The Korean government is addressing misconceptions about its inheritance tax rates and expanding financial counseling services for youth. Recent media reports highlighted concerns about Korea’s high nominal inheritance tax rates and their impact on business succession. The Ministry of Economy and Finance clarified that inheritance tax should be evaluated alongside support systems designed to mitigate wealth concentration. The government maintains that only 5.9% of all inheritors are subject to inheritance tax, and assets below KRW 1 billion are generally exempt due to lump-sum deductions.
Young people across Korea are now eligible for free, personalized financial counseling. This service allows youth to conduct basic financial diagnostics and receive expert advice on income, spending, assets, and debt management. Case studies include a 20-year-old freelancer learning to plan finances and a 30-year-old office worker receiving guidance on mortgage restructuring. The Financial Services Commission is enhancing counselor training and offering both in-person and online consultations to ensure accessibility.
The government is actively implementing these policies, with expanded financial counseling platforms and strengthened support for business succession. Inheritance tax can be paid in installments over up to ten years, and various exemptions and deferrals are available for business inheritance. The comprehensive platform now enables youth to access financial counseling and related services, such as loans and savings, in a streamlined manner.
Frequently asked questions include: Who is subject to inheritance tax? Only 5.9% of inheritors, typically those with assets above KRW 1 billion, are taxed. How can youth access financial counseling? Services are available both online and in-person, with trained counselors providing tailored advice. What support exists for business succession? The government offers installment payment options and exemptions to reduce tax burdens during succession.
Korea’s policy adjustments reflect a nuanced understanding of both tax equity and youth financial needs. The government’s clarification of inheritance tax rates and exemptions, combined with expanded financial counseling, addresses misconceptions and provides practical support. These measures are grounded in data, such as the low percentage of inheritors subject to tax, and real-world case studies. The comprehensive platform and strengthened counselor training are likely to improve financial literacy and stability among youth, while easing business succession concerns.