Kim Chang-ki, Commissioner of the National Tax Service, "High Inheritance Tax Rates Will Lead to Much Social Discussion Ahead"

Revealed at the AmCham Invitation Meeting
"It Has Now Become an Important Agenda"

Kim Chang-gi, Commissioner of the National Tax Service, recently addressed the growing calls from the business community to reduce corporate inheritance tax rates, stating, "It seems to have become an important agenda," and added, "There will be much social discussion ahead."

Kim Chang-ki, Commissioner of the National Tax Service, is giving a presentation at the AmCham invitation meeting held on the afternoon of the 11th at the Grand Hyatt Seoul Hotel. Photo by AmCham

Commissioner Kim made these remarks on the 11th during a meeting held at the Grand Hyatt Seoul Hotel, hosted by the American Chamber of Commerce in Korea (AMCHAM), in response to questions about inheritance tax rates.

He noted, "Inheritance tax rates have become a practical issue as the wealthy class ages," explaining, "Our country's industrialization occurred in the 1970s and 1980s, and as the first and second generations of founders pass away, it has become a matter that requires discussion." However, he did not disclose his personal views on the inheritance tax rates. When asked, "What do you think about the high inheritance tax rates imposed on companies?" Commissioner Kim refrained from commenting, saying, "It is a systemic issue, so it is difficult to express a personal opinion."

Inheritance tax rates have drawn attention as the passing of aging group owners has led their families to bear such high inheritance taxes that it disrupts corporate management. Large business owners are subject to the highest inheritance tax rate of 60% under Korean tax law, which is among the highest in the member countries of the Organisation for Economic Co-operation and Development (OECD).

At the meeting, Commissioner Kim listened to concerns and questions from representatives of foreign companies and responded accordingly. He highlighted that despite the uncertain global economic situation, foreign direct investment in Korea reached a record high last year, with the United States accounting for the largest share, emphasizing the deep trust and significant investment of American companies in the Korean market.

He further promised fair taxation without discrimination between domestic and foreign corporations and stressed the establishment of a stable and predictable tax environment aligned with international standards (Global Standard) so that foreign companies can focus on conducting business in Korea.

Additionally, he expressed hope that "this meeting will serve as an opportunity to strengthen the cooperative relationship between the National Tax Service and foreign companies," and pledged, "We will continue to communicate with foreign companies, including American companies in Korea, and actively reflect their field opinions in tax administration."

The meeting was organized by AMCHAM to listen to tax-related policies promoted by the Korean government to revitalize foreign investment, the National Tax Service’s tax support measures, and to exchange opinions on tax-related difficulties faced by global companies resuming operations, seeking solutions.

James Kim, Chairman and CEO of AMCHAM, stated, "To realize Korea’s potential as a business hub in the Asia-Pacific region, it is important to guarantee a fair and transparent business environment for both domestic and foreign companies, and among these, tax policy is one of the most critical areas."