Reasons table and tax rate bracket table.
This post covers Korea's Individual Retirement Pension (IRP) rules; Korean law names are translated, and the linked official sources are in Korean.
Search: IRP early withdrawal / Individual Retirement Pension early withdrawal / IRP termination / non-pension withdrawal / IRP early withdrawal reasons / retirement income tax deferred retirement income / other income 15% pension account / pension income withholding 3% 4% 5% / Enforcement Decree of the Employee Retirement Benefit Security Act Article 18 / Income Tax Act Article 20-3 / Enforcement Decree of the Income Tax Act Article 40-2 / National Tax Service pension account withholding rates
Checked: 2026-08-18. Enforcement Decree of the Employee Retirement Benefit Security Act [effective 2026. 3. 24.] [Presidential Decree No. 36220, 2026. 3. 24.]. Income Tax Act [effective 2026. 1. 1.] [Act No. 21221, 2025. 12. 23.]. The cover of the same Act shows effective 2026. 7. 1. (some addenda provisions take effect at different times). The printed headers of Articles 20-3, 14, 21 and 129 cited in this post show 2026. 1. 1. Enforcement Decree of the Income Tax Act [effective 2026. 7. 1.] [Presidential Decree No. 36343, 2026. 5. 22.].
1. The boxes this post covers: the reasons table and the tax rate bracket table
The boxes this post covers are two tables.
- Reasons table: each subparagraph of Article 18(2) of the Enforcement Decree of the Employee Retirement Benefit Security Act (including the Article 2 provisions it cites). (S1, S3)
- Tax rate bracket table: source of income (excluded from taxation / deferred retirement income / tax-credited contributions and investment returns) × type of withdrawal (pension receipt / non-pension withdrawal / medical or unavoidable). The figures are withholding rates from the Income Tax Act, its Enforcement Decree and the National Tax Service table. (S7, S10, S11)
Early withdrawal under the Employee Retirement Benefit Security Act and unavoidable reasons under the Income Tax Act (Enforcement Decree Article 20-2) have different lists. They are not mixed in one table. (S1, S13)
Official names: Individual Retirement Pension (IRP), early withdrawal, termination, non-pension withdrawal
| Box | Original text | Source |
|---|---|---|
| Name of the scheme | Individual retirement pension scheme. The Financial Supervisory Service Integrated Pension Portal gives both: individual retirement pension scheme (IRP: Individual Retirement Pension) | S5, S6, S20 |
| Early withdrawal | If a subscriber falls under any subparagraph, the subscriber may make an early withdrawal of the reserve under Article 24(5) of the Act | S1, S2 |
| Termination | Where a subscriber applies to start pension receipt or to terminate the pension account. The pension account provider submits a statement of pension receipt commencement and termination, as prescribed by Ordinance of the Ministry of Finance and Economy, to the head of the competent tax office by the 10th of the following month | S8 Article 40-2(6) |
| Non-pension withdrawal | "Withdrawal other than pension receipt" | S7 Article 20-3(1)2, S8 Article 40-2(3) |
In one line: IRP ≠ pension savings
Article 20-3 of the Income Tax Act divides pension accounts into accounts bearing the name "pension savings" (pension savings accounts) and accounts set up to receive a retirement pension (retirement pension accounts). Article 40-2(1)2(b) of the Enforcement Decree includes in retirement pension accounts those set up under the individual retirement pension scheme in Article 2 subparagraph 10 of the Employee Retirement Benefit Security Act. (S7, S8)
The issue 11 ISA/pension savings comparison table is not a box in this post.
