Go to contents

4.88 Billion Won Bonus for Advancing to 2nd Round

Posted June. 03, 2002 23:32,   


Each team participating in the World Cup Games will get 3.6 ~ 9.92 billion won of bonus based on their game results and should pay the Korean or Japanese government 240 to 655 million won of income taxes.

According to the Ministry of Finance and Economy, the 32 teams competing each other in Korea and Japan will receive bonuses from the FIFA--from a minimum of 3.6 billion won (SFr 4.5 million) to a maximum of 9.92 billion won (SFr12.4 Million).

Based on the results, those who fail to advance to the Round of 16 will get 3.6 billion won, those who advance to the Round of 16 4.88 billion won, those who advance to the quarter final 6.342 million won, those who advance to the semifinal 9.52 billion won, the 2nd place of the Cup 9.72 billion won, and the Winner of the Cup will get 99.2 billion won.

Generally, football associations from each country generally deposit 70% of total bonus as a fund, and the rest 30% will go to the players and coaches. Thus, only 1.08 to 2.97 billion won will be liable to the taxation.

The Ministry of Finance and Economy decided to levy 22% of tax rate to the players and coaches of the game, classifying them as "Entertainers and Sports Players" category. The Japanese tax rate is 20%, lower than that of Korea.

This means that a total of 240 to 655 million won out of the total payment to the players and coaches of each team will be paid to the Korean and Japanese government. Players in the Korean National Team and its coach Gus Hiddink, unlike other foreign players not living in Korea, will pay taxes according to the Korean income tax regulations.

The Korean Football Association promised to give bonus to the national team--if the team advances to the Round of 16, every player will get 100 million won, and if it makes to the quarter final 200 million. When added to their annual salaries, the players` bonuses are subjected to a maximum rate of 36%. Coach Hiddink, who had signed a contract to get US$150,000 (184.5 million won) if the team makes it all the way to the quarter final, is also subjected to the same rate.

Joong-Hyun Park sanjuck@donga.com