{"content_id":"mvtvydvj9c","slug":"financial-income-health-insurance-premium-guide-korea","locale":"en","schema_type":"Article","category":"how_to","category_name":"How-to","title":"Financial Income and Health Insurance Premiums: Criteria for Employee Subscribers, Local Subscribers, and Dependents","summary":"Financial income such as interest and dividends affects health insurance premiums differently depending on subscriber type. This explains the annual 20 million won threshold for employee subscribers, the annual 10 million won financial income threshold for local subscribers, dependent eligibility requirements, and how to use ISA and voluntary continuation coverage.","author":{"name":"Injoys Editorial Team","url":"https://injoys.com/ko/about"},"key_points":["If an employee subscriber’s non-salary income exceeds 20 million won per year, a monthly income-based premium is generally imposed based on the amount above the threshold.","If a local subscriber’s total annual interest and dividend income exceeds 10 million won, the entire amount of that financial income, rather than only the excess, may be reflected as income when calculating premiums.","Taxable gains from trading domestically listed ETFs that invest in overseas assets are classified as dividend income, while gains from trading overseas-listed ETFs are classified as capital gains.","Gains and losses within an ISA are subject to a different tax system from financial income in regular accounts, so an ISA can be used to manage comprehensive taxation of financial income and health insurance premiums.","For voluntary continuation coverage and dependent eligibility, the application deadline and the requirements for income, assets, and business income must all be checked."],"content_markdown":"An increase in interest and dividends does not mean that everyone’s health insurance premiums rise in the same way. Employee-insured persons, self-employed insured persons, and dependents are subject to different standards, and even the same ETF returns may produce different results depending on how the gains are classified under tax law.\n\nThe following explains the system structure as verified in July 2026. Health insurance premium rates, detailed calculation formulas, tax laws, and dependent eligibility standards may be revised, so before making any actual transaction, retirement, or gift, you should confirm the latest applicable outcome with the National Health Insurance Service and a tax professional.\n\n## Three Types of Eligibility to Distinguish First\n\n| Category | Basic premium structure | Key threshold at which financial income has an impact |\n|---|---|---|\n| Employee-insured person | Monthly remuneration-based premium and monthly income-based premium on certain income other than remuneration | Whether annual income other than remuneration is more than 20 million won |\n| Self-employed insured person | Calculated based on income and property | Whether total annual interest and dividend income is more than 10 million won |\n| Dependent of an employee-insured person | Pays no separate premium but must satisfy income, property, and support requirements | Comprehensive review of total annual income, business income, property tax assessment base, etc. |\n\nIncome for health insurance premium purposes generally includes interest, dividends, business income, employment income, pension income, and other income. However, because the applicable inclusion rates by income type and the treatment of tax-exempt and separately taxed income differ, simply adding up amounts deposited into a bank account may lead to errors.\n\n## Employee-Insured Persons: Annual Income Other Than Remuneration Threshold of 20 Million Won\n\nEmployee-insured persons pay monthly remuneration-based premiums based on their salary. In addition, if annual income other than remuneration—including interest, dividends, business income, employment income, pension income, and other income—is more than 20 million won, an additional monthly income-based premium may apply.\n\n### Basic Calculation Structure\n\nConceptually, the calculation proceeds as follows.\n\n1. Identify annual income other than remuneration by income type.\n2. Apply the inclusion rates prescribed by law.\n3. Apply the annual deduction threshold of 20 million won.\n4. Divide the remaining amount by 12 months.\n5. Apply the health insurance premium rate for the applicable year.\n6. Add the long-term care insurance premium based on the calculated health insurance premium.\n\nFor example, if all income other than remuneration consists of interest and dividends totaling 30 million won annually, under the general structure, the 10 million won remaining after subtracting 20 million won becomes the starting point for calculating the monthly income-based premium. The exact premium varies depending on the premium rate for the applicable year, the period to which the income is attributed, the type of income, and the results of reconciliation.\n\n### Points to Note\n\n- Exceeding the threshold does not mean that an additional premium is charged on the entire 30 million won of income other than remuneration.\n- Employment income, pension income, and other types of income may be assessed differently from interest and dividend income during the premium calculation process.\n- Premiums are reflected after finalized income data from the National Tax Service is linked to the National Health Insurance Service, so there may be a gap between when income is earned and when the premium is billed.\n- Rather than giving up legitimate returns simply because income is close to a threshold, compare after-tax returns after accounting for both taxes and insurance premiums.\n\n## Self-Employed Insured Persons: The 10 Million Won Annual Financial Income Threshold\n\nFor self-employed insured persons, it is important whether the combined annual interest and dividend income is more than 10 million won. If the total is at most 10 million won, that financial income may be excluded from the calculation of self-employed insurance premiums. However, if it is more than 10 million won, the entire amount of the relevant interest and dividend income—not merely the excess—is included.