Politics · South Korea · 8 hrs ago
Parties clash over inheritance tax relief, both question property tax increases
South Korea’s ruling and opposition parties clashed over tax relief for family business inheritances at a parliamentary tax debate on Nov.
9.
The ruling party said the relief has grown too generous, while the opposition argued the government’s proposed conditions would make business succession harder.
The government plan would limit eligible businesses to 727 industries and generally raise the required management period from 10 years to as long as 30.
It would also extend post-inheritance oversight from five years to 10, while raising the maximum deduction from 600 billion won to 1 trillion won.
The parties also questioned plans to strengthen the comprehensive real estate tax, including a proposed increase in the assessment ratio from 60% to as much as 80%.
Their concerns mean the property tax proposals could be revised as lawmakers review the tax package.
The National Assembly’s tax subcommittee is due to examine the government plan and lawmakers’ bills this month, before further committee review and a possible vote by the full Assembly.
Lawmakers from the governing and opposition parties clashed over proposed changes to inheritance tax relief for family businesses at a tax-reform forum on Nov. 9.
The governing party argued that the relief was already too broad, while the opposition said the proposed eligibility rules would make business succession harder.
The government plan would limit eligibility to 727 industries and extend the required business-management period to as long as 30 years.
It would also raise the maximum deduction from 600 billion won to 1 trillion won and extend the post-inheritance monitoring period from five to 10 years.
Both parties raised concerns about plans to increase property taxes, leaving open the possibility of changes during parliamentary review.
- Who
- Governing and opposition lawmakers, including Oh Ki-hyung and Bae Joon-young.
- What
- They disagreed over proposed family-business inheritance tax relief but both questioned planned property tax increases.
- When
- Nov. 9, 2026, at a tax-reform forum.
- Where
- The National Assembly in South Korea.
- Why
- The proposed inheritance relief rules prompted opposing views on tax fairness and business succession; both sides also questioned the property tax changes.
Governing party
Opposition party
Scale of family-business relief
Governing party
Oh Ki-hyung said the relief had become too broad and should be subject to stricter rules.
Opposition party
Bae Joon-young said the proposed requirements ignored uncertain business conditions and would hinder succession.
Property tax policy
Governing party
Oh questioned differentiating property tax by whether a home is occupied and whether an increase in the assessment ratio is needed.
Opposition party
Bae criticized the government’s approach, saying higher property taxes could be passed on to tenants.
The National Assembly Budget Office held a forum on the 2026 tax reform plan, where lawmakers debated inheritance relief and property taxes.
The National Assembly’s tax subcommittee is due to review the government’s tax reform plan and lawmakers’ bills.
The bills are due to proceed through the Finance and Economy Committee before reaching a plenary session.
- Eligibility
- Government plan limits relief to 727 industries
- Management period
- Would rise from 10 years to as long as 30 years
- Maximum deduction
- Would rise from 600 billion won to 1 trillion won
- Post-inheritance monitoring
- Would increase from 5 years to 10 years
- Property tax assessment ratio
- Government plans to raise it from 60% to as much as 80%
1 source
What people are saying
excessive. Too generalized
Since this is a holding tax, if ownership is the focus, is it appropriate to distinguish between residence and non-residence?
This is desk-bound administration that disregards an unpredictable business environment.
Tax policy is economic policy, not ideological policy.