On October 29, D&A successfully hosted a hybrid seminar addressing the tax implications of “dividends funded by reserve fund reduction,” which drew attention following the Ministry of Economy and Finance (MOEF)’s announcement of its 2025 tax reform plan. 

This seminar was designed to help shareholders and companies develop practical response strategies in light of the 2025 tax reform, under which dividends distributed via the transfer of capital reserves to retained earnings—previously enjoying long-standing tax-exempt status following the 2011 revision of the Commercial Act—will become taxable starting in 2025. 

The seminar was moderated by D&A Partner Ho Jeong JEONG, with presentations delivered by Partner Woo Seok CHOI on “Issues Related to Tax-Exempt Dividends Through Reserve Fund Transfers under the Commercial Act,” Partner Dong Woo LEE on “Issues Related to Tax-Exempt Dividends Through Reserve Fund Transfers under the Tax Act,” and Attorney Yeong Woong LEE on “Other Key Issues Related to Dividends,” followed by in-depth discussions. 

This seminar was aimed at corporate professionals interested in the legal and tax issues surrounding dividends distributed through reserve fund reduction. It provided a meaningful opportunity to offer a clear understanding of recent regulatory changes resulting from the 2025 tax reform and to present practical response strategies that companies can apply in their operations, drawing on D&A’s accumulated expertise and hands-on experience.