\n\n| Total annual interest and dividend income | General premium treatment |\n|---:|---|\n| At most 10 million won | Financial income is not included in income for self-employed insurance premiums |\n| More than 10 million won | The entire amount of the relevant interest and dividend income is included |\n\nAccordingly, the difference in premium calculations between 10 million won and 10.01 million won may be much larger than the actual difference in income. However, because the final premium must also account for other income and property, the minimum and maximum monthly income amounts, and long-term care insurance premiums, it may not equal the amount obtained by simply multiplying financial income by the premium rate.\n\n### Information Self-Employed Insured Persons Should Review\n\n- Interest payment dates and maturity dates for deposits and bonds\n- Dividends and distributions from domestic and foreign stocks and funds\n- Taxable trading gains from domestically listed foreign-asset ETFs\n- Business, employment, pension, and other income\n- Property tax assessment bases and jointly owned shares\n\nUnlike in the past, vehicle-based premiums for self-employed insured persons were abolished in February 2024. Materials that continue to describe vehicles as a separate assessment factor for self-employed insurance premiums may not reflect the latest system.\n\n## Income Classification Varies by the ETF’s Listing Market\n\nEven when tracking the same foreign index, domestically listed ETFs and overseas-listed ETFs may have their trading gains classified differently under tax law.\n\n| Investment method | General tax classification of trading gains | Impact on health insurance premiums |\n|---|---|---|\n| Domestically listed foreign equity ETF | Taxable amount treated as dividend income | May be included in financial income |\n| ETF listed on an overseas exchange, such as in the United States | Capital gains from foreign stocks | Currently excluded in principle from income used to calculate health insurance premiums |\n| Ordinary domestically listed domestic equity ETF | On-exchange trading gains of individual investors are generally tax-exempt | Ordinary trading gains are not included in financial income |\n\nTrading gains from domestically listed foreign-asset ETFs are not always treated in their entirety as dividend income. The taxable amount may be determined using factors such as the increase in the tax-base price and the actual trading gain.\n\nTrading gains from overseas-listed ETFs are classified as capital gains, and the annual basic deduction and other rules are applied after aggregating gains and losses from foreign stocks. The general tax rate, including local income tax, must be reviewed separately. The fact that capital gains are currently excluded from health insurance premium calculations does not mean that they are tax-free.\n\nRegardless of the account in which assets are held, cash dividends and ETF distributions are, in principle, dividend income. This is why it should not be assumed that direct overseas investment never affects health insurance premiums.\n\n## Managing Financial Income Through an ISA\n\nAn ISA is an account that aggregates gains and losses from multiple financial products held within the account, exempts up to a certain amount from tax, and then applies separate taxation to net profit exceeding that amount. Separately taxed income from an ISA is not included in the aggregate financial income subject to comprehensive taxation in the way that interest and dividends from ordinary accounts are, so an ISA may also be used to manage health insurance premiums.\n\n### Assets That May Be Prioritized for an ISA\n\n- Products that generate interest income, such as deposits and bonds\n- High-dividend stocks and REITs\n- ETFs with large distributions\n- Domestically listed foreign-asset ETFs whose trading gains are treated as dividend income\n\nBy contrast, domestically listed stocks or domestic equity ETFs whose trading gains are tax-exempt even in ordinary accounts may be a lower priority for ISA capacity. However, dividends, the possibility of aggregating gains and losses, the mandatory holding period, and early withdrawal conditions should also be compared.\n\n### ISA Considerations\n\n- ISA enrollment may be restricted if you were subject to comprehensive taxation on financial income at least once during the previous 3 tax periods.\n- Tax-exempt limits and contribution limits may vary depending on the account type and future legislative amendments.\n- Some products are not permitted in an ISA, and stocks and ETFs listed on overseas exchanges cannot be held directly.\n- Transferring ISA maturity proceeds to a pension account may provide additional tax benefits, but the transfer limit and deadline must be confirmed.\n\n## Pension Savings Accounts and IRPs Must Be Examined Separately at the Contribution and Withdrawal Stages\n\nInterest, dividends, and trading gains generated within pension savings accounts and IRPs are not immediately taxed as ordinary financial income. Therefore, during the accumulation and investment stage, these accounts have the effect of deferring comprehensive taxation on financial income and health insurance premiums.\n\nHowever, when money is withdrawn from the account, the treatment of pension income tax, other income tax, and related taxes differs depending on whether the withdrawal qualifies as a pension payment or a non-pension withdrawal. It also cannot be stated conclusively that private pensions are currently reflected in health insurance premiums in the same way as public pensions, and future linkage of income data or system reforms remains possible. It is inaccurate to describe pension accounts as accounts that will never generate health insurance premiums throughout one’s lifetime.\n\n## Voluntary Continuation Coverage for Retirees\n\nAfter retirement, a person who switches to self-employed insured status has premiums calculated based on income and property. If the self-employed insurance premium would be higher, voluntary continuation coverage may be considered.\n\n### Key Requirements\n\n- During the 18 months before retirement, the person must have maintained employee-insured status for a combined period of at least 1 year.\n- The application must be submitted before 2 months have passed from the payment deadline for the first billed self-employed insurance premium.\n- The coverage period is up to 36 months, provided the eligibility requirements continue to be met.