Gifts to Your Child Are Tax-Free Up to KRW 50 Million Over 10 Years -- KRW 20 Million for a Minor, an Extra KRW 100 Million for Marriage or a Baby, and You File Within 3 Months
When a child gets married or looks for a home, it is common for parents to chip in a large sum, yet people often learn only later that this money counts as a gift for tax purposes. Gift tax is paid by the person who receives the money, and the deduction is applied to everything received over ten years. So what matters more than how much you received at once is how much you received from whom within ten years. This article sets out the deduction limits, the extra deduction for marriage and childbirth, the filing deadline and the penalties for missing it, based on National Tax Service guidance.
The recipient pays gift tax, and gifts are added up over ten years
The person liable for gift tax is not the giver but the recipient (donee). Deductions are applied not per giver but per group of givers, and the tax office adds what you have already deducted in the ten years before the gift date to see whether you exceed the limit. The gift deduction applies when the recipient is a resident of Korea, and a common-law partner is not a legal spouse, so the spouse deduction does not apply.
The ten-year deduction limit depends on the relationship
According to the National Tax Service Q&A, the ten-year limits are KRW 600 million from a spouse, KRW 50 million from lineal ascendants such as parents (KRW 20 million if the recipient is a minor), KRW 50 million from lineal descendants, and KRW 10 million from other relatives, such as blood relatives within four degrees and in-laws within three degrees. In 2026 the deduction for gifts to children is still KRW 50 million for an adult and KRW 20 million for a minor. What rose sharply this year is the child deduction under inheritance tax, which is separate from gift tax deductions.
Gifts from parents and grandparents share a single limit
The most common misunderstanding is "50 million from Dad, 50 million from Mom, 50 million from Grandma." Lineal ascendants form one group, so everything received from your father, mother and grandparents is added together and deducted only up to KRW 50 million per ten years. If you receive gifts from several people at the same time, the deduction is divided in proportion to the amounts, and if they arrive at different times the earlier gift is deducted first. For example, if an adult child receives KRW 70 million from parents this year, the taxable base is KRW 20 million after deducting KRW 50 million, and at a 10% rate the tax is KRW 2 million.
Marriage or a new baby adds another KRW 100 million
Since January 1, 2024, property received from lineal ascendants within two years before or after the marriage registration date, or within two years of a child's birth (including adoption), is deducted by up to a further KRW 100 million. It is separate from the basic KRW 50 million deduction, so together you can receive up to KRW 150 million tax-free. The combined cap for the marriage and childbirth deductions is KRW 100 million, and it covers parents and grandparents together. Materials released by the National Tax Service say that remarriage and childbirth outside marriage also qualify. However, a parent forgiving a child's debt is not protected by this deduction and is taxed as a gift.
You file within three months of the end of the month you received it
The filing and payment deadline is three months after the end of the month in which you received the gift. If you received it on March 15, the deadline is June 30, three months after March 31. If you file within the deadline, 3% of the calculated tax is deducted as a filing tax credit. In the KRW 70 million example, KRW 60,000 comes off the KRW 2 million tax, so you pay KRW 1.94 million. You can file yourself on Hometax, and the gift date is generally the day the money arrived in your account.
Missing the deadline adds penalties
If you do not file, a penalty of 20% of the unreported tax is added, and if you pay late a late-payment penalty accrues at 0.022% per day. If you file voluntarily after the legal deadline the penalty is reduced: 50% off within one month, 30% off within three months and 20% off within six months, with no reduction after six months. If you realize you missed it, filing as early as possible works in your favor.
Keep a record even when the tax is zero
According to reported National Tax Service guidance, if a gift is within the deductions and no tax is payable, there is no duty to file. Even so, filing leaves a record of the date and amount, which makes it easier to explain the source of funds later when you buy a home. Conversely, if you receive money again from the same parents within ten years, the earlier amount is added, so write down dates and amounts. If a baby is due, also check the National Pension childbirth credit, and if your child rents a home, check the requirements for the monthly rent tax credit. When assets move, the property criterion for being a health insurance dependent can change as well.
What to check before you receive a gift
First, add up what you received from the same group in the last ten years. Second, decide whether the KRW 50 million or the KRW 20 million limit applies, depending on whether the recipient is an adult or a minor. Third, check whether the gift falls within two years before or after the marriage registration date or the birth date, so you can use the extra KRW 100 million deduction. Fourth, mark on your calendar the date three months after the end of the gift month. Fifth, if the amount is large, check with the tax office or a tax accountant before filing on Hometax. This article is general information based on National Tax Service guidance and does not replace tax advice for an individual case. You can check with the National Tax Service call center at 126, and tax law can change, so confirm the latest rules before you file.
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