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 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 (KRW)
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 Deduction/Exemption/Limit Chart.

Korean Inheritance Tax Rates (2022)

Tax base (KRW)	Rate (%)	Deduction (KRW)
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 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 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.