\n- The premium is not simply fixed at exactly the same amount as the salary immediately before retirement or the individual’s premium contribution at that time, so a simulation or consultation with the National Health Insurance Service is necessary.\n\nThe application deadline is determined based on the payment deadline for the first self-employed insurance premium, not the date the bill was received. Before applying, compare the voluntary continuation premium with the actual self-employed insurance premium, and also check whether dependent status is available.\n\n## Income and Property Standards for Dependent Eligibility\n\nDependent status is not granted solely because someone is a family member. Both income and property standards must be met along with the support relationship requirement.\n\n### Key Property and Income Standards\n\n| Property tax assessment base | Key income standard |\n|---:|---|\n| At most 540 million won | Other requirements must be met, including total annual income of at most 20 million won |\n| More than 540 million won and at most 900 million won | Total annual income must be at most 10 million won |\n| More than 900 million won | Dependent status is generally unavailable because the property requirement is not met |\n\nThe amount used here is the property tax assessment base, not the home’s market value or officially assessed value itself. Income includes not only interest and dividends but also business, employment, pension, and other income, while separate, stricter requirements apply to business income. A person with business registration must, in principle, have no business income, and even without business registration, the annual business income threshold must be checked. Separate exceptions may apply to persons with disabilities, persons of national merit, and others.\n\nIf a person has a spouse, one spouse’s failure to meet the income requirement may also affect the other spouse’s recognition as a dependent, so reviewing each person’s figures separately is not sufficient.\n\n## Limitations of Joint Ownership and Asset Distribution\n\nIf actual ownership is divided between spouses, each person’s property tax assessment base or financial income may change. However, deciding to convert assets to joint ownership or transfer deposits based solely on health insurance premiums is risky.\n\n- Transferring real estate ownership interests may result in gift tax, acquisition tax, and registration costs.\n- Gift tax issues may arise if the source of funds does not match the actual ownership relationship.\n- The effects of joint ownership on comprehensive real estate holding tax, capital gains tax, and inheritance tax vary depending on factors such as the holding period and number of homes owned.\n- Nominee transactions that merely divide ownership in name while the beneficial owner is someone else do not constitute lawful tax planning.\n- Because dependent eligibility is determined by considering income, property, business income, and support requirements together, dividing property alone does not necessarily preserve eligibility.\n\nAccordingly, asset transfers should be decided only after jointly calculating the reduction in health insurance premiums, transfer costs, taxes, and the future effects on dispositions and inheritance.\n\n## Checklist Before Year-End and Retirement\n\n1. Check the pre-tax amount of this year’s interest and dividends using National Tax Service records and financial institution statements.\n2. Employee-insured persons should check whether their total income other than remuneration is more than 20 million won.\n3. Self-employed insured persons should check whether their combined interest and dividend income is more than 10 million won.\n4. Check whether trading gains from domestically listed foreign-asset ETFs are classified as dividend income.\n5. Review the remaining contribution limits and eligibility requirements for ISAs and pension accounts.\n6. Those planning to retire should compare the estimated self-employed insurance premium with the voluntary continuation premium.\n7. Dependents should review the property tax assessment base, total income, and business income requirements together.\n8. Any adjustment to maturity dates or the timing of profit realization should be made within the scope of ordinary transactions after considering product terms and market risks.\n\n## Conclusion\n\nThe key to managing health insurance premiums is not avoiding returns themselves but accurately identifying the insured-person category and income classification. Important thresholds are 20 million won in income other than remuneration for employee-insured persons and 10 million won in financial income for self-employed insured persons, while dependents must simultaneously meet the property, total income, and business income requirements.\n\nISAs, pension accounts, and voluntary continuation coverage are systems that may be used within the scope prescribed by law. However, direct overseas investment, joint ownership, and asset transfers among family members may involve other taxes and costs, so their advantages and disadvantages should not be judged based on health insurance premiums alone.","content_html":"\u003cp\u003eAn increase in interest and dividends does not mean that everyone’s health insurance premiums rise in the same way. Employee-insured persons, self-employed insured persons, and dependents are subject to different standards, and even the same ETF returns may produce different results depending on how the gains are classified under tax law.\u003c/p\u003e\n\u003cp\u003eThe following explains the system structure as verified in July 2026. Health insurance premium rates, detailed calculation formulas, tax laws, and dependent eligibility standards may be revised, so before making any actual transaction, retirement, or gift, you should confirm the latest applicable outcome with the National Health Insurance Service and a tax professional.