"Is Inheritance and Gift Tax Only Paid by the Wealthy?"... Special Lecture Held at District Office

Even Owning a Single Apartment Can Trigger Inheritance Tax
Seodaemun-gu Invites Tax Accountants from National Tax Association for Special Lectures and Consultations
Top Tax Consultation at District Office Focuses on 'Inheritance and Gift Tax'

Seodaemun-gu, Seoul, held a 'Capital Gains, Inheritance, and Gift Tax Saving Special Lecture' for residents on the 29th of last month. Tax accountant An Sunam is explaining about inheritance tax. (Photo by Minjin Kim enter@)

On the 29th of last month, at the 6th-floor auditorium of Seodaemun-gu Office, all 300 pre-arranged seats were sold out 10 minutes before the start of the monthly celebrity lecture held by the district office. After setting up about 100 extra chairs, the lecture began.

"How much property must one have to pay inheritance tax?" "Is it advantageous to report inherited property after appraisal?" "How much can be gifted in cash or real estate without incurring taxes?" "If parents lend jeonse deposit money, is it subject to taxation?"

As the lecturer rapidly fired questions and answers, the audience perked up their ears. The topic of this celebrity lecture was 'Capital Gains Tax and Inheritance & Gift Tax.' When Hwang Seon-ui, a tax accountant and head of the National Tax Friends Volunteer Group, who was the first speaker, introduced consultation cases, the residents in the auditorium became fully focused.

Tax accountant Hwang explained, "Nowadays, even owning just one apartment can trigger inheritance tax, but if there is a spouse, inheritance tax does not occur up to 1 billion KRW," and introduced tax-related YouTube videos and materials created by tax accountants belonging to the National Tax Friends Association. He breathlessly explained methods to reduce taxes through prior gifting, tax savings via joint ownership by spouses, and how to utilize appraisals.

Next, tax accountant Ahn Su-nam said, "Inheritance tax was once perceived as a tax only the wealthy paid, but now it has become a popular tax that anyone can pay," adding, "Wise inheritance and gifting can also preserve family affection and harmony." Most of the residents attending the lecture were middle-aged and older. When cases of mismanaged prior gifting or unprepared inheritance causing misfortune were introduced, they sighed as if it were their own story.

Seodaemun-gu prepared thoroughly as applications from residents for this tax-related lecture were three to four times higher than usual. Interest and inquiries related to inheritance and gifting are more than expected. In free tax consultations regularly held by various district offices for residents, questions about inheritance and gift taxes dominate other inquiries.

Kim Tae-gi, a tax accountant conducting free tax consultations at Gwangjin-gu Office, said, "These days, many elderly people worried about inheritance tax visit the consultation desk," adding, "Most residents who come for consultation are unaware of the basic deduction for inheritance tax and spousal inheritance deduction, so we inform them about these." Tax accountant Jeong Dal-seung, who has volunteered for tax consultations at Yangcheon-gu Office for four years, also said, "Mostly elderly people come to consult about inheritance issues concerning themselves, their children, or siblings."

According to National Tax Service statistics, the number of inheritance tax filings, which was only 8,449 in 2018, more than doubled to 19,506 in 2022 over four years. The number of gift tax filings also increased by nearly 50%, from 145,000 in 2018 to 210,600 in 2022, and this trend is expected to become more pronounced. Steady increases in national income, recent years' soaring housing prices, and aging population have all contributed to growing interest in inheritance and gift taxes.

Although there were only two lecturers that day, 13 other tax accountants helped over 100 residents with individual consultations at the consultation corner set up by Seodaemun-gu Office. They are tax accountants belonging to the National Tax Friends Association, a group of former National Tax Service officials.

Lee Seong-heon, mayor of Seodaemun-gu, said, "Tax issues are concerns everyone faces in life," and added, "Since residents show great interest, we will prepare more tax lectures in the second half of the year."

Seongheon Lee, Mayor of Seodaemun-gu, is giving a greeting before the special lecture. (Photo by Minjin Kim enter@)