Details on Introducing Payment-in-Kind System for Inheriting and Paying Property Tax with Cultural Assets

Ministry of Culture to Hold Expert Forum on Introducing Payment-in-Kind System on Next Month 1st
"It Could Be a Way to Secure Excellent Cultural Heritage"

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Discussions on introducing a payment-in-kind system that allows inheritance tax or property tax to be paid with cultural assets or artworks are becoming more concrete.

The Ministry of Culture, Sports and Tourism and the Korean Museum Association announced on the 25th that they will hold an expert forum on the introduction of the payment-in-kind system at 2 p.m. on the 1st of next month at the National Museum of Korea. The payment-in-kind system is a system where inheritance tax, property tax, etc., are paid with assets specified by law instead of cash.

The current 'Inheritance and Gift Tax Act' limits payment-in-kind to real estate or securities, which are easy to dispose of and manage. Although there have been calls to include cultural assets and artworks to reduce tax burdens and prevent the overseas outflow of cultural heritage, institutionalization has not been achieved due to difficulties in proper valuation and management.

In May, the Kansong Art and Cultural Foundation put two treasures up for auction, and Mr. Son Chang-geun donated Chusa Kim Jeong-hui's "Sehando (National Treasure No. 180)," which has reignited calls to include cultural assets and artworks. The cultural sector often cites France, which was the first to introduce the payment-in-kind system as a successful case. The government was able to secure many artworks that are difficult to acquire with budget alone, prevent the overseas outflow of excellent cultural heritage, and operate the Picasso Museum. Accordingly, the National Assembly Legislative Research Office stated in a legislative and policy report released on the 7th of last month that there is a need to comprehensively review related policies and laws.

At the forum to concretize this, art critic Jeong Jun-mo will present on "The Necessity of Allowing Payment-in-Kind of Inheritance Tax for Museums and Art Galleries," and accountant Kim So-young of Hanmi Accounting Corporation will present on "Key Considerations and Suggestions When Introducing the Payment-in-Kind System." The discussion, chaired by Jang In-kyung, Chairperson of the Korea Committee of the International Council of Museums, will include participants such as Park Seon-ju, Director of Yeong-eun Museum of Contemporary Art, Lee Won-bok, former Curator of the National Museum of Korea, attorney Kathleen Kim of Law Firm RIOU, and Professor Lee Jae-kyung of Konkuk University. A Ministry of Culture, Sports and Tourism official said, "The payment-in-kind system for cultural assets and artworks can be a way to secure excellent cultural heritage through a system rather than individual sacrifice and effort," adding, "We hope this forum will serve as a starting point."