Investing in US Stocks via
Korean Pension and ISA Accounts
"Buying US stocks through a pension account" really means buying a Korea-listed US-tracking ETF inside that account. Here's how the tax-deduction, withdrawal-tax, and early-termination structure works by account type.
What "US Stocks via a Pension Account" Actually Means
Korea's Pension Savings and IRP accounts are operated by domestic Korean financial institutions, and what you can buy inside them is limited to funds and ETFs listed on a Korean exchange. Buying a stock like SPY or VOO, listed directly on the NYSE, is generally not possible inside these accounts. Instead, you invest indirectly by holding a Korea-listed ETF that tracks the same index (e.g., TIGER US S&P500). See also our comparison of Korea-listed ETFs vs. direct investing tax treatment.
Tax-Deduction Limits (as of 2026)
| Item | Detail |
|---|---|
| Combined deduction limit | Pension Savings + IRP combined, 9-million won/year (Pension Savings alone: 6-million won/year) |
| Deduction rate | 16.5% if total wages ≤ 55-million won; 13.2% if above |
| Contribution limit (separate from the deduction) | Pension Savings + IRP combined, up to 18-million won/year in contributions |
Fully using the 9-million won deduction returns roughly 1.188 to 1.485-million won directly off that year's tax bill, depending on your income bracket. That said, this is less "saving tax" than deferring taxation to withdrawal — when you withdraw, pension-income tax applies.
Tax on Withdrawal — Pension-Income Tax
If you meet the requirements (generally age 55+ and a 5+ year holding period) and withdraw in the form of a pension, a lower age-tiered pension-income tax rate applies (as of 2026: ages 55–69, 5.5%; ages 70–79, 4.4%; age 80+, 3.3%, including local income tax). Since this rate is lower than the deduction rate you received when contributing, the structure creates a tax-deferral benefit.
★Early Termination — the Unfavorable Condition You Need to Know
ISA — a Separate System from Pension Accounts
An ISA (Individual Savings Account) is a different system, not built around a tax deduction but around netting gains and losses within the account plus a tax-free threshold. As of 2026, the tax-free threshold at maturity is 2-million won for a standard account (4-million won for a low-income/farmer-fisher account type), with a 9.9% separate tax rate on gains above that. Whether you can directly trade overseas stocks inside an ISA depends on the ISA type (e.g., brokerage-type) and the brokerage you use, so confirm before opening one.