The rules
- 15% of medical spending above 3% of gross salary comes straight off your tax.
- General medical expenses are capped at 7 million KRW; spending for yourself, family aged 65+, disabled family and some other groups has no cap.
- Insurance reimbursements must be subtracted. Cosmetic procedures do not count, and neither does spending before you started or after you left the job.
- Glasses and contact lenses count up to 500,000 KRW per person per year.
- You can claim the card deduction and the medical credit on the same payment.
Medical credit vs standard credit
Employees who claim no special tax credits (insurance, medical, education, donations) get a standard tax credit of 130,000 KRW. Claiming the medical credit replaces it, so a medical credit below 130,000 KRW is a loss when you have no other special credits.
| Gross 40M KRW (threshold 1.2M) | Medical credit | App result |
|---|---|---|
| Medical 1.0M | 0 (below threshold) | About zero (standard credit kept) |
| Medical 1.5M | 45,000 KRW | Owe about 94,000 KRW |
| Medical 3.0M | 270,000 KRW | Refund about 154,000 KRW |
| Medical 5.0M | 570,000 KRW | Refund about 484,000 KRW |
The 1.5M row is negative because the app drops the standard credit as soon as any medical credit appears. In the real settlement you take whichever is better, so in the app calculate once with medical expenses and once with zero and use the better figure.
Treatment at home abroad
Medical expenses paid at hospitals outside Korea are excluded. If you have dental work or a check-up during a trip home, it will not count toward the threshold. Spending at Korean clinics and pharmacies usually appears in the Hometax simplified service.
Checking the threshold in the app
Enter medical expenses
Under “Housing savings / medical”, enter medical spending minus insurance payouts in units of 10,000 KRW. The app treats everything as general medical expenses (15%, 7M cap).
Re-read the rule on the Guide tab
The Guide tab summarises the 3% threshold and 15% rate. In the breakdown, read the “Medical tax credit” and “Standard tax credit” lines together.
The app’s English screens show amounts with the Korean won sign, and the saved-scenario card keeps a few Korean labels in the current version.
FAQ
A clinic bill is missing from the simplified data. What now?
The NTS runs a reporting centre for missing medical expenses right after the simplified service opens (until 17 January in 2026). Otherwise hand the receipt to HR directly.
Is IVF treatment also 15%?
Infertility treatment and care for premature or congenitally ill infants have higher rates. The app uses 15% only, so your real refund may be larger.
Sources: TaxWatch, medical expense credit explained (Korean) · Korea.kr, simplified service opens Jan 15 (Korean)
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