According to reports from Korean media such as Yonhap News Agency, “Joongang Ilbo”, and “Korea Economy” on the 23rd, inheritance tax benefits for Korean family businesses reached 541 billion won last year, a sharp increase of 136% over the previous year, and 15.7 times that of 2015. This system was originally intended to “protect” family businesses that have inherited technology and craftsmanship, but as the scale of tax benefits rapidly expanded, it has sparked controversy in South Korea over whether it has become a tax avoidance channel. The so-called family business inheritance tax is not directly exempt from inheritance tax in equal amounts, but rather allows heirs to deduct part of the corporate property from taxable estates. According to Korean law, when inheriting an eligible small or medium enterprise that has been in continuous operation for 10 years or more from the previous generation, a maximum of 60 billion won can be deducted from taxable inheritance based on the length of operation.

According to reports from Korean media such as Yonhap News Agency, “Joongang Ilbo”, and “Korea Economy” on the 23rd, inheritance tax benefits for Korean family businesses reached 541 billion won last year, a sharp increase of 136% over the previous year, and 15.7 times that of 2015. This system was originally intended to “protect” family businesses that have inherited technology and craftsmanship, but as the scale of tax benefits rapidly expanded, it has sparked controversy in South Korea over whether it has become a tax avoidance channel. The so-called family business inheritance tax is not directly exempt from inheritance tax in equal amounts, but rather allows heirs to deduct part of the corporate property from taxable estates. According to Korean law, when inheriting an eligible small or medium enterprise that has been in continuous operation for 10 years or more from the previous generation, a maximum of 60 billion won can be deducted from taxable inheritance based on the length of operation.