IPG Legal lawyers handled numerous inheritance and inheritance tax matters over our nearly two decades handling cases for expats, families abroad, domestic families and foreigners with residence in Korea. The Korean Inheritance Tax Deductions Chart and the Korean Inheritance Tax Rate Chart were drafted, since many clients contact us wishing to understand how to calculate inheritance tax and how to save on inheritance tax.
The following is, only, meant as a brief guide. We, always, rely on an inhouse accountant to calculate the expected inheritance tax because of the complexity of the system and the number of exclusions and exemptions to the basic Korean Inheritance Tax Rules.
Korea Inheritance Tax Deductions/Exemptions (2022)
|Deduction Classification||Amount of Deduction/Exemption|
|Deceased Resident Deduction (Deceased Residents Only)||500 million|
|Basic Deduction (Deceased Resident or Nonresident)||200 million|
|Minor Child Deduction||10 million times the number of years until the age of 19|
|Senior Citizen (65+) Deduction||50 million per senior|
|Disabled Person Deduction||10 million time expected life remaining|
|Child Deduction||50 million per child|
|Spousal Deduction||500 million or more: amount inherited|
Less than 500 Million: 500 million
|Financial Property Deduction||20 million or less: amount inherited|
20 million to 100 million: 20 million
100 million to 1 Billion: NET x 20%
More an 1 Billion: 200 million.
(3 Billion Limit)
Korean Inheritance Tax Rates (2022)
|Less than KRW 100 million||10%|
|More than KRW 100 million to less than KRW 500 million||20%||10 million|
|More than KRW 500 million to less than KRW 1 billion||30%||60 million|
|More than KRW 1 billion to less than KRW 3 billion||40%||160 million|
|More than KRW 3 billion||50%||460 million|
Korean Inheritance Tax is calculated by multiplying the tax rate by the tax base. This is only a quick teaser. The calculation method has many exclusions based on the specific case situation and requires an accountant. Thus, we always consult with an accountant we have in house for all matters concerning the expected calculation of inheritance. Please note, many cases are complicated by choice of law and residency rules.
If you would like to consult with an attorney, please schedule a call with an attorney here.
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