2. The boxes that open early withdrawal: Enforcement Decree Article 18(2)
Basis: Enforcement Decree of the Employee Retirement Benefit Security Act, effective 2026. 3. 24., Presidential Decree No. 36220. The paragraph wording of Article 18 is marked as last amended 2022. 4. 13. (S1)
The reasons for early withdrawal are subparagraphs 1 to 7 of Article 18(2) of the Enforcement Decree. (S1, S3, S4)
This post covers only Article 18. Early withdrawal from defined contribution (DC) plans falls under Article 22 of the Act and Article 14 of the Enforcement Decree, and the Easy-to-Find Everyday Law Information page on retirement pension interim settlement (S19) describes DC Article 14, so its subparagraph structure and the position of the medical-care 125/1,000 threshold differ. (S18, S19)
Table 1. Each subparagraph of Article 18(2) + original text of the cited Article 2 provisions
| Subpara. | Wording of Enforcement Decree Article 18(2) | Original text of the cited provision | Proviso / limit |
|---|---|---|---|
| 1 | Where Article 2(1)1 applies | Where a subscriber who does not own a house purchases a house in the subscriber's own name | — |
| 2 | Where the first part of Article 2(1)1-2 applies | Where a subscriber who does not own a house bears, for residential purposes, a jeonse deposit under Article 303 of the Civil Act or a deposit under Article 3-2 of the Housing Lease Protection Act | For subscribers to the individual retirement pension scheme under Article 25 of the Act, the number of early withdrawals is limited to once while working at one business |
| 3 | Where Article 2(1)2 applies | Where the subscriber bears medical expenses (medical expenses under Article 118-5(1) and (2) of the Enforcement Decree of the Income Tax Act) for an illness or injury of any of the following persons requiring medical care for 6 months or more: (a) the subscriber; (b) the subscriber's spouse; (c) dependents of the subscriber or the subscriber's spouse (Article 50(1)3 of the Income Tax Act) | For subscribers to the individual retirement pension scheme under Article 25 of the Act, limited to cases where the subscriber bears medical expenses exceeding 125/1,000 of the subscriber's own total annual wages |
| 4 | Where Article 2(1)5 applies (limited to damage from a disaster) | Where a worker's wages decrease because the employer suspends business, or the worker suffers damage from a disaster (Article 3 subparagraph 1 of the Framework Act on the Management of Disasters and Safety), and the case meets the reasons and requirements publicly notified by the Minister of Employment and Labor. Early withdrawal is limited to disaster damage | Wage decreases due to business suspension are excluded from the early-withdrawal wording of this subparagraph (original: "limited to") |
| 5 | (Main text of Article 18) | Where, within 5 years counting back from the date of applying for early withdrawal, the subscriber was declared bankrupt under the Debtor Rehabilitation and Bankruptcy Act | — |
| 6 | (Main text of Article 18) | Where, within 5 years counting back from the date of applying for early withdrawal, the subscriber received a decision to commence individual rehabilitation proceedings under the Debtor Rehabilitation and Bankruptcy Act | — |
| 7 | Where Article 14(1)4 applies | Where a subscriber who took out a loan by offering the right to receive retirement pension benefits as collateral under the latter part of Article 7(2) of the Act withdraws to repay the principal and interest of the loan, and the case falls under the reasons publicly notified by the Minister of Employment and Labor | Article 18(3): the early withdrawal amount is no more than the amount needed to repay the loan principal and interest |
Sources: S1 Article 18(2) and (3), S3 Article 2(1), S4 Article 14(1)4.
Details of the public notices are written only as "reasons publicly notified by the Minister of Employment and Labor." (Original text of Table 1 subparagraphs 4 and 7)
Provisos for Article 25 subscribers (jeonse once, medical care 125/1,000)
Provisos for subscribers to the individual retirement pension scheme under Article 25 of the Act. (S1, S2)
| Subpara. | Original text of the proviso |
|---|---|
| Article 18(2)2 (jeonse) | For subscribers to the individual retirement pension scheme under Article 25 of the Act, the number of early withdrawals is limited to once while working at one business |
| Article 18(2)3 (medical care) | For subscribers to the individual retirement pension scheme under Article 25 of the Act, limited to cases where the subscriber bears medical expenses exceeding 125/1,000 of the subscriber's own total annual wages |
Article 25 of the Act is the "Special Provisions for Businesses Employing Fewer than 10 Persons." (S2)
Article 18(3): withdrawal to repay a secured loan ≤ amount needed to repay principal and interest
Article 18(3): the early withdrawal amount is no more than the amount needed to repay the loan principal and interest. (S1, S4)
Items kept out of the table: collateral-only (university tuition, wedding and funeral costs), wage decreases due to business suspension, tax-law death and emigration
Items whose original text is not in Article 18(2) are not placed in Table 1.
