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Government to detail inheritance tax changes in March

Published: 04 Mar. 2025, 17:09

Acting President Choi Sang-mok, left, poses with actor Park Ha-sun, during a ceremony marking the 59th Taxpayers' Day in Jung District, central Seoul, on March 4. [YONHAP]

Acting President Choi Sang-mok on Tuesday reiterated the need to revise Korea's decades-old inheritance tax system, stressing that taxation policies should be “reasonable” to reflect the evolving economic landscape.

Speaking at a ceremony marking the 59th Taxpayers' Day in Jung District, central Seoul, Choi reaffirmed the government's commitment to reforming the five-stage inheritance tax system, which has remained unchanged for years.

“As times and circumstances change rapidly, outdated tax policies become obsolete and place unnecessary burdens on the public,” Choi said.

He noted that while the system was initially designed to tax high-net-worth individuals, it has increasingly become a burden even on the middle class due to its failure to account for economic growth and rising asset values.

Choi said the government will announce a plan in March to rationalize inheritance tax deductions and transition to a heritage acquisition tax system, under which taxes are levied only on inherited assets.

“The government will continue working to establish a fair and reasonable tax system that aligns with public sentiment and ensures that honest taxpayers are properly recognized,” he added.

Yonhap