20 minors registered as CEOs making over 100 million won

(123rf)

Over the past five years, 20 minors have earned more than 100 million won ($74,119) a year as CEOs in South Korea, including a child under the age of five, government data showed Monday, highlighting concerns over possible inheritance tax loopholes.

According to data from the National Health Insurance Service submitted to Rep. Jin Sun-mee of the main opposition Democratic Party Korea, there are 360 business owners that are under the age of 19 as of August 2024. The data covers only those registered as business owners under the health insurance system, which includes joint representatives.

Breaking down by income, 20 minors earned more than 100 million won a year, 41 minors made between 50 million won and 100 million won, and 299 minors earned less than 50 million won.

The 100-million-won club included 12 individuals aged 11 to 15, five minors aged 16 to 17, two aged six to 10 and one under five years old.

Seoul had the largest number of minor-owned businesses at 231, followed by Gyeonggi Province with 61, Incheon with 22, Busan with 18 and North Jeolla Province with 9.

No minor CEOs were reported in several regions, including Gwangju, Ulsan, North Chungcheong Province, South Jeolla Province, North Gyungsang Province and Jeju.

Rep. Jin called for tighter regulations to prevent the setting up of businesses owned by minors as a means of evading inheritance tax. “This is not just an isolated issue for a few individuals, but a reflection of widespread income inequality across society,” she said. “We need stronger oversight to prevent inheritance tax evasion by those who take advantage of laws allowing minors to register businesses.”

By Ahn Sung-mi(sahn@heraldcorp.com)