National Tax Service Launches Free One-Click Refund Service

The National Tax Service (NTS) officially launched its new comprehensive income tax refund service, dubbed 'One-Click,' on March 31, 2025. This innovative service allows taxpayers to check their potential refund amounts for up to the past five years and apply for refunds with just a single click. Unlike private platforms that charge hefty fees ranging from 10% to 20% of the refund amount, the NTS's 'One-Click' service is completely free of charge.

With an estimated 3.11 million eligible taxpayers, including those with earned income and wage income, the NTS anticipates that around 2.9 trillion won will be refunded through this new initiative. This includes individuals such as delivery riders and academy instructors, who often navigate complex tax situations. The NTS aims to streamline the refund process, making it accessible and hassle-free for those who may have previously missed out on refunds due to lack of knowledge about the filing process.

Taxpayers can easily check their refund status by visiting the NTS's Hometax website (www.hometax.go.kr) on their mobile phones or PCs. By clicking the 'One-Click Refund Report' button on the main screen and logging in via simple authentication methods, users can quickly determine whether they are eligible for a refund and how much they can expect to receive.

To further assist taxpayers, the NTS is sending out individual notifications via mobile text messages to inform eligible individuals about their potential refunds. This proactive approach aims to ensure that no one misses out on the opportunity to claim their money back.

In a statement, the NTS explained that the refund amounts are calculated using advanced big data analysis, which reviews various deduction requirements. This means that taxpayers can rest assured that there is no risk of excessive refunds leading to additional taxes. The NTS has emphasized that their service is designed to be user-friendly, requiring no additional collection of personal information and minimizing the risk of data breaches.

The introduction of the 'One-Click' service comes in response to ongoing controversies surrounding private tax platforms, which have faced criticism for their high fees and the potential for errors in refund applications. Kang Min-soo, the head of the NTS, initially promised to implement a direct refund service last July, acknowledging the need for a more reliable and cost-effective solution for taxpayers.

Since 2022, the NTS has been actively guiding refunds for earned income earners, returning approximately 2.6 trillion won to over 10 million taxpayers. This effort has laid the groundwork for the successful implementation of the 'One-Click' service, which is expected to significantly benefit those who may have missed filing their comprehensive income tax returns.

Eligible taxpayers for the 'One-Click' service include those with refund amounts of 5,000 won or more, allowing them to apply for refunds for the tax years 2020 to 2024. The NTS estimates that among those eligible, approximately 750,000 are 'N-jobbers'—individuals juggling multiple jobs—while around 1.07 million are senior citizens aged 60 and above, who may have forgotten to file their refunds after retirement.

According to the NTS, if taxpayers report the amount guided by the 'One-Click' service without making any modifications, the refund review process will be expedited, with payments planned to be issued within one month. However, if any changes are made to the reported amounts, the NTS plans to implement a comprehensive income tax refund verification system to ensure that refunds are processed within two to three months.

Lee Seong-jin, head of information and communication management at the NTS, highlighted the advantages of the 'One-Click' service, stating, "There are no fees, no risk of personal information leakage, and it is more accurate compared to private platforms." He also addressed concerns about the impact on private tax services, asserting that the NTS's goal is to provide better service to the public rather than to inhibit competition.

Furthermore, the NTS is taking proactive measures to prevent improper deductions by utilizing AI-based systems for automatic refund reviews. This initiative aims to identify and address any cases of excessive refund claims, which have been a concern in recent years, particularly with the surge in applications through private platforms.

Taxpayers are encouraged to be vigilant when applying for refunds, as excessive claims could lead to additional taxes being imposed. The NTS has been closely monitoring high-income refunders and has identified several cases where extra taxes were applied due to improper claims.

To combat misunderstandings around refund notifications, the NTS plans to collaborate with popular platforms like Coupang, T-map, and AlbaMon to directly inform workers about the 'One-Click' service. This initiative aims to prevent potential confusion regarding refund notifications that may be mistaken for phishing attempts.

As the NTS continues to enhance the 'One-Click' service, its focus remains on improving convenience and accuracy for taxpayers, ultimately supporting the broader economy. The launch of this service marks a significant step towards modernizing tax refunds and ensuring that all eligible individuals can benefit from their rightful refunds without the burden of fees or complicated processes.