| Commonly attached item | Actual provision | Treatment |
|---|---|---|
| University tuition, wedding costs, funeral costs | Article 2(1)4-2: offering as collateral | Removed from the early-withdrawal table. Not in Table 1 |
| Wage decrease due to business suspension | First part of Article 2(1)5. Article 18(2)4 is limited to disasters | Removed from the early-withdrawal table. Not in Table 1 |
| Death, emigration | Enforcement Decree of the Income Tax Act Article 20-2(1)1(b): tax-law unavoidable reason | Not in Table 1. Only in the unavoidable column of the tax rate table |
| Tax-law medical care of 3 months | Enforcement Decree Article 20-2(1)1(c) | Early withdrawal under the Employee Retirement Benefit Security Act requires 6 months of medical care. Do not mix the tables |
3. The boxes that are not early withdrawal: benefits, termination, non-pension withdrawal
Article 18(1) benefits: pension (age 55, 5 years or more) / lump sum (age 55)
Article 18(1) of the Enforcement Decree of the Employee Retirement Benefit Security Act divides the benefits of the individual retirement pension scheme as follows. (S1)
| Type of benefit | Original text of the eligibility requirement |
|---|---|
| Pension | Aged 55 or older, payment period of 5 years or more |
| Lump sum | A subscriber aged 55 or older who wishes to receive a lump sum |
The three tax-law requirements for pension receipt (Enforcement Decree Article 40-2(3))
Enforcement Decree of the Income Tax Act Article 40-2(3): a withdrawal that meets all of the following subparagraphs, or a withdrawal under Article 20-2(1), is treated as pension receipt. Anything else is a non-pension withdrawal. (S8)
| Subpara. | Original text of the requirement |
|---|---|
| 1 | Withdrawal after applying to start receipt after age 55 |
| 2 | Withdrawal after 5 years have passed since the subscription date. Exception to the 5 years if there is deferred retirement income |
| 3 | Within the pension receipt limit |
Exceeding the limit = deemed a non-pension withdrawal (Enforcement Decree Article 40-2(5))
The amount withdrawn in excess of the limit is deemed to be a non-pension withdrawal. (S8 Article 40-2(5))
Termination: termination application and termination statement under Enforcement Decree Article 40-2(6)
Where a pension account subscriber applies to start pension receipt or to terminate the pension account, the pension account provider must submit a statement of pension receipt commencement and termination, as prescribed by Ordinance of the Ministry of Finance and Economy, to the head of the competent tax office by the 10th of the following month. (S8 Article 40-2(6))
There is no original text in the main body or Enforcement Decree of the Employee Retirement Benefit Security Act that defines "termination" on an equal footing with early withdrawal. Termination is written only under Article 40-2(6) of the tax law. The Employee Retirement Benefit Security Act boxes that can be written are the benefit age in Article 18(1) and each early-withdrawal subparagraph in paragraph (2). (S1, S8)
4. Tax rate bracket table: source × type of withdrawal
The rates are income tax withholding rates. The National Tax Service "Pension income" page table is matched with Article 129. (S10, S11)
The 2026 tax reform proposals not yet in force are not placed in the main table. The 3/100 withholding on lifetime contracts and the 50/100 when the actual year of pension receipt exceeds 20 years, already in force (2026. 1. 1.) under Act No. 21221 of 2025. 12. 23., are current and are written in the main table. National Tax Service guidance footnote: lifetime 3% and over-20-years 50% apply from pension receipts on or after 2026.1.1. (S10, S11)
Table 2. Excluded from taxation / deferred retirement income / tax-credited contributions and investment returns
| Source of income | Provision | Pension receipt | Non-pension withdrawal | Medical purpose / unavoidable (Enforcement Decree Article 20-2 requirements) |
|---|---|---|---|---|
| Amount excluded from taxation | Enforcement Decree Article 40-3(1)1 (amounts not falling under any item of Article 20-3(1)2 of the Act) | Excluded from taxation | Excluded from taxation | Excluded from taxation |
| Deferred retirement income (item (a)) | Article 20-3(1)2(a) and Article 146(2) of the Act | Pension income, separate taxation. Withholding: 70/100 of the non-pension withdrawal withholding rate / 60 (actual year of receipt over 10 and up to 20 years) / 50 (over 20 years). The 50% provision applies from pension receipts on or after 2026.1.1. (S10, S11) | Retirement income, schedular taxation. Withholding rate = deferred retirement income tax / deferred retirement income (S11) | The National Tax Service table keeps non-pension withdrawals of deferred retirement income as retirement income. Article 14(3)9(b) lists only items (b) and (c) |
| Tax-credited contributions (item (b)) + investment returns (item (c)) | Article 20-3(1)2(b) and (c), Article 21(1)21, Article 129(1)5-2 and 6(b) of the Act | Pension income. Age (as of the pension receipt date): under 70, 5/100; 70 or older and under 80, 4/100; 80 or older, 3/100. Lifetime contracts 3/100. If both apply, the lower rate. Lifetime 3% applies to pension receipts on or after 2026.1.1. (previously 4%) (S10, S11) | Other income, separate taxation (Article 14(3)8(b) of the Act). Withholding 15/100 | Separately taxed pension income under Article 14(3)9(b). National Tax Service: "Non-pension withdrawals for medical purposes and unavoidable reasons are taxed as pension income" → the 3, 4 and 5% age-bracket withholding column |
Sources: S7, S9, S10, S11, S12, S13.