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#three-types-of-eligibility-to-distinguish-first\" class=\"anchor\" id=\"three-types-of-eligibility-to-distinguish-first\"\u003e\u003c/a\u003eThree Types of Eligibility to Distinguish First\u003c/h2\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eCategory\u003c/th\u003e\n\u003cth\u003eBasic premium structure\u003c/th\u003e\n\u003cth\u003eKey threshold at which financial income has an impact\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003eEmployee-insured person\u003c/td\u003e\n\u003ctd data-label=\"Basic premium structure\"\u003eMonthly remuneration-based premium and monthly income-based premium on certain income other than remuneration\u003c/td\u003e\n\u003ctd data-label=\"Key threshold at which financial income has an impact\"\u003eWhether annual income other than remuneration is more than 20 million won\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003eSelf-employed insured person\u003c/td\u003e\n\u003ctd data-label=\"Basic premium structure\"\u003eCalculated based on income and property\u003c/td\u003e\n\u003ctd data-label=\"Key threshold at which financial income has an impact\"\u003eWhether total annual interest and dividend income is more than 10 million won\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Category\"\u003eDependent of an employee-insured person\u003c/td\u003e\n\u003ctd data-label=\"Basic premium structure\"\u003ePays no separate premium but must satisfy income, property, and support requirements\u003c/td\u003e\n\u003ctd data-label=\"Key threshold at which financial income has an impact\"\u003eComprehensive review of total annual income, business income, property tax assessment base, etc.\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eIncome for health insurance premium purposes generally includes interest, dividends, business income, employment income, pension income, and other income. However, because the applicable inclusion rates by income type and the treatment of tax-exempt and separately taxed income differ, simply adding up amounts deposited into a bank account may lead to errors.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#employee-insured-persons-annual-income-other-than-remuneration-threshold-of-20-million-won\" class=\"anchor\" id=\"employee-insured-persons-annual-income-other-than-remuneration-threshold-of-20-million-won\"\u003e\u003c/a\u003eEmployee-Insured Persons: Annual Income Other Than Remuneration Threshold of 20 Million Won\u003c/h2\u003e\n\u003cp\u003eEmployee-insured persons pay monthly remuneration-based premiums based on their salary. In addition, if annual income other than remuneration—including interest, dividends, business income, employment income, pension income, and other income—is more than 20 million won, an additional monthly income-based premium may apply.\u003c/p\u003e\n\u003ch3\u003e\n\u003ca href=\"#basic-calculation-structure\" class=\"anchor\" id=\"basic-calculation-structure\"\u003e\u003c/a\u003eBasic Calculation Structure\u003c/h3\u003e\n\u003cp\u003eConceptually, the calculation proceeds as follows.\u003c/p\u003e\n\u003col\u003e\n\u003cli\u003eIdentify annual income other than remuneration by income type.\u003c/li\u003e\n\u003cli\u003eApply the inclusion rates prescribed by law.\u003c/li\u003e\n\u003cli\u003eApply the annual deduction threshold of 20 million won.\u003c/li\u003e\n\u003cli\u003eDivide the remaining amount by 12 months.\u003c/li\u003e\n\u003cli\u003eApply the health insurance premium rate for the applicable year.\u003c/li\u003e\n\u003cli\u003eAdd the long-term care insurance premium based on the calculated health insurance premium.\u003c/li\u003e\n\u003c/ol\u003e\n\u003cp\u003eFor example, if all income other than remuneration consists of interest and dividends totaling 30 million won annually, under the general structure, the 10 million won remaining after subtracting 20 million won becomes the starting point for calculating the monthly income-based premium. The exact premium varies depending on the premium rate for the applicable year, the period to which the income is attributed, the type of income, and the results of reconciliation.\u003c/p\u003e\n\u003ch3\u003e\n\u003ca href=\"#points-to-note\" class=\"anchor\" id=\"points-to-note\"\u003e\u003c/a\u003ePoints to Note\u003c/h3\u003e\n\u003cul\u003e\n\u003cli\u003eExceeding the threshold does not mean that an additional premium is charged on the entire 30 million won of income other than remuneration.\u003c/li\u003e\n\u003cli\u003eEmployment income, pension income, and other types of income may be assessed differently from interest and dividend income during the premium calculation process.\u003c/li\u003e\n\u003cli\u003ePremiums are reflected after finalized income data from the National Tax Service is linked to the National Health Insurance Service, so there may be a gap between when income is earned and when the premium is billed.\u003c/li\u003e\n\u003cli\u003eRather than giving up legitimate returns simply because income is close to a threshold, compare after-tax returns after accounting for both taxes and insurance premiums.\u003c/li\u003e\n\u003c/ul\u003e\n\u003ch2\u003e\n\u003ca href=\"#self-employed-insured-persons-the-10-million-won-annual-financial-income-threshold\" class=\"anchor\" id=\"self-employed-insured-persons-the-10-million-won-annual-financial-income-threshold\"\u003e\u003c/a\u003eSelf-Employed Insured Persons: The 10 Million Won Annual Financial Income Threshold\u003c/h2\u003e\n\u003cp\u003eFor self-employed insured persons, it is important whether the combined annual interest and dividend income is more than 10 million won. If the total is at most 10 million won, that financial income may be excluded from the calculation of self-employed insurance premiums. However, if it is more than 10 million won, the entire amount of the relevant interest and dividend income—not merely the excess—is included.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eTotal annual interest and dividend income\u003c/th\u003e\n\u003cth\u003eGeneral premium treatment\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Total annual interest and dividend income\"\u003eAt most 10 million won\u003c/td\u003e\n\u003ctd data-label=\"General premium treatment\"\u003eFinancial income is not included in income for self-employed insurance premiums\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Total annual interest and dividend income\"\u003eMore than 10 million won\u003c/td\u003e\n\u003ctd data-label=\"General premium treatment\"\u003eThe entire amount of the relevant interest and dividend income is included\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eAccordingly, the difference in premium calculations between 10 million won and 10.01 million won may be much larger than the actual difference in income. However, because the final premium must also account for other income and property, the minimum and maximum monthly income amounts, and long-term care insurance premiums, it may not equal the amount obtained by simply multiplying financial income by the premium rate.