Korea Chamber of Commerce and Industry proposes boosting corporate inheritance tax by 1 trillion yen, reducing economic growth by 0.63%

The Korea Chamber of Commerce and Industry published a report titled "Problems with inheritance and improvement policies." In it, the chamber stated, "Korea's current inheritance tax is a factor that hinders economic dynamism rather than a redistribution of wealth.
The inheritance tax rate, which rose from 40% in 1996 to 50% in 2000, needs to be lowered, and the inheritance and gift tax burden on public interest corporations funded by companies needs to be eased.
"A study by Seoul University professor Song Hong-jae, based on data from the Organization for Economic Cooperation and Development (OECD) from 1965 to 2013, found that if inheritance tax were to increase by 1 trillion won (
The Chamber of Commerce said, "While investment has stagnated, the amount of inheritance and gift tax collected has fallen to 1.5 trillion yen in 1997.
"It has grown 9.7-fold from 1 billion won (approximately 172.263 billion yen) in 2019 to 14.6 trillion won (approximately 1.6766 trillion yen) in 2022," he said.
Meanwhile, according to the Pie Touch Institute, a research institute for small and medium-sized enterprises, the inheritance tax rate for businesses in innovative industries such as information and communications will be reduced by 30 percentage points.
It is estimated that if the tax rate is increased by 1.2 trillion won (US$6,000), real GDP would increase by 6 trillion won (US$6,000), and 30,000 jobs would be created. The Chamber of Commerce and Industry (CCI) said, "In the medium to long term, we should abolish inheritance tax and switch to capital gains tax.
"We need to innovate our system to boost economic vitality," he said.