Economic Five Organizations Including the Korea Federation of SMEs Hold a Meeting with Lee Jaemyung, Presidential Candidate of the Democratic Party of Korea
The mid-sized business community met with Lee Jaemyung, the presidential candidate of the Democratic Party of Korea, to emphasize the need for reforming the inheritance and gift tax system.
Jinshik Choi, Chairman of the Korea Federation of SMEs, stated at the "Meeting with Lee Jaemyung, Presidential Candidate of the Democratic Party of Korea," hosted by the five major economic organizations on May 8, that "for more than 60% of business leaders who are over 60 and must consider the future, business succession is the most urgent and pressing issue." The meeting was organized by the Korea Chamber of Commerce and Industry, the Korea Employers Federation, the Federation of Korean Industries, the Korea International Trade Association, and the Korea Federation of SMEs. Its purpose was to listen to the candidate's policy vision and directly convey the business community's perspectives on overcoming domestic and international economic crises to the presidential candidate.
Jinshik Choi, Chairman of the Korea Federation of SMEs
At the event, Chairman Choi pointed out, "Reforming the inheritance and gift tax system has remained stagnant, trapped in ideological and partisan debates." He added, "The maximum inheritance and gift tax rate in Korea is 50%, and with the premium valuation applied, it can reach up to 60%, which is the highest in the world." He argued that only by lowering this burden to 30%, which is the level of major OECD countries, can sustainable corporate growth be achieved.
Chairman Choi further stated, "Under the current system, even after just two generations, a 100% stake is reduced to 16%, making business succession nearly impossible." He continued, "Because it is difficult to maintain stable management in Korea, more business owners are relocating their companies overseas or giving up management altogether." He also added, "The loss of the know-how and entrepreneurial spirit accumulated by founders over many years is a significant loss not only for individuals but also for the national economy."
He went on to emphasize, "Business succession is not a transfer of wealth, but a transfer of quality jobs and a mission to provide future generations with the driving force for national wealth creation."
At the event, the economic organizations presented candidate Lee with a policy proposal booklet titled "The 21st Presidential Election - Proposals from the People and Businesses for Future Growth," which was jointly prepared by gathering the opinions of the public and member companies of each organization.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
