Seoul: Eight out of 10 South Korean tax experts see the need to ease inheritance tax to reflect an increase in national income and asset prices, the country's main business lobby said Monday.According to Yonhap News Agency, a survey conducted by the Federation of Korean Industries (FKI) involving 106 experts, including tax accountants and professors, revealed that 82.1 percent supported revising tax laws to lower inheritance tax. The experts highlighted that the taxation system, unchanged since 1999, fails to account for the increase in individuals and corporations subject to inheritance taxes due to higher earnings and asset values.The FKI emphasized that the current inheritance tax rate of 50 percent may impede corporate competitiveness and business stability. It also noted that the tax could function as double taxation alongside income tax. Within the Organization for Economic Cooperation and Development's 38 member countries, South Korea's 50 percent tax rate is the second-highest, as pointed out by a n FKI official.A significant number of respondents indicated that a reduced inheritance tax rate would positively impact the Korean economy and help address the "Korea discount," a persistent undervaluation of Korean shares compared to global peers, according to the FKI.In a separate survey of 1,000 individuals, 73.4 percent agreed with the need to ease inheritance tax for similar reasons. An FKI official remarked that several other countries have abolished or reduced inheritance taxes to foster a business-friendly environment, suggesting that Korea could enhance its business market conditions and attract foreign investments through tax revisions.
- October 12, 2026
