The Korean Ministry of Strategy and Finance announced on 19 July that a revised double taxation agreement between Korea and Turkiye will enter into force on 21 July 2024. Under the agreement, the restrictive tax rate on dividend and interest income of the country paying the income (source country) will be reduced from 15 to 20 per cent to 10 to 15 per cent. The marginal tax rate is the highest tax rate that can be taxed on the income of a resident or legal entity of the other country under a tax treaty. However, the treaty does not apply to tax avoidance transactions that are intended solely to take advantage of the treaty's benefits. 

Double taxation agreements are treaties that prevent two countries from taxing income from transactions between them. It allows local investment income to be taxed at the lower rate set by the agreement. South Korea and Turkiye have been negotiating the revision since 2011 to ease the tax burden on local companies, and agreed on a final draft in October 2021.