The South Korean government is set to extend and formalise key tax exemptions and fuel relief for fisheries companies to support the sector amid mounting climate and economic challenges, with the move expected to stabilise industry operations into 2029.
South Korea’s Ministry of Oceans and Fisheries has moved to make a range of tax breaks for fishers and fisheries firms permanent, while also prolonging fuel tax relief for the sector until the end of 2029. The plan would remove expiry dates from several long-running exemptions, including corporate tax relief for English stock companies involved in fishing, income tax relief on dividends paid to members and VAT exemptions for fishery management and labour services, according to the ministry. The move comes as the industry faces mounting pressure from climate volatility and higher operating costs.
Under the proposal, the current tax exemptions would continue without a sunset clause, with corporate tax relief still capped at 30 million won of annual fishing income per member and 12 million won for other income, while annual dividend income up to 12 million won would remain exempt from income tax. The ministry also wants to make permanent a special tax rule that allows fishers to contribute fishing land or similar assets to fisheries corporations without paying capital gains tax at the time of the transfer. The tax would instead be settled later by the corporation if the asset is sold.
The revision would also keep in place other relief measures, including VAT exemptions on fishing equipment imported directly by fishers and full capital gains tax relief on land and buildings used for fishing for at least 8 years by people living at the site of the property. Separately, the fuel support scheme for fishing vessels would be extended to December 31, 2029, allowing fishers to continue receiving exemptions from VAT, individual consumption tax, transportation, energy and environmental taxes, education tax and automobile tax when buying fishing fuel. The government had previously signalled that the fuel exemption would end this year, according to related legal guidance and earlier reporting.
Cho Hyun-ho, head of fisheries policy at the ministry, said the tax overhaul should ease the burden on fishing businesses facing difficult conditions, including the effects of the climate crisis, and help underpin more stable operations. The bill tied to the 2026 tax revision plan is now in the public notice stage until August 20, with the final version due to be submitted to the National Assembly next month and expected to be decided in December.
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