President Lee Jae-myung: "Inheritance Tax Deduction to Be Raised to 1.8 Billion Won, Amendment Planned"

President Lee Jae-myung's 100th Day Press Conference
"I Do Not Agree with Lowering the General Inheritance Tax"

On the 11th, at the Blue House State Guesthouse, during President Lee Jae-myung's 100-day inauguration press conference, Chief Secretary Kang Hoon-sik is adjusting the tilted panel in front of the president's desk. Photo by Yonhap News

On September 11, President Lee Jae-myung announced plans to amend the tax law to raise the inheritance tax deduction limit to 1.8 billion won. However, he stated, "I cannot agree with lowering the general inheritance tax."

During a press conference marking his 100th day in office, held at the Blue House State Guesthouse that day, President Lee responded to a question regarding the inheritance tax deduction, saying, "My position has not changed," and reiterated his stance. President Lee had previously pledged to ease the inheritance tax during his presidential campaign.

President Lee explained, "Housing prices in Seoul have gone up, but the deduction was set a very long time ago. The spousal deduction, which was set 28 years ago, is 500 million won, and the general deduction is also 500 million won. So, if the inheritance exceeds 1 billion won, you have to pay taxes."

He continued, "If a homeowner passes away and the spouse and children remain, and the house is worth more than 1 billion won, they have to pay 30 to 40 percent tax on the portion exceeding that amount. Since they don't have cash, they have to sell the house and leave, which I think is too harsh."

President Lee further stated, "We should allow people to continue living in their homes as long as the value does not exceed the average price of a house in Seoul. My pledge at the time was to exempt up to 1.8 billion won from taxation." He added, "Since I made that promise, I believe we should amend the law this time."

President Lee instructed Policy Chief Kim Yong-bum, "We need to revise the inheritance tax law. Let's take care of it this time." Chief Kim replied, "I will discuss it with the policy committee."