Local Tax Act Article 103-13(1): "Where a withholding agent under the Income Tax Act or the Restriction of Special Taxation Act withholds income tax from a resident, it shall, as prescribed by Presidential Decree, specially collect as personal local income tax, at the same time as withholding the income tax, an amount equal to 10/100 of the income tax withheld (where a special taxation provision such as a tax reduction or exemption or heavier taxation applies under the Restriction of Special Taxation Act or other Acts, the income tax after applying it)." (S16)
If pension receipts from items (b) and (c) total more than 15 million won a year, you choose comprehensive taxation or 15% separate taxation (pension receipts on or after 2023.1.1.). (S11 footnote)
Pension receipt: 3, 4, 5%, lifetime 3%, deferred retirement 70, 60, 50
If items (b) and (c) are received as a pension, Article 129(1)5-2 applies: by age bracket, under 70, 5/100; 70 or older and under 80, 4/100; 80 or older, 3/100; lifetime contracts 3/100 (if both apply, the lower rate). (S10, S11)
If item (a) is received as a pension, Article 129(1)5-3 applies: for an actual year of receipt of 10 years or less, 70/100 of the non-pension withdrawal withholding rate; over 10 and up to 20 years, 60/100; over 20 years, 50/100. (S10, S11)
Non-pension withdrawal: deferred retirement income tax / deferred retirement income, other income 15%
For a non-pension withdrawal of deferred retirement income, the National Tax Service table lists the income type as retirement income, the taxation type as schedular taxation, and the withholding rate as "deferred retirement income tax / deferred retirement income." (S11, S21)
Article 21(1)21 of the same Act lists income from non-pension withdrawals of items (b) and (c) as other income, and Article 129(1)6(b) sets its withholding rate at 15/100. (S9, S10)
Medical or unavoidable (Enforcement Decree Article 20-2 list) = separately taxed pension income. House purchase and jeonse are not on this list
Items (b) and (c) withdrawn under the medical-purpose or unavoidable requirements (Enforcement Decree Article 20-2) are separately taxed pension income under Article 14(3)9(b). National Tax Service table footnote: "Non-pension withdrawals for medical purposes and unavoidable reasons are taxed as pension income." (S12, S11, S13)
Article 14(3)9(b) lists only items (b) and (c). Item (a) (deferred retirement income) is not moved into this box. (S12)
House purchase and jeonse are not among the items of Enforcement Decree Article 20-2. Early-withdrawal reasons under the Employee Retirement Benefit Security Act and tax-law unavoidable reasons are not placed in the same box. (S13, S1)
Requirement: submit documents to the pension account provider within 6 months from the date the reason was confirmed. (S13)
| Item | Original text |
|---|---|
| (a) | Natural disaster |
| (b) | Death of the pension account subscriber, or emigration under the Emigration Act |
| (c) | Where the subscriber or the subscriber's dependents (persons eligible for the basic deduction under Article 50 of the Act, with no income limit) need medical care for 3 months or more due to illness or injury |
| (d) | Where the subscriber suffers damage requiring 15 days or more of inpatient treatment due to a disaster under Article 66(1)2 of the Framework Act on the Management of Disasters and Safety |
| (e) | Where the pension account subscriber is declared bankrupt or receives a decision to commence individual rehabilitation proceedings under the Debtor Rehabilitation and Bankruptcy Act |
| (f) | Suspension of business, revocation of business authorization or permission, a resolution to dissolve, or a declaration of bankruptcy of the pension account provider |
