South Korea Announces 2026 Tax Reform Plan, Including Several Incentive Reforms, Amendments for Pillar 2, and Others

South Korea's Ministry of Economy and Finance announced its 2026 Tax Reform Plan on 3 August 2026. The main corporate tax measures include:

• The introduction of regional multipliers (coefficients) for the R&D and integrated investment tax credit rates to encourage investment outside the capital area from 1 January 2027 to 31 December 2029:
  • 1.0 for the Seoul capital area (Seoul, Gyeonggi, Incheon);
  • 1.1 for non-capital metropolitan cities, and designated metropolitan preferred areas;
  • 1.3 f…