\u003c/p\u003e\n\u003ch3\u003e\n\u003ca href=\"#information-self-employed-insured-persons-should-review\" class=\"anchor\" id=\"information-self-employed-insured-persons-should-review\"\u003e\u003c/a\u003eInformation Self-Employed Insured Persons Should Review\u003c/h3\u003e\n\u003cul\u003e\n\u003cli\u003eInterest payment dates and maturity dates for deposits and bonds\u003c/li\u003e\n\u003cli\u003eDividends and distributions from domestic and foreign stocks and funds\u003c/li\u003e\n\u003cli\u003eTaxable trading gains from domestically listed foreign-asset ETFs\u003c/li\u003e\n\u003cli\u003eBusiness, employment, pension, and other income\u003c/li\u003e\n\u003cli\u003eProperty tax assessment bases and jointly owned shares\u003c/li\u003e\n\u003c/ul\u003e\n\u003cp\u003eUnlike in the past, vehicle-based premiums for self-employed insured persons were abolished in February 2024. Materials that continue to describe vehicles as a separate assessment factor for self-employed insurance premiums may not reflect the latest system.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#income-classification-varies-by-the-etfs-listing-market\" class=\"anchor\" id=\"income-classification-varies-by-the-etfs-listing-market\"\u003e\u003c/a\u003eIncome Classification Varies by the ETF’s Listing Market\u003c/h2\u003e\n\u003cp\u003eEven when tracking the same foreign index, domestically listed ETFs and overseas-listed ETFs may have their trading gains classified differently under tax law.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eInvestment method\u003c/th\u003e\n\u003cth\u003eGeneral tax classification of trading gains\u003c/th\u003e\n\u003cth\u003eImpact on health insurance premiums\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Investment method\"\u003eDomestically listed foreign equity ETF\u003c/td\u003e\n\u003ctd data-label=\"General tax classification of trading gains\"\u003eTaxable amount treated as dividend income\u003c/td\u003e\n\u003ctd data-label=\"Impact on health insurance premiums\"\u003eMay be included in financial income\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Investment method\"\u003eETF listed on an overseas exchange, such as in the United States\u003c/td\u003e\n\u003ctd data-label=\"General tax classification of trading gains\"\u003eCapital gains from foreign stocks\u003c/td\u003e\n\u003ctd data-label=\"Impact on health insurance premiums\"\u003eCurrently excluded in principle from income used to calculate health insurance premiums\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Investment method\"\u003eOrdinary domestically listed domestic equity ETF\u003c/td\u003e\n\u003ctd data-label=\"General tax classification of trading gains\"\u003eOn-exchange trading gains of individual investors are generally tax-exempt\u003c/td\u003e\n\u003ctd data-label=\"Impact on health insurance premiums\"\u003eOrdinary trading gains are not included in financial income\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eTrading gains from domestically listed foreign-asset ETFs are not always treated in their entirety as dividend income. The taxable amount may be determined using factors such as the increase in the tax-base price and the actual trading gain.\u003c/p\u003e\n\u003cp\u003eTrading gains from overseas-listed ETFs are classified as capital gains, and the annual basic deduction and other rules are applied after aggregating gains and losses from foreign stocks. The general tax rate, including local income tax, must be reviewed separately. The fact that capital gains are currently excluded from health insurance premium calculations does not mean that they are tax-free.\u003c/p\u003e\n\u003cp\u003eRegardless of the account in which assets are held, cash dividends and ETF distributions are, in principle, dividend income. This is why it should not be assumed that direct overseas investment never affects health insurance premiums.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#managing-financial-income-through-an-isa\" class=\"anchor\" id=\"managing-financial-income-through-an-isa\"\u003e\u003c/a\u003eManaging Financial Income Through an ISA\u003c/h2\u003e\n\u003cp\u003eAn ISA is an account that aggregates gains and losses from multiple financial products held within the account, exempts up to a certain amount from tax, and then applies separate taxation to net profit exceeding that amount. Separately taxed income from an ISA is not included in the aggregate financial income subject to comprehensive taxation in the way that interest and dividends from ordinary accounts are, so an ISA may also be used to manage health insurance premiums.\u003c/p\u003e\n\u003ch3\u003e\n\u003ca href=\"#assets-that-may-be-prioritized-for-an-isa\" class=\"anchor\" id=\"assets-that-may-be-prioritized-for-an-isa\"\u003e\u003c/a\u003eAssets That May Be Prioritized for an ISA\u003c/h3\u003e\n\u003cul\u003e\n\u003cli\u003eProducts that generate interest income, such as deposits and bonds\u003c/li\u003e\n\u003cli\u003eHigh-dividend stocks and REITs\u003c/li\u003e\n\u003cli\u003eETFs with large distributions\u003c/li\u003e\n\u003cli\u003eDomestically listed foreign-asset ETFs whose trading gains are treated as dividend income\u003c/li\u003e\n\u003c/ul\u003e\n\u003cp\u003eBy contrast, domestically listed stocks or domestic equity ETFs whose trading gains are tax-exempt even in ordinary accounts may be a lower priority for ISA capacity. However, dividends, the possibility of aggregating gains and losses, the mandatory holding period, and early withdrawal conditions should also be compared.\u003c/p\u003e\n\u003ch3\u003e\n\u003ca href=\"#isa-considerations\" class=\"anchor\" id=\"isa-considerations\"\u003e\u003c/a\u003eISA Considerations\u003c/h3\u003e\n\u003cul\u003e\n\u003cli\u003eISA enrollment may be restricted if you were subject to comprehensive taxation on financial income at least once during the previous 3 tax periods.\u003c/li\u003e\n\u003cli\u003eTax-exempt limits and contribution limits may vary depending on the account type and future legislative amendments.\u003c/li\u003e\n\u003cli\u003eSome products are not permitted in an ISA, and stocks and ETFs listed on overseas exchanges cannot be held directly.