A recent survey found that public opinion in South Korea leans toward strengthening the current inheritance tax system. (Image: Pixabay/CCL) SEOUL, Feb. 1 (Korea Bizwire) — A recent survey indicates that a majority of South Koreans support increasing inheritance tax rates, contradicting calls from business groups and conservatives to ease the tax burden.
According to the Korea Institute of Public Finance (KIPF), data from the 16th Fiscal Panel Survey revealed that respondents favored a 5% tax rate on inheritances of 500 million KRW (approximately $344,000) and a 10% rate on inheritances of 1 billion KRW (approximately $690,000). For inheritances of 300 million KRW ($205,000), opinions were split between tax exemption and a 5% tax rate, while for 100 million KRW ($69,000), most respondents preferred full exemption. Under the current inheritance tax system, South Korea applies a 5 billion KRW deduction for spouses and an additional 5 billion KRW standard deduction, effectively setting the taxation threshold at around 1 billion KRW.
The survey findings suggest that many citizens believe the existing system should be more progressive. Public Perception vs. Policy Debate The report notes that many respondents perceive the inheritance tax as less progressive than it actually is.
However, the majority view does not necessarily equate to an optimal tax policy, the institute cautioned. Despite calls from business leaders and wealthy individuals for substantial inheritance tax cuts, .