The National Tax Service announced that it will distribute 1.8 trillion won in earned income and child benefits to 1.92 million low-income households.
On June 25, the agency confirmed that it would make a lump-sum payment for the second half of the 2025 earned income and child benefits. The total amount allocated is 1.8087 trillion won, targeting households with only earned income.
Of the total, 1.6475 trillion won will be distributed as earned income tax credits to 1.79 million households, while 161.2 billion won will go to 130,000 households as child benefits. Including the 553.3 billion won already paid for the first half of 2025 last December, the total benefits for the first half of 2025 will reach 2.4362 trillion won for 2.04 million households.
The earned income tax credit is a financial support program for low-income workers, self-employed individuals, and religious workers. The maximum amounts vary by household type: 1.65 million won for single-person households, 2.85 million won for single-income households, and 3.3 million won for dual-income households. Child benefits range from 500,000 to 1 million won per child for households with children under 18.
The majority of recipients in this round of payments are single-person households, which account for approximately 70% of the 1.92 million eligible households, totaling 1.26 million. Single-income households number 550,000, while dual-income households total 110,000.
Among the recipients, those aged 60 and older represent the largest group, with 840,000 households, making up about 46% of the total. The National Tax Service explained that the increase in single-person households and the aging population contributed to the higher proportion of recipients in these categories.
Applicants with other sources of income, such as business or religious income, are excluded from this round of payments. They will be considered for regular payments, with eligibility determined after a review on August 27.
Those eligible for the 2025 benefits but who have not yet applied can submit late applications until December 1 of this year. Applications can be made through the Home Tax website or an automated response system. However, late applicants will receive only 95% of the calculated amount due to a 5% reduction.
Payments will be deposited into the bank accounts selected at the time of application. Households that opted for cash payments must bring identification and the tax refund notice to their nearest post office to receive their funds. If the refund notice is lost, it can be printed directly from the Home Tax website or obtained at a tax office.
Results of the benefit assessments will be communicated via mail or mobile notifications. Recipients can also check their payment status through the benefit consultation center, the automated response system, or the Home Tax website on both PC and mobile platforms. The National Tax Service operates a dedicated consultation center for inquiries from 9 a.m. to 6 p.m. on weekdays.
* This article has been translated by AI.
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