simple authentication service (Kakao, Naver, PASS, etc.), or your ID.
Step 2: Check the Year-End Tax Settlement Simplified Service
From the top menu, select [Incentives · Year-End Tax Settlement · Electronic Donations (장려금·연말정산·전자기부금)] → [Year-End Tax Settlement Simplified Service (연말정산 간소화)]. Here you can look up your deduction data and download it as a PDF to submit to your company.
Step 3: Check Your Estimated Tax Amount
Use the "Estimated Tax Calculation (예상세액 계산)" feature in the [Convenient Year-End Tax Settlement (편리한 연말정산)] menu to preview your expected refund or additional payment in advance. After your company submits the payment statement, you can check the final settlement result under [My Hometax (My홈택스)] → [Payment Statement Submission History (지급명세서 등 제출내역)].
When Will I Receive the Refund?
Under Article 137 of the Income Tax Act (소득세법 제137조), the withholding agent (the company) must complete the year-end tax settlement by the last day of February. The refund is typically paid together with the February paycheck, though it may be delayed to March depending on the company's circumstances. Check your pay stub for the "income tax refund (소득세 환급)" line item.
Missed a Deduction? — Filing an Amended Return (경정청구)
If you failed to submit deduction documents during the year-end tax settlement period or missed any items, you can receive an additional refund by filing an amended return (경정청구) during the May comprehensive income tax filing period (Article 45-2 of the Framework Act on National Taxes / 국세기본법 제45조의2). The deadline for an amended return is within 5 years from the statutory filing deadline.
The Relationship Between Take-Home Pay and Year-End Tax Settlement
The four major social insurance premiums deducted from your monthly paycheck are separate from the year-end tax settlement. For reference, the key employee contribution rates as of 2026 are: National Pension (국민연금) — 4.75%; Health Insurance (건강보험) — 3.595%; Employment Insurance unemployment benefit portion (고용보험 실업급여분) — 0.9%. These amounts are not subject to refund. Only employment income tax (근로소득세) and local income tax (지방소득세) are eligible for a year-end tax settlement refund.
If you want to know your monthly take-home pay, try the Annual Salary Take-Home Pay Calculator at Workbear (workbear.kr). It automatically calculates the four major insurance premiums and income tax, and helps you understand your actual annual take-home amount together with your estimated year-end tax settlement refund.
This article is for informational purposes only and does not constitute legal advice. For specific cases, consult a certified labor attorney (노무사) or lawyer.
Frequently Asked Questions
When does the year-end tax settlement refund get deposited into my account?
It is generally paid together with the February paycheck. Under Article 137 of the Income Tax Act 소득세법 제137조 , the withholding agent the company must complete the year-end tax settlement by the last day of February and return any refund amount to the employee. Depending on the company's circumstances, it may be paid on the March payday instead, so check your pay stub.
What should I do if I owe additional tax instead of receiving a refund?
In principle, any additional tax owed is withheld directly from the February paycheck. If the amount is large, you can ask your company to split the payment; under the Enforcement Decree of the Income Tax Act, installment payment over 3 months is permitted. If you missed any deduction items, you can file an amended return 경정청구 during the May comprehensive income tax filing period to receive a refund.
Can an employee who has resigned still receive a year-end tax settlement refund?
For mid-year resignees, the company performs an interim settlement at the time of resignation. If there are additional deductible items after that, you must apply for a refund directly through the May comprehensive income tax filing the following year. If you have started a new job, you will also need to consolidate and settle the employment income from your previous employer.
What is the relationship between the year-end tax settlement refund and my actual take-home pay?
The year-end tax settlement refund is the amount returned when the employment income tax withheld throughout the year exceeds the actual tax owed. Your monthly take-home pay is the amount after deducting the four major social insurance premiums National Pension, Health Insurance, Employment Insurance, and Industrial Accident Compensation Insurance as well as income tax and local income tax. The year-end tax settlement refund is settled separately, once a year.