South Korea’s 2026 tax reform proposal would introduce a Productive Finance ISA with full tax exemption on interest and dividend income from South Korean stocks, South Korean equity funds and ETFs, and the National Growth Fund. The account would allow annual contributions of ₩20 million and total contributions of ₩200 million, without carryforward of unused annual limits. Subscribers aged 34 or younger with annual salary of ₩75 million or less could claim an additional deduction equal to 10% of contributions, capped at ₩2 million a year. The existing general ISA would face a five-year total contract-term limit, while both ISA types would begin with three-year terms renewable in three-year increments. The changes, including the end of contribution-limit carryforwards for 2027 contributions, have drawn investor opposition and may be revised before National Assembly passage. The proposal would also tighten Family Business Inheritance Deduction requirements while expanding deductions according to management tenure, introduce temporary third-party succession tax relief from 2028 through 2030, establish a 9% separate tax on dividends from Business Development Companies held through dedicated accounts, remove the three-year mandatory holding period for publicly offered real estate funds and REITs, and raise the basic dependent-deduction income threshold from ₩1 million to ₩3 million. Experts continue to advise matching regular accounts, ISAs and pension products to investment horizons rather than pursuing tax benefits alone.