The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    4 Chinese, 4 Russian military planes enter Korea's air defense zone without notice

  • 3

    'The Second Husband' co-stars to the tie knot, expecting child in real life

  • 5

    Egyptian national arrested for possession of cannabis cookie

  • 7

    Presidential office's plan to revamp TV viewing fees causes stir

  • 9

    Samsung family takes out stock loans to pay inheritance tax

  • 11

    International Yoga Day to celebrate well-being of body, mind

  • 13

    S. Korea wins seat on UN Security Council for 2024-25

  • 15

    Heart transplant recipients tie the knot

  • 17

    JYP founder to work as guest commentator for NBA finals on Korean cable

  • 19

    Apple unveils Vision Pro, its $3,500 headset

  • 2

    Asiana Airlines pilots union to initiate mass flight delays

  • 4

    Korean food's global popularity leads to copycat products in China, Japan

  • 6

    'Dynamite' tops 1.7 bil. YouTube views to become most-watched BTS MV

  • 8

    ROK-US alliance is now nuclear-based: President Yoon

  • 10

    Incheon announces plans to become hub for overseas Koreans

  • 12

    Saudi mega-city project NEOM secures $5.6 bil. for workforce housing

  • 14

    Controversy grows as fisheries ministry stresses safety of seafood, salt, beaches

  • 16

    Hyundai Motor, IKEA join hands to promote sustainable outdoor activities

  • 18

    JPMorgan chief meets with Korean financial leaders

  • 20

    Yoon says alliance with US upgraded to 'nuclear-based alliance'

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
Thu, June 8, 2023 | 09:55
Companies
Korean businesses pressure gov't to lower inheritance tax
Posted : 2022-08-18 08:39
Updated : 2022-08-18 20:37
Kim Bo-eun
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link
Korean business groups often cite the fact that Korea's inheritance tax rate is one of the highest among the OECD member states. Korea Times file
Korean business groups often cite the fact that Korea's inheritance tax rate is one of the highest among the OECD member states. Korea Times file

Country's inheritance tax rate stands at 50%, second-highest among OECD states

By Kim Bo-eun

Korea's inheritance tax rate is drawing attention as business groups have stepped up their calls for the rate to be lowered.

Local business groups often cite the fact that Korea's inheritance tax rate is one of the highest among the OECD member states.

Korea's rate is 50 percent, the second-highest among OECD states, after Japan, which levies 55 percent.

Korea's inheritance tax generated a buzz after the death of Samsung Electronics Chairman Lee Kun-hee, as the bereaved family became subject to 12 trillion won ($9.15 billion) in inheritance taxes.

The rationale for levying inheritance tax is to reduce the wealth gap. Business groups have continued to lobby the government to ease the rate.

"It would not be right to make simple comparisons of rates levied among countries, but the rate levied on large Korean businesses handing down assets worth more than 10 billion won is not a small amount," Kang Sung-hoon, a professor of policy studies at Hanyang University, said.

"A fairer method, however, would be to determine first whether a company holds assets that they can sell to pay the tax, and then subject them to taxation accordingly."

The pro-business Yoon Suk-yeol administration has alleviated the burden for mid-tier businesses, by including them in the pool of firms that are able to get inheritance tax relief. The new standard for applicable firms is generating less than 1 trillion won in annual revenue, up from those who made less than 400 billion won in revenue a year.

Previously, the law allowed the tax cut for smaller companies as a means to help them maintain their businesses, since under substantial tax rates, small businesses often face closure. The grounds for providing such forms of relief are to preserve competent businesses and because companies are able to contribute to the economy by creating jobs.

There were a number of conditions the beneficiaries of the tax cut had to adhere to, such as maintaining their business and retaining 100 percent of their workforce for seven years. These conditions have also been alleviated significantly.


Emailbkim@koreatimes.co.kr Article ListMore articles by this reporter
 
wooribank
Top 10 Stories
1Heart transplant recipients tie the knot Heart transplant recipients tie the knot
2Seoul Queer Culture Festival venue moved to Euljiro Seoul Queer Culture Festival venue moved to Euljiro
3Experts skeptical about effectiveness of S. Korea's UNSC seat to rein in N. KoreaExperts skeptical about effectiveness of S. Korea's UNSC seat to rein in N. Korea
4Yido bridges East, West via fusion cuisine in crafted ceramics Yido bridges East, West via fusion cuisine in crafted ceramics
5Samsung to unveil new foldable phones at Galaxy Unpacked in Seoul Samsung to unveil new foldable phones at Galaxy Unpacked in Seoul
6Korea, Poland celebrate rollout of Warsaw's first FA-50 Korea, Poland celebrate rollout of Warsaw's first FA-50
7Umbrella union boycotts negotiating body to protest labor crackdownUmbrella union boycotts negotiating body to protest labor crackdown
8Rise in temperatures, solar radiation by 2100 inevitable: weather agencyRise in temperatures, solar radiation by 2100 inevitable: weather agency
9Coupang, Baemin under pressure from radical labor groups Coupang, Baemin under pressure from radical labor groups
10Blockchain technology on path to becoming more publically accessible Blockchain technology on path to becoming more publically accessible
Top 5 Entertainment News
1Frieze Seoul unveils stronger lineup of Asian galleries for its second edition Frieze Seoul unveils stronger lineup of Asian galleries for its second edition
2'Leaving Las Vegas' director Mike Figgis puts Korea in spotlight in new film 'Leaving Las Vegas' director Mike Figgis puts Korea in spotlight in new film
3[REVIEW] 'The ODD Of LOVE' concert: Taeyeon shows why she is among K-pop's top vocalists REVIEW'The ODD Of LOVE' concert: Taeyeon shows why she is among K-pop's top vocalists
4Baritone Kim Tae-han wins Queen Elisabeth Competition Baritone Kim Tae-han wins Queen Elisabeth Competition
5Busan Film Festival accepts director Huh Moon-yung's resignation Busan Film Festival accepts director Huh Moon-yung's resignation
DARKROOM
  • Turkey-Syria earthquake

    Turkey-Syria earthquake

  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group