| Subparagraph 2 | Where a pension account subscriber who meets Article 40-2(3)1 and 2, in order to withdraw from the pension account medical expenses under Article 118-5(1) and (2) (limited to medical expenses for the subscriber), submits the supporting documents prescribed by Ordinance of the Ministry of Finance and Economy to the pension account provider within 6 months from the date the medical expenses were paid |
Withdrawals under items (c) and (d) are limited to the amount prescribed by Ordinance of the Ministry of Finance and Economy (Enforcement Decree Article 20-2(2)). (S13)
5. Deferred retirement income and personal contributions
Item (a) deferred retirement income = retirement income not withheld under Article 146(2)
Deferred retirement income: Article 20-3(1)2(a) of the Act = retirement income not withheld under Article 146(2). The proviso to Enforcement Decree Article 40-2(3)2 calls the same amount "deferred retirement income." (S7, S8, S14, S21)
Article 146(2): if the money is in a pension account on the retirement date or paid into a pension account / deposited into a pension account within 60 days from the date of receipt → it is not withheld until a non-pension withdrawal. (S14)
Item (b) tax-credited contributions, item (c) investment returns, amounts excluded from taxation (Enforcement Decree Article 40-3)
On the personal-contribution side: item (b) tax-credited contributions and item (c) increases from investment performance. Amounts not falling under any item = amounts excluded from taxation. (S7, S15)
Withdrawal order under Article 40-3: excluded from taxation → deferred retirement income → items (b) to (d)
Order for partial withdrawals: (1) amounts excluded from taxation, (2) deferred retirement income, (3) items (b) through (d). (S15)
6. Where to apply
The relevant retirement pension provider
Early withdrawal applications and documents = the relevant retirement pension provider. "Retirement pension provider" under Article 2 of the Act. (S17, S18)
Tax details = National Tax Service 126
Taxation = Income Tax Act. Original text of the Ministry of Employment and Labor consultation: "For details, contact the National Tax Service (call center 126, no area code)." (S17)
Sources
Checked: 2026-08-18. News, securities-firm blogs and private guides are not sources.
- [S1] Enforcement Decree of the Employee Retirement Benefit Security Act, Article 18 (Eligibility requirements by type of benefit and early withdrawal under the individual retirement pension scheme). Effective 2026. 3. 24., Presidential Decree No. 36220. https://www.law.go.kr/LSW/lsLinkCommonInfo.do?chrClsCd=010202&lspttninfSeq=71031
- [S2] Employee Retirement Benefit Security Act, Article 24 (Establishment and operation of the individual retirement pension scheme, etc.) and Article 25 (Special provisions for businesses employing fewer than 10 persons). Effective 2025. 11. 11., Act No. 21135. https://www.law.go.kr/LSW/lsInfoP.do?lsId=009883&ancYnChk=0
- [S3] Same Enforcement Decree, Article 2 (Reasons for offering retirement pension entitlements as collateral, etc.), paragraph (1) subparagraphs 1, 1-2, 2 and 5. https://www.law.go.kr/LSW/lumLsLinkPop.do?chrClsCd=010202&lspttninfSeq=71007
- [S4] Same Enforcement Decree, Article 14(1)4 and (2) (early withdrawal to repay principal and interest of a secured loan). https://www.law.go.kr/lumLsLinkPop.do?chrClsCd=010202&lspttninfSeq=71026
- [S5] Financial Supervisory Service Integrated Pension Portal: individual retirement pension (IRP) account guide. https://fss.or.kr/fss/lifeplan/bnacJoin/list.do?menuNo=200954
