In Korea, the government has introduced various earmarked taxes aiming at raising tax revenue necessary for the process of economic development. There are still various earmarked taxes in the national and local taxes. Two major problems involved in Korean earmarked taxes are as follow. First, causality relation between raising tax and spending its revenue is not clear. It also has applying no user-charge principle features. As a result, the rationale for imposing earmarked taxes is very weak. Therefore, most of earmarked taxes in Korea should be either eliminated or merged into the ordinary taxes. This analysis firstly presents the current trend in various earmarked taxes in Korea and examines major problems with earmarked taxes. Then it provides policy suggestions to improve the earmarked tax system in Korea.