Did 2,400 Wealthy People Leave Korea Over Inheritance Tax? National Tax Service Chief Rebuts with Full Analysis: "Annual Average Is 139"

KCCI Announces Overseas Migration of 2,400 High-Net-Worth Individuals
Countered by Recent Three-Year Data on Reported Overseas Migrants
"No Trend of Moving to Countries Without Inheritance Tax"

Lim Gwanghyun, Commissioner of the National Tax Service, stated that over the past three years an annual average of 139 people with assets of 1 billion won or more have left Korea.

On the 8th, Commissioner Lim posted on his social networking service (SNS) Facebook a fact-check article on reports filed over the past three years by people emigrating overseas, containing this information. He explained, "The Korea Chamber of Commerce and Industry (KCCI) linked the acceleration of millionaire departures from Korea to the inheritance tax system and thus provided distorted information to the public," adding, "To provide more accurate information to the public, we conducted a full analysis of all overseas emigrants who filed reports over the past three years."

Lim Gwanghyun, Commissioner of the National Tax Service. Provided by the National Tax Service

He went on to say, "From 2022 to 2024, the average annual number of Koreans filing reports of overseas emigration was 2,904, and among them, those with assets of 1 billion won or more numbered only an annual average of 139," and countered, "Per-capita assets have also been on a downward trend, standing at 9.7 billion won, 5.46 billion won, and 4.65 billion won in 2022, 2023, and 2024, respectively."

Commissioner Lim added, "We also did not find any tendency for people with large amounts of wealth to move to countries without inheritance tax," and said, "Overseas emigration is the result of a complex mix of various factors, including not only tax issues but also settlement conditions and medical and educational environments." Countries without inheritance tax were defined as 66 jurisdictions, including China, Hong Kong, Singapore, Australia, New Zealand, the United Arab Emirates (UAE), and Norway.

On the 3rd, the Korea Chamber of Commerce and Industry announced in a press release titled "Analysis of Inheritance Tax Revenue Outlook and the Effect of Diversifying Payment Methods" that the number of high-net-worth individuals who left Korea last year with assets of 1 million dollars (about 1.46 billion won) or more reached 2,400. However, controversy arose over the reliability of the survey method used by Henley & Partners, a UK immigration consulting firm that conducted the study.

Chey Taewon (left), chairman of the Korea Chamber of Commerce and Industry, and Lee Jaemyung, president. Yonhap News

In relation to this, on the 7th President Lee Jaemyung criticized, "I cannot believe that the Korea Chamber of Commerce and Industry, an official organization established by law, is publicly engaging in this kind of behavior," and said, "Deliberate fake news intended to cloud the judgment of the sovereign people is an enemy of democracy." The Korea Chamber of Commerce and Industry ultimately issued an official apology, and KCCI Chairman Chey Taewon called for measures to prevent a recurrence.

Ministers of each government department also expressed their positions. Deputy Prime Minister and Minister of Economy and Finance Koo Yooncheol said, "The estimated figures are statistics whose reliability is highly questionable," and added, "They must bear due responsibility." Minister of Trade, Industry and Energy Kim Jeonggwan also stated, "The Ministry of Trade, Industry and Energy, which has jurisdiction over the Korea Chamber of Commerce and Industry, will immediately conduct an audit of the entire process of drafting and distributing the press release, as well as all related facts, and will hold those responsible strictly accountable based on the results."