\u003c/li\u003e\n\u003cli\u003eTransferring ISA maturity proceeds to a pension account may provide additional tax benefits, but the transfer limit and deadline must be confirmed.\u003c/li\u003e\n\u003c/ul\u003e\n\u003ch2\u003e\n\u003ca href=\"#pension-savings-accounts-and-irps-must-be-examined-separately-at-the-contribution-and-withdrawal-stages\" class=\"anchor\" id=\"pension-savings-accounts-and-irps-must-be-examined-separately-at-the-contribution-and-withdrawal-stages\"\u003e\u003c/a\u003ePension Savings Accounts and IRPs Must Be Examined Separately at the Contribution and Withdrawal Stages\u003c/h2\u003e\n\u003cp\u003eInterest, dividends, and trading gains generated within pension savings accounts and IRPs are not immediately taxed as ordinary financial income. Therefore, during the accumulation and investment stage, these accounts have the effect of deferring comprehensive taxation on financial income and health insurance premiums.\u003c/p\u003e\n\u003cp\u003eHowever, when money is withdrawn from the account, the treatment of pension income tax, other income tax, and related taxes differs depending on whether the withdrawal qualifies as a pension payment or a non-pension withdrawal. It also cannot be stated conclusively that private pensions are currently reflected in health insurance premiums in the same way as public pensions, and future linkage of income data or system reforms remains possible. It is inaccurate to describe pension accounts as accounts that will never generate health insurance premiums throughout one’s lifetime.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#voluntary-continuation-coverage-for-retirees\" class=\"anchor\" id=\"voluntary-continuation-coverage-for-retirees\"\u003e\u003c/a\u003eVoluntary Continuation Coverage for Retirees\u003c/h2\u003e\n\u003cp\u003eAfter retirement, a person who switches to self-employed insured status has premiums calculated based on income and property. If the self-employed insurance premium would be higher, voluntary continuation coverage may be considered.\u003c/p\u003e\n\u003ch3\u003e\n\u003ca href=\"#key-requirements\" class=\"anchor\" id=\"key-requirements\"\u003e\u003c/a\u003eKey Requirements\u003c/h3\u003e\n\u003cul\u003e\n\u003cli\u003eDuring the 18 months before retirement, the person must have maintained employee-insured status for a combined period of at least 1 year.\u003c/li\u003e\n\u003cli\u003eThe application must be submitted before 2 months have passed from the payment deadline for the first billed self-employed insurance premium.\u003c/li\u003e\n\u003cli\u003eThe coverage period is up to 36 months, provided the eligibility requirements continue to be met.\u003c/li\u003e\n\u003cli\u003eThe premium is not simply fixed at exactly the same amount as the salary immediately before retirement or the individual’s premium contribution at that time, so a simulation or consultation with the National Health Insurance Service is necessary.\u003c/li\u003e\n\u003c/ul\u003e\n\u003cp\u003eThe application deadline is determined based on the payment deadline for the first self-employed insurance premium, not the date the bill was received. Before applying, compare the voluntary continuation premium with the actual self-employed insurance premium, and also check whether dependent status is available.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#income-and-property-standards-for-dependent-eligibility\" class=\"anchor\" id=\"income-and-property-standards-for-dependent-eligibility\"\u003e\u003c/a\u003eIncome and Property Standards for Dependent Eligibility\u003c/h2\u003e\n\u003cp\u003eDependent status is not granted solely because someone is a family member. Both income and property standards must be met along with the support relationship requirement.\u003c/p\u003e\n\u003ch3\u003e\n\u003ca href=\"#key-property-and-income-standards\" class=\"anchor\" id=\"key-property-and-income-standards\"\u003e\u003c/a\u003eKey Property and Income Standards\u003c/h3\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eProperty tax assessment base\u003c/th\u003e\n\u003cth\u003eKey income standard\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Property tax assessment base\"\u003eAt most 540 million won\u003c/td\u003e\n\u003ctd data-label=\"Key income standard\"\u003eOther requirements must be met, including total annual income of at most 20 million won\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Property tax assessment base\"\u003eMore than 540 million won and at most 900 million won\u003c/td\u003e\n\u003ctd data-label=\"Key income standard\"\u003eTotal annual income must be at most 10 million won\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Property tax assessment base\"\u003eMore than 900 million won\u003c/td\u003e\n\u003ctd data-label=\"Key income standard\"\u003eDependent status is generally unavailable because the property requirement is not met\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eThe amount used here is the property tax assessment base, not the home’s market value or officially assessed value itself. Income includes not only interest and dividends but also business, employment, pension, and other income, while separate, stricter requirements apply to business income. A person with business registration must, in principle, have no business income, and even without business registration, the annual business income threshold must be checked. Separate exceptions may apply to persons with disabilities, persons of national merit, and others.\u003c/p\u003e\n\u003cp\u003eIf a person has a spouse, one spouse’s failure to meet the income requirement may also affect the other spouse’s recognition as a dependent, so reviewing each person’s figures separately is not sufficient.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#limitations-of-joint-ownership-and-asset-distribution\" class=\"anchor\" id=\"limitations-of-joint-ownership-and-asset-distribution\"\u003e\u003c/a\u003eLimitations of Joint Ownership and Asset Distribution\u003c/h2\u003e\n\u003cp\u003eIf actual ownership is divided between spouses, each person’s property tax assessment base or financial income may change. However, deciding to convert assets to joint ownership or transfer deposits based solely on health insurance premiums is risky.\u003c/p\u003e\n\u003cul\u003e\n\u003cli\u003eTransferring real estate ownership interests may result in gift tax, acquisition tax, and registration costs.