Finance Minister Choi Sang-mok said Thursday that reforming inheritance tax should be a priority and details of a potential revision would be available next month.

Choi made the remarks during a forum with newspapers and broadcast editors in Seoul in an answer to a question about the government’s priority regarding tax code revision.

“In terms of urgency, I personally prioritize how to reform inheritance tax. The tax rate is quite high and the scheme has not been revised for more than 20 years, so it needs to be revised in a reasonable way,” Choi said.

The government will gather various opinions and reach a consensus so as to come up with a possible revision in late July.

South Korea has a top inheritance tax rate of 50 percent in the case the value of inherited assets exceed 3 billion won (US$2.16 million), which is the world’s second-highest level after Japan among the Organization for Economic Cooperation and Development member nations.

The tax rate rises to 60 percent for those inheriting shares in m
ajor companies.

President Yoon Suk Yeol has pointed to the “excessive” taxation under the scheme, and Sung Tae-yoon, national policy director at the presidential office, has called for lowering the rate to around 30 percent to minimize its impact on the succession of family businesses.

But critics have said it is only for a handful of rich and large conglomerates, and a series of tax reductions would worsen the government’s fiscal health.

Source: Yonhap News Agency