The National Tax Service in South Korea has announced an increase in the number of households eligible for the Earned Income Tax Credit (EITC) and Child Tax Credit for the first half of 2024, due to a relaxation of income requirements. Starting today, May 1, 2025, applications will be accepted until June 2, 2025, for 3.4 million households with earned, business, or religious income in 2024.
This year, the number of eligible dual-income households has jumped from 140,000 to 200,000, a significant increase of 60,000 households. The income threshold for dual-income households was raised from less than 38 million won to less than 44 million won, aligning it with the income limit for single-person households.
The estimated total amount for EITC payments is projected to be 3.7508 trillion won, averaging around 1.1 million won per household. The application guide, detailing the requirements and process, began distribution today. Those under 60 years old will receive this guide through 'National Tax Mail,' while those aged 60 and above will receive it via traditional mail.
For those who miss the regular application period, additional applications can be submitted until December 1, 2025; however, late applications will see a 5% reduction in payment amounts. Households that already applied for the first half of the year in September 2024 or March 2025 will not need to reapply, as they will undergo a settlement process at the end of June 2025, which will address any additional payments or refunds.
To qualify for the EITC, single-person households must have a total income of less than 22 million won, while dual-income households must not exceed 32 million won. The Child Tax Credit, on the other hand, requires a total income of less than 70 million won and at least one child under the age of 18.
The National Tax Service has also automated the EITC process for 410,000 households aged 60 or older who had pre-agreed to automatic application until last year. Starting this year, the automatic application system has been expanded to allow anyone to opt-in, regardless of age. If the application requirements are met for two consecutive years, the EITC will be automatically applied without any additional procedures.
In addition to the regular applicants, the National Tax Service is actively supporting approximately 30,000 households in areas declared as special disaster zones due to the large-scale wildfires that occurred in March 2025. These households will receive assistance through consultation centers to ensure they do not miss out on the benefits.
This increase in eligibility and the expansion of automatic applications are part of the government's efforts to provide financial support to working families, especially in light of the challenges posed by the recent economic climate and disasters.
As the application period opens, many households are expected to take advantage of these benefits, which aim to alleviate financial pressure and encourage workforce participation.
