Guide to 연말정산 (Year-End Tax Settlement) in Korea

What is 연말정산?

연말정산 (Yeonmal Jeongsan) is the annual income tax reconciliation process for salaried employees in South Korea. Since employers withhold estimated taxes each month, this process reconciles actual income and deductible expenses to determine if the employee gets a refund or owes more.

It’s similar to filing a W-2 tax return in countries like the U.S.

When Does It Happen?

• Data collection begins: Early January

• Submission to employer: Typically by late January

• Employer files with NTS: February

• Refunds or additional payments: Processed in March

  
  

Step-by-Step: How to Use HomeTax for 연말정산

Step 1: Log in to HomeTax

• Go to: https://www.hometax.go.kr

• Click 로그인 > Use 공동/금융 인증서 or 간편인증

  
  

Step 2: Go to 연말정산 간소화 (Simplified Year-End Settlement)

• Navigate to: [조회/발급] → [연말정산 간소화]

• Select the relevant tax year (e.g., 2024)

  
  

Step 3: Review Pre-Collected Data

• View or download records for:

  • Salary

  • Insurance (national, private)

  • Medical expenses

  • Education costs

  • Charitable donations

  • Housing loan interest

• Use the 자료제공동의 feature to allow institutions to share your data

  
  

Step 4: Download or Submit to Employer

• You can either:

  • Print/export the data and give it to your employer manually

  • OR use "회사 제출용 PDF 다운로드" and submit digitally

    
    

Tips

Item	Notes
Missed deductions	You can modify or add manually
Spouse and dependents	Include their medical/education expenses
Don’t see data?	Use the 자료제공동의 to pull from hospitals, schools, etc.

What Happens Next?

• Your employer files the final tax statement in February

• You’ll receive a refund or additional payment notice in March payroll

• You can check your final outcome under [마이홈택스 → 연말정산 결과 조회]

Credit: Hometax