[2023 National Audit] Choo Kyung-ho "Agree on Inheritance Tax Reform... Feasibility Study Underway for Conversion to Estate Acquisition Tax"

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho said on the 20th, "I agree that there is a need to discuss improvements to the inheritance tax," adding, "(The government) is conducting a study for the transition to a heritage acquisition tax."

At the National Assembly's Planning and Finance Committee audit on the same day, Choo responded to People Power Party lawmaker Joo Ho-young's remark that "South Korea's highest inheritance tax rate is 60%, the highest in the world," and his request to "review it comprehensively."

Choo said, "I broadly agree that South Korea's inheritance tax is generally high and needs reform," but added, "However, since there are still socially sensitive issues regarding the transfer of wealth, we consider the transition to a heritage acquisition tax a priority over a general overhaul of the inheritance tax, and we are conducting a study on this." He also stated, "We need to start by activating social discussions."

He also mentioned the need to strengthen tax benefits to ensure the continuity of family businesses in small and medium-sized enterprises. Choo said, "Last year, we proposed bills to the National Assembly to increase the eligible companies for benefits from 500 billion won to 1 trillion won in sales, but no consensus was reached, and only slight progress was made," adding, "Since we have brought bold proposals related to business succession, I hope the National Assembly will discuss them further."

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho is responding to a lawmaker's question during the audit of the Ministry of Economy and Finance held by the National Assembly's Planning and Finance Committee on the 20th. Photo by Hyunmin Kim kimhyun81@