- [S6] Easy-to-Find Everyday Law Information: meaning and setup of the individual retirement pension (restatement of Article 24 of the Act). Source label: Ministry of Employment and Labor, retirement pensions. https://easylaw.go.kr/CSP/CnpClsMain.laf?ccfNo=1&cciNo=2&cnpClsNo=1&csmSeq=999
- [S7] Income Tax Act, Article 20-3 (Pension income), paragraph (1) subparagraph 2. Effective 2026. 1. 1., Act No. 21221. https://www.law.go.kr/lsLawLinkInfo.do?chrClsCd=010202&lsJoLnkSeq=1001059869
- [S8] Enforcement Decree of the Income Tax Act, Article 40-2 (Pension accounts, etc.). Effective 2026. 7. 1., Presidential Decree No. 36343. https://www.law.go.kr/LSW/lsLawLinkInfo.do?chrClsCd=010202&lsId=003956&lsJoLnkSeq=1000656323&print=print
- [S9] Income Tax Act, Article 21 (Other income), paragraph (1) subparagraph 21. https://www.law.go.kr/LSW/lsLawLinkInfo.do?chrClsCd=010202&lsId=001565&lsJoLnkSeq=1000225929&print=print
- [S10] Income Tax Act, Article 129 (Withholding tax rates), paragraph (1) subparagraphs 5-2, 5-3 and 6(b). Table header "Age (as of the pension receipt date)." Printed provision + National Tax Service table. https://www.law.go.kr/LSW/lsLawLinkInfo.do?chrClsCd=010202&lsId=001565&lsJoLnkSeq=1000821176&print=print
- [S11] National Tax Service: Pension income (tables of withholding rates for private pensions and pension accounts). https://www.nts.go.kr/nts/cm/cntnts/cntntsView.do?cntntsId=7888&mi=6608
- [S12] Income Tax Act, Article 14(3)8(b) and 9. https://www.law.go.kr/LSW/lsLawLinkInfo.do?chrClsCd=010202&lsId=001565&lsJoLnkSeq=1000821599&print=print
- [S13] Enforcement Decree of the Income Tax Act, Article 20-2 (Requirements for withdrawals for medical purposes or unavoidable reasons, etc.). https://www.law.go.kr/LSW/lsLawLinkInfo.do?chrClsCd=010202&lsId=003956&lsJoLnkSeq=1000316611&print=print
- [S14] Income Tax Act, Article 146 (Timing and method of withholding on retirement income, etc.), paragraph (2). https://www.law.go.kr/LSW/lsLawLinkInfo.do?chrClsCd=010202&lsId=001565&lsJoLnkSeq=1000226374&print=print
- [S15] Enforcement Decree of the Income Tax Act, Article 40-3 (Withdrawal order for pension accounts, etc.). https://www.law.go.kr/lsLawLinkInfo.do?chrClsCd=010202&lsJoLnkSeq=1001061005
- [S16] Local Tax Act, Article 103-13 (Duty of special collection), paragraph (1). https://www.law.go.kr/LSW/lsLawLinkInfo.do?chrClsCd=010202&lsId=001649&lsJoLnkSeq=1000226093&print=print
- [S17] Ministry of Employment and Labor Quick Online Consultation: early withdrawal applications and supporting documents go to the retirement pension provider; taxation goes to the National Tax Service at 126. https://www.moel.go.kr/minwon/fastcounsel/fastcounselView.do?inetDcssMngId=202511190121528070580
- [S18] Ministry of Employment and Labor Quick Online Consultation: DC falls under Article 22 of the Act and Article 14 of the Enforcement Decree; applications go to the retirement pension provider. https://www.moel.go.kr/minwon/fastcounsel/fastcounselView.do?inetDcssMngId=202508250515398310303
- [S19] Easy-to-Find Everyday Law Information: retirement pension interim settlement (restatement of DC Article 14). Prepared as of 2026. 7. 15. Not the IRP Article 18 main text. https://easylaw.go.kr/CSP/CnpClsMain.laf?ccfNo=2&cciNo=1&cnpClsNo=2&csmSeq=999
- [S20] Financial Supervisory Service Integrated Pension Portal: retirement pension taxation (tax credits). IRP definition and contribution guidance. Not used as the main table for withdrawal tax rates. https://fss.or.kr/fss/main/contents.do?menuNo=201011
- [S21] National Tax Service: Retirement income (explanation of deferred retirement income). https://www.nts.go.kr/nts/cm/cntnts/cntntsView.do?cntntsId=7882&mi=6602