South Korea is set to implement several significant legal changes in 2025. These new laws will impact various aspects of daily life and business operations. This post highlights the most important legal updates to help individuals and companies prepare for these changes.
1. Tax Benefits to Encourage Marriage and Asset Building
Starting January 1, 2025, new tax benefits for marriage will be introduced. Individuals who register their marriage between 2024 and 2026 can receive a one-time deduction of KRW 500,000 from their income tax for the year in which they registered their marriage.
Additionally, the income threshold for applying for the Earned Income Tax Credit (EITC) for dual-income households will increase from KRW 38 million to KRW 44 million. This adjustment ensures that dual-income households are not disadvantaged compared to single-income households.
Support for first-time homebuyers has also been expanded. The scope of income tax deductions for housing subscription savings has been widened to include spouses of non-homeowners, making it easier for more families to benefit.
2. Mandatory Consumer Consent for Online Subscription Price Changes
From February 14, 2025, online service providers must obtain explicit consumer consent before increasing subscription prices or converting free services into paid subscriptions.
Service providers must notify consumers at least 30 days before a price increase and 14 days before transitioning to paid subscriptions. This law aims to prevent consumers from being unknowingly charged higher fees or converted into paid services without their awareness.
3. Tax Deductions for Fitness and Swimming Facility Expenses
Starting in July 2025, gym and swimming pool membership fees will qualify for a 30% income tax deduction. Employees earning KRW 70 million or less annually can deduct up to KRW 3 million from their taxable income. However, fees for personalized training sessions (PT) are not eligible for deductions. This policy applies only to government-registered fitness facilities.
4. Protection for Businesses Against ID Fraud by Minors
Effective April 23, 2025, businesses such as saunas and lodging facilities will no longer face administrative penalties if minors use fake or altered IDs. This exemption also applies in cases where businesses were unable to verify the minor’s identity due to threats or coercion. Businesses will now have the legal right to request age verification documents before granting entry.
5. Relaxed Safety Standards for Hydrogen Refueling Stations
From May 15, 2025, hydrogen refueling stations can be established in urban areas with reduced distance requirements from surrounding facilities. Installing additional safety features, such as protective walls, will allow stations to bypass previous restrictions. This change is part of South Korea’s broader effort to promote clean energy and accelerate the hydrogen economy.
6. Ban on Post-Driving Alcohol Consumption
A new law, effective June 4, 2025, prohibits individuals from consuming alcohol after driving to avoid alcohol detection during a police sobriety test. Violators will face the same penalties as refusing a sobriety test, including license suspension and criminal charges. This measure strengthens South Korea’s commitment to combating drunk driving.
Source: Republic of Korea Policy Briefing (www.korea.kr)
