Korean Inheritance Tax for Estates in Korea

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 contacted us wishing to understand how to calculate inheritance tax and how to save on inheritance tax. Please note, that this is a basic chart, and exceptions, sometimes, apply based on particular situations. For an article on the basics of Korean Inheritance Law, please see: Korean Inheritance Law and Who Inherits What, When and How in Korea

Korean Inheritance Tax

The following is, only, meant as a brief guide. We, always, utilize 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 ClassificationAmount of Deduction/Exemption
(KRW)
Deceased Resident Deduction (Deceased Residents Only)500 million
Basic Deduction (Deceased Resident or Nonresident)200 million
Minor Child Deduction10 million times the number of years until the age of 19
Senior Citizen (65+) Deduction50 million per senior
Disabled Person Deduction10 million times the expected life remaining
Child Deduction50 million per child
Spousal Deduction500 million or more: amount inherited
Less than 500 Million: 500 million
Financial Property Deduction20 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 Deduction & Exemptions

Korean Inheritance Tax Rates (2022)

Tax base
(KRW)
Rate
(%)
Deduction
(KRW)
Less than KRW 100 million10% 
More than KRW 100 million to less than KRW 500 million20%10 million
More than KRW 500 million to less than KRW 1 billion30%60 million
More than KRW 1 billion to less than KRW 3 billion40%160 million
More than KRW 3 billion50%460 million
Korean Inheritance Tax Rates

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 inhouse for all matters concerning the expected calculation of inheritance. Please note, that many cases are complicated by the 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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