\u003c/li\u003e\n\u003cli\u003eGift tax issues may arise if the source of funds does not match the actual ownership relationship.\u003c/li\u003e\n\u003cli\u003eThe effects of joint ownership on comprehensive real estate holding tax, capital gains tax, and inheritance tax vary depending on factors such as the holding period and number of homes owned.\u003c/li\u003e\n\u003cli\u003eNominee transactions that merely divide ownership in name while the beneficial owner is someone else do not constitute lawful tax planning.\u003c/li\u003e\n\u003cli\u003eBecause dependent eligibility is determined by considering income, property, business income, and support requirements together, dividing property alone does not necessarily preserve eligibility.\u003c/li\u003e\n\u003c/ul\u003e\n\u003cp\u003eAccordingly, asset transfers should be decided only after jointly calculating the reduction in health insurance premiums, transfer costs, taxes, and the future effects on dispositions and inheritance.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#checklist-before-year-end-and-retirement\" class=\"anchor\" id=\"checklist-before-year-end-and-retirement\"\u003e\u003c/a\u003eChecklist Before Year-End and Retirement\u003c/h2\u003e\n\u003col\u003e\n\u003cli\u003eCheck the pre-tax amount of this year’s interest and dividends using National Tax Service records and financial institution statements.\u003c/li\u003e\n\u003cli\u003eEmployee-insured persons should check whether their total income other than remuneration is more than 20 million won.\u003c/li\u003e\n\u003cli\u003eSelf-employed insured persons should check whether their combined interest and dividend income is more than 10 million won.\u003c/li\u003e\n\u003cli\u003eCheck whether trading gains from domestically listed foreign-asset ETFs are classified as dividend income.\u003c/li\u003e\n\u003cli\u003eReview the remaining contribution limits and eligibility requirements for ISAs and pension accounts.\u003c/li\u003e\n\u003cli\u003eThose planning to retire should compare the estimated self-employed insurance premium with the voluntary continuation premium.\u003c/li\u003e\n\u003cli\u003eDependents should review the property tax assessment base, total income, and business income requirements together.\u003c/li\u003e\n\u003cli\u003eAny adjustment to maturity dates or the timing of profit realization should be made within the scope of ordinary transactions after considering product terms and market risks.\u003c/li\u003e\n\u003c/ol\u003e\n\u003ch2\u003e\n\u003ca href=\"#conclusion\" class=\"anchor\" id=\"conclusion\"\u003e\u003c/a\u003eConclusion\u003c/h2\u003e\n\u003cp\u003eThe key to managing health insurance premiums is not avoiding returns themselves but accurately identifying the insured-person category and income classification. Important thresholds are 20 million won in income other than remuneration for employee-insured persons and 10 million won in financial income for self-employed insured persons, while dependents must simultaneously meet the property, total income, and business income requirements.\u003c/p\u003e\n\u003cp\u003eISAs, pension accounts, and voluntary continuation coverage are systems that may be used within the scope prescribed by law. However, direct overseas investment, joint ownership, and asset transfers among family members may involve other taxes and costs, so their advantages and disadvantages should not be judged based on health insurance premiums alone.\u003c/p\u003e\n","tags":["ISA","health insurance premium","financial income","dependent","retirement planning"],"faqs":[{"question":"If an employee-insured person's financial income exceeds KRW 20 million, are health insurance premiums imposed on the entire amount?","answer":"No. If an employee-insured person's annual income other than remuneration exceeds KRW 20 million, the monthly income-based insurance premium is generally calculated based on the excess after deducting KRW 20 million. However, business, employment, pension, and other income may be combined in addition to interest and dividends, and the method of inclusion differs by income type."},{"question":"If a self-employed insured person's interest and dividends slightly exceed KRW 10 million, is only the excess amount included?","answer":"No. If the total annual interest and dividend income exceeds KRW 10 million, generally the entire amount of that financial income, not just the excess, is included as income when calculating the self-employed insurance premium. Because other income and property are also included in the calculation, the actual increase should be confirmed with the National Health Insurance Service."},{"question":"Are capital gains from trading U.S.-listed ETFs included in health insurance premiums?","answer":"Currently, capital gains from trading overseas-listed ETFs are classified as capital gains from foreign stocks and, in principle, are not included as income when calculating health insurance premiums. However, capital gains tax must be reported and paid separately, and distributions received from ETFs are dividend income, so they may affect health insurance premiums."},{"question":"Are capital gains from trading a domestically listed S\u0026P 500 ETF considered financial income?","answer":"Taxable capital gains from trading domestically listed foreign equity ETFs are generally treated as dividend income. Therefore, they may be included when determining comprehensive taxation of financial income and health insurance premium thresholds. The actual taxable amount may be determined by taking into account factors such as the actual trading gain and the increase in the tax base reference price."},{"question":"Are interest and dividends received in an ISA included in health insurance premiums?","answer":"Net profits within an ISA are tax-exempt up to a certain amount, and the excess is taxed separately, so they are not included in the aggregate amount subject to general comprehensive taxation of financial income. Accordingly, unlike interest and dividends in a regular account, they may be advantageous for managing health insurance premiums, but eligibility, contribution limits, and the mandatory enrollment period must be checked."