S. Korean gov't careful about adjusting inheritance tax law: finance minister
“There are opposing views about the need of levy to prevent hand-down in wealth and the excessiveness of the levy. Due to the sensitivity of the issue, it must be considered in the context of plausibility and social acceptance,” Hong Nam-ki, deputy prime minister and minister of strategy and finance, told reporters Thursday, local time, on the sidelines of the G-20 meeting of finance ministers in Washington, United States.
Korea’s inheritance tax is one of the heaviest in the world. Maximum 50 percent rate is imposed on inherited wealth exceeding 3 billion won ($2.5 million) and separate 20 percent levy on stock bequest.
Samsung family members had to give up 2.2 trillion won worth shares in Samsung flagship companies to afford their heavy tax from inheriting estate from their late patriarch Lee Kun-hee. The late chairman left about 26 trillion won worth wealth including stocks worth 19 trillion won. They faced 12 trillion in inheritance tax.
The government has outsourced research on amending the country’s rigid inheritance system.
The government is also reviewing the option of shifting to inheritance acquisition tax, which levies tax on each of the acquired inheritance rather than total inheritance value.
At the earliest, a change may be reflected in next years’ tax code outline, Hong said.
Meanwhile, the finance minister expected the annual inflation rate to exceed 2 percent and government-set estimate of 1.8 percent. The government will freeze gas charge until the year-end despite the spike in international prices as not to fuel inflationary pressure.
[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]
ⓒ 매일경제 & mk.co.kr, 무단전재 및 재배포 금지
- F&F, Hyosung Advanced Materials, Samsung Biologics cited winners in Korean bear run - Pulse by Maeil Business News Korea
- Posco joins hands with world’s largest miner BHP to decarbonize steelmaking - Pulse by Maeil Business News Korea
- U.S. biotech firm Cerecin raises $30mn from Korean investors - Pulse by Maeil Business News Korea
- Hyundai Oilbank to export its CCU-based methanol production technology - Pulse by Maeil Business News Korea
- Chinese display makers made fast strides in OLED, threatening Korean dominance - Pulse by Maeil Business News Korea
- 박수홍 사망보험 납입액만 14억·월 1155만원 납부
- "러 군함, 가스관 폭발현장에 있었다"…힘실린 `푸틴 개입설`
- ESPN "이강인 더 중요한 역할 시작할 때인데.."
- H.O.T. 이재원 “30대 초반에 갑상선암 앓아”
- 박민영 측 "열애설 상대와 이별…금전 제공 사실 아냐"