Lee Jae-myung: "Do Not Sell Your House and Leave Because of Inheritance Tax"

Comparison of Inheritance Tax Reform Plans by Both Parties on Social Media
Claims That the People Power Party's Proposal Benefits Only the Ultra-Wealthy

Lee Jae-myung, leader of the Democratic Party of Korea, stated on the 15th regarding the push for inheritance tax reform, "We will ensure that the majority of the people can benefit, so that they do not have to sell their homes and leave because of taxes, but can stay and live in the homes filled with family affection."

On the same day, Lee posted on Facebook a post titled "Inheritance Tax Reform, Which Is Correct?" In this post, Lee compared the claims of the Democratic Party and the People Power Party regarding inheritance tax reform plans.

Lee Jae-myung, leader of the Democratic Party of Korea, is speaking at the Supreme Council meeting held at the National Assembly on the 14th. Photo by Kim Hyun-min

Lee described the Democratic Party's plan as "a uniform deduction of 500 million won and a spousal deduction of 500 million won increased to 800 million won and 1 billion won respectively (tax exemption up to 1.8 billion won. Most middle-class families in the metropolitan area can inherit without selling their homes)." He then pointed out the People Power Party's plan as "insisting on lowering the top tax rate (benefiting only a few asset owners with tens of billions, hundreds of billions, or trillions of won)." He added, "Law and power are not tools for the privileges of a few," and raised his voice, saying, "It only deepens the already severe polarization, and privileged tax cuts for a few ultra-wealthy individuals must never be allowed."

Since the Democratic Party convention in August last year, Lee has advocated that "the limits on spousal and uniform inheritance tax deductions should be raised." At a policy forum held at the National Assembly on the 14th to discuss the realization of inheritance tax deductions, Lee said, "We need to seek reasonable measures," adding, "Some middle-class families worry about the inheritance tax burden on a single home. There are calls to realize inheritance tax in line with the increased housing prices and changed circumstances."

The Democratic Party is pushing a bill to amend the Inheritance and Gift Tax Act at the party level to raise the uniform inheritance tax deduction amount and the minimum spousal inheritance deduction amount. The amendment, led by Representative Lim Kwang-hyun, aims to increase the uniform inheritance tax deduction from the current 500 million won to 800 million won, and the minimum spousal inheritance deduction from the current 500 million won to 1 billion won. This is considered a 'rightward shift' policy targeting the moderate middle class, as it reduces the tax burden on the middle class, unlike the Democratic Party's traditional stance. On the other hand, the ruling party insists that the reduction of the top inheritance tax rate should also be reflected. The bill is currently under review by the Subcommittee on Finance of the Planning and Finance Committee.