},{"question":"Are returns from pension savings and IRP accounts exempt from health insurance premiums for life?","answer":"That cannot be stated definitively. While funds are being managed within the accounts, they are not immediately taxed as general financial income, but at the withdrawal stage, the nature of the income and the taxes differ depending on whether the funds are received as a pension. The rules for including private pensions in health insurance premiums may also change in the future."},{"question":"By when must I apply for voluntarily continued coverage after retirement?","answer":"You must apply before two months have elapsed from the payment due date of the first self-employed insurance premium bill you receive. You must have been covered as an employee-insured person for a total of at least one year during the 18 months before retirement, and the coverage period is up to 36 months, provided that the requirements continue to be met."},{"question":"Can I retain dependent eligibility if I change the ownership of my home to joint ownership with my spouse?","answer":"Although the property tax base for each individual may decrease according to their ownership share, dependent eligibility is not automatically guaranteed. Total income, business income, spousal requirements, and the dependency relationship are also reviewed, and gift tax, acquisition tax, and registration costs may arise during the transfer of ownership shares."},{"question":"Are health insurance premiums currently imposed on vehicles owned by self-employed insured persons?","answer":"The imposition of self-employed health insurance premiums on vehicles was abolished in February 2024. Self-employed insurance premiums are currently calculated mainly based on income and property, so caution is needed regarding older materials that continue to describe vehicles as a separate assessment factor."}],"sources":[{"url":"https://www.nhis.or.kr/","title":"National Health Insurance Service","type":"source"},{"url":"https://www.law.go.kr/법령/국민건강보험법","title":"National Health Insurance Act","type":"source"},{"url":"https://www.law.go.kr/법령/국민건강보험법시행령","title":"Enforcement Decree of the National Health Insurance Act","type":"source"},{"url":"https://www.law.go.kr/법령/소득세법","title":"Income Tax Act","type":"source"},{"url":"https://www.law.go.kr/법령/조세특례제한법","title":"Restriction of Special Taxation Act","type":"source"}],"images":[{"id":362,"url":"https://injoys.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsiZGF0YSI6NDI3NCwicHVyIjoiYmxvYl9pZCJ9fQ==--aa81b92e37082945be36224448c43ab0549eb1d3/ai-2bdadb56.webp","is_representative":true,"generation_method":"ai_image","license":"ai_generated","mime_type":"image/webp","translations":{"ko":{"alt":"사람과 주택, 동전, 의료 방패, 열린 문, 저울을 배치한 건강보험료 기준 일러스트","caption":"금융소득과 재산, 건강보험 보장 간의 관계를 상징적으로 보여준다.","description":null},"en":{"alt":"Health insurance infographic with people, a house, coins, medical shield, open gates, and balance scales","caption":"The illustration symbolizes how financial income and assets relate to health insurance contributions.","description":null},"ja":{"alt":"人物、住宅、硬貨、医療の盾、開いた門、天秤を配置した健康保険料の図解","caption":"金融所得や資産と健康保険料の関係を象徴的に表している。","description":null},"es":{"alt":"Infografía de seguro médico con personas, casa, monedas, escudo sanitario, puertas y balanzas","caption":"La ilustración representa la relación entre los ingresos financieros, el patrimonio y las cuotas del seguro médico.","description":null},"id":{"alt":"Infografik asuransi kesehatan dengan orang, rumah, koin, perisai medis, gerbang, dan timbangan","caption":"Ilustrasi ini menggambarkan kaitan pendapatan finansial dan aset dengan iuran asuransi kesehatan.","description":null},"pt":{"alt":"Infográfico de seguro de saúde com pessoas, casa, moedas, escudo médico, portões e balanças","caption":"A ilustração simboliza a relação entre renda financeira, patrimônio e contribuições ao seguro de saúde.","description":null},"zh-hant":{"alt":"以人物、住宅、硬幣、醫療盾牌、開放拱門與天平呈現健保費標準的插圖","caption":"插圖象徵金融所得與資產如何影響健康保險費。","description":null},"de":{"alt":"Krankenversicherungs-Grafik mit Personen, Haus, Münzen, Gesundheitsschild, Toren und Waagen","caption":"Die Illustration zeigt symbolisch den Zusammenhang zwischen Kapitaleinkünften, Vermögen und Krankenversicherungsbeiträgen.","description":null}}},{"id":363,"url":"https://injoys.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsiZGF0YSI6NDI4MCwicHVyIjoiYmxvYl9pZCJ9fQ==--07f7040e53dedcff54ff51f588c23359a3f2d93e/ai-220e3d2c.webp","is_representative":false,"generation_method":"ai_image","license":"ai_generated","mime_type":"image/webp","translations":{"ko":{"alt":"건강보험 방패를 중심으로 동전과 지폐, 은행, 병원, 가족, 지구본이 연결된 금융 인포그래픽","caption":"금융 자산과 가족 형태, 건강보험의 연관성을 시각화한 그림입니다.","description":null},"en":{"alt":"Financial infographic linking a health insurance shield with money, a bank, hospital, families, and globe","caption":"The illustration connects financial assets and household types with health insurance.","description":null},"ja":{"alt":"健康保険の盾を中心に、硬貨や紙幣、銀行、病院、家族、地球を結んだ金融図解","caption":"金融資産や世帯の形と健康保険の関係を視覚的に表しています。","description":null},"es":{"alt":"Infografía con un escudo médico conectado a dinero, banco, hospital, familias y un globo terráqueo","caption":"La ilustración relaciona los activos financieros y los tipos de hogar con el seguro de salud.","description":null},"id":{"alt":"Infografik perisai asuransi kesehatan yang terhubung dengan uang, bank, rumah sakit, keluarga, dan globe","caption":"Ilustrasi ini mengaitkan aset keuangan dan jenis rumah tangga dengan asuransi kesehatan.","description":null},"pt":{"alt":"Infográfico com escudo de saúde ligado a dinheiro, banco, hospital, famílias e globo terrestre","caption":"A ilustração relaciona ativos financeiros e tipos de família ao seguro de saúde.","description":null},"zh-hant":{"alt":"以健康保險盾牌為中心，連結硬幣、紙鈔、銀行、醫院、家庭與地球的金融資訊圖","caption":"此圖呈現金融資產、家庭類型與健康保險之間的關聯。","description":null},"de":{"alt":"Finanzinfografik mit Gesundheitsschutzschild, Geld, Bank, Krankenhaus, Familien und Globus","caption":"Die Grafik veranschaulicht den Zusammenhang zwischen Finanzvermögen, Haushaltsformen und Krankenversicherung.","description":null}}}],"published_at":"2026-07-30T17:06:23+09:00","updated_at":"2026-07-30T17:06:23+09:00","license":"cc_by","translation_status":"reviewed","available_locales":["ko","en","ja","es"],"data_locales":["ko","en","ja","es","id","pt","zh-hant","de"],"url":"https://injoys.com/en/articles/financial-income-health-insurance-premium-guide-korea"}