President Lee slams KCCI report linking inheritance tax to wealthy Korean exodus as 'fake news'
Published: 08 Feb. 2026, 18:37
Updated: 08 Feb. 2026, 22:37
![President Lee Jae Myung speaks during a Cabinet meeting at the Blue House in central Seoul on Feb. 3. [NEWS1]](https://koreajoongangdaily.joins.com/data/photo/2026/02/08/55610aea-5981-4a27-b536-1792584ea8e1.jpg)
President Lee Jae Myung speaks during a Cabinet meeting at the Blue House in central Seoul on Feb. 3. [NEWS1]
President Lee Jae Myung on Saturday condemned a recent press release from the Korea Chamber of Commerce and Industry (KCCI) that linked Korea's high inheritance taxes to an exodus of wealthy people, calling it "fake news."
The KCCI immediately apologized.
“Creating and spreading fake news to serve private interests and undermine government policy deserves condemnation,” Lee wrote on X on Saturday. "It was hard to believe an official organization established by law, like the KCCI, would do this openly. Deliberate fake news that misleads the public undermines democracy."
The KCCI on Tuesday released a press release titled “Analysis of Inheritance Tax Revenue Outlook and the Effects of Diversifying Payment Methods" (translated). Citing data from British investment migration consultancy Henry & Partners, the KCCI claimed that the “outflow of high-net-worth Koreans rose from 1,200 in 2024 to 2,400 in 2025."
The press release also quoted a KCCI official who said that inheritance tax rates of 50 to 60 percent “could act as a major factor accelerating the overseas outflow of capital.”
Inheritance tax is levied on the transfer of a deceased person’s assets to heirs, taxing the value of an estate when wealth passes to the next generation. Korea, which applies an estate tax system, imposes some of the heaviest inheritance tax burdens in the Organisation for Economic Co-operation and Development (OECD), with a top statutory rate of 50 percent that can rise to about 60 percent when surcharges apply to inherited controlling stakes. Most OECD countries impose far lower inheritance tax rates, or none at all.
The Henry & Partners data, however, has drawn controversy.
![The National Tax Service headquarters is seen in Sejong. [NEWS1]](https://koreajoongangdaily.joins.com/data/photo/2026/02/08/edcee5c0-8050-486c-96cc-27b4452fa04d.jpg)
The National Tax Service headquarters is seen in Sejong. [NEWS1]
British media outlets, including the Financial Times, questioned the firm's credibility in June and July last year. The consultancy reportedly relied on LinkedIn data analyzed by a one-person firm in South Africa, New World Wealth, with signs that the dataset had been manually entered or adjusted.
Henry & Partners also made no mention of inheritance taxes as a reason for the outflow of wealthy Koreans, citing only the country's recent economic and political instability. Rep. Cha Gyu-geun of the Rebuilding Korea Party had raised the issue during a National Assembly audit in October last year, saying the report “contains not even a single mention of the inheritance tax."
Senior government officials also denounced the press release.
Deputy Prime Minister and Economy and Finance Minister Koo Yun-cheol said on Saturday that the press release amounted to “fake news” and said the KCCI should "bear responsibility for producing and distributing a statement based on flawed statistics."
Industry Minister Kim Jung-kwan also weighed in.
![Industry Minister Kim Jung-kwan speaks during a meeting at Government Complex Seoul in central Seoul on Feb. 4. [YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2026/02/08/a5a9122e-b2fe-4759-8ad2-58075e661b12.jpg)
Industry Minister Kim Jung-kwan speaks during a meeting at Government Complex Seoul in central Seoul on Feb. 4. [YONHAP]
“We will take decisive action," Kim said. “We will immediately audit how the press release was drafted and distributed and hold those responsible strictly accountable based on the findings.”
National Tax Service Commissioner Lim Kwang-hyun countered the claim from the press release using government data.
"The average number of people who reported overseas relocations over the past three years stood at 2,904, with an average of only 139 per year holding assets worth 1 billion won [$682,000] or more," Lim said.
The KCCI issued an apology two and a half hours after Lee posted his message on X.
"We deeply apologize for causing unnecessary confusion by citing external statistics without sufficient verification,” the KCCI said.
The issue also drew a response from the Blue House.
"False information undermines democracy by distorting the judgment of the public," a Blue House official said. "Firm, strict action against it is essential for the community."
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY OH HYUN-SEOK [[email protected]]
with the Korea JoongAng Daily
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