Establishment of an organization

Permission for designation as a public interest corporation

National Tax Service designation agency covering new designations and re-designations

1. What is Designation as a Public Interest Corporation?

Designation as a public interest corporation refers to a system in which non-profit corporations, etc., are recognized by the National Tax Service as organizations eligible for donation tax credits under tax laws.

The official name is "Designation as a Public Interest Corporation, etc.", and upon receiving this designation, individuals and corporations who donate to the corporation can receive tax credits for donations (special donations or general donations).

As this is a different concept from a corporation that has received establishment approval from the competent authority under the Public Interest Corporations Act, a separate designation procedure by the National Tax Service is required.

2. Practical Overview and Requirements (Including Legal Basis)

1. Legal basis

Article 24 of the Corporate Tax Act and Article 39 of the Enforcement Decree
Article 34 of the Income Tax Act and Article 80 of the Enforcement Decree
Articles 16 and 48 of the Inheritance and Gift Tax Act
Act on the Establishment and Operation of Public Interest Corporations (in the case of public interest corporations under the Public Interest Corporations Act)

2. Designation Requirements

A non-profit corporation or public interest corporation that has received establishment approval from the competent authority
Articles of incorporation specify that upon dissolution, residual assets shall revert to the state, local government, or similar public interest corporations.
Unspecified multiplicity of the scope of beneficiaries
Disclosure of settlement documents for the previous fiscal year
Fulfillment of disclosure obligations through the internet homepage
Meeting evaluation criteria, such as operational performance evaluation results

3. Duration

New Designation: Approximately 2–3 months (Quarterly application and review)
Redesignation: Approximately 1–2 months
Redesignation required every 3 years

4. Key Documents to Submit

Application for Recommendation for Designation of Public Interest Corporations, etc.
Certified copy of the corporate register and articles of incorporation
Financial statements for the three previous fiscal years (balance sheet, statement of operations)
Business plan and budget
Copy of the establishment permit from the competent authority
Disclosure details (proof of website disclosure)
Statement of Reasons for Designated Recommendation Application (including achievements of public interest projects)

3. Type

New designation

Application for initial designation of a non-profit corporation that has never been designated as a public interest corporation, etc.

Redesignation (3-year cycle)

When applying for re-designation before the expiration of the 3-year designation period — proof of operational performance is key.

Special Donation Eligibility

Statutory public interest corporations such as social welfare corporations, school corporations, medical corporations, and religious organizations (separate designation not required or simplified procedure)

General donation recipients

Organizations that do not fall under the above but have been designated by the National Tax Service as non-profit corporations carrying out public interest projects

public interest corporation
Designation Procedure

Preliminary diagnosis and document review

Inspection of compliance with articles of incorporation, financial statements, and disclosures; self-assessment of whether designation requirements are met.

Fulfillment of disclosure obligations

Disclosure of settlement of accounts for the previous fiscal year (website and National Tax Service disclosure system); designation is not possible if disclosure is omitted.

Fill out the designated recommendation application form

Prepare a statement of reasons for application that summarizes the performance and achievements of the public interest project in specific figures.

Submission to the National Tax Service via the competent authority

Applications submitted to the Ministry of Economy and Finance or the National Tax Service through the competent authority

Review and Designation Notice

After review, the designation period (3 years) is specified and published in the Official Gazette, and the designation takes effect.

Donor tax credit

Individual donors are eligible for a tax credit of 151 TP3T (301 TP3T for amounts exceeding 10 million KRW), while corporate donors are recognized as deductible expenses within the limit of general donations.

Increased credibility of corporate operations

Official certification as a public interest corporation designated by the National Tax Service is advantageous for fundraising and selection for public projects.

Linked to inheritance and gift tax benefits

Exemption from inheritance and gift taxes on donated assets when a public interest corporation is also designated under the Public Interest Corporations Act

Expanding participation in government support programs

Preferential treatment for public interest corporations in various public offering and entrusted projects

Why a Designated Administrative Agent for Public Interest Corporations Is Necessary

Designation as a public interest corporation may be rejected due to the omission of even a single document.
If you proceed without the help of an expert, you may encounter the following difficulties:.

1. Verification of Disclosure Compliance

There are many cases where designation is denied due to the omission of a single disclosure, and the format, timing, and content of the disclosure must all meet statutory standards.

2. Persuasiveness of the Statement of Reasons for Application

The key to passing the review is to persuasively describe the impact on the public good, rather than simply listing achievements.

3. Reassignment Risk Management

If you fail the 3-year re-designation cycle, past donation tax credits may be clawed back, so constant management is essential.

4. Linkage to Articles of Incorporation Amendment

Articles of Incorporation that do not meet the designation requirements (such as the attribution of residual assets and the composition of the board of directors) must be amended with the permission of the competent authority, and this process is supported in parallel.

To the representative of a corporation wishing to give back to society through public interest projects,
Designation as a public interest corporation is not merely an "application for tax benefits.".
It is a procedure in which the state officially certifies the public interest nature of your corporation, and,
It is a seal promising trust to the donor.
Seum goes beyond simply filling out the designation application documents,
We will become a long-term partner leading to re-designation after three years.

April 2026
Seum Administrative Attorney Firm
Written by: Sangyoon Kim, Administrative Scrivener

Frequently Asked Questions (FAQ)

Q. Are the permit to establish a public interest corporation and the designation of a public interest corporation the same thing?

A. They are different. Under the Public Interest Corporations Act, the establishment permit is an approval granted by the competent authority for the corporation's establishment itself, whereas the designation as a public interest corporation, etc., is a system in which the National Tax Service separately designates an entity as eligible for donation tax benefits. In practice, both processes are often pursued in parallel.

Q. What happens if I miss the re-designation application?

A. The designation expires upon the expiration of the designated period, and the donor tax credit will no longer apply thereafter. In severe cases, retroactive disadvantages may occur to the donor, so it is necessary to prepare for re-designation starting three months prior to expiration.

Q. Can corporations established for less than one year also apply for designation?

A. In principle, it is difficult for newly established corporations as settlement and disclosure records for the three preceding fiscal years are required. However, exceptions may apply to statutory public interest corporations (social welfare corporations, school corporations, etc.).

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