Seoul: Acting President Choi Sang-mok on Tuesday reiterated the need to revise South Korea's decades-old inheritance tax system, stressing that taxation policies should be "reasonable" to reflect the evolving economic landscape. Speaking at a ceremony marking the 59th Taxpayers' Day in Seoul, Choi reaffirmed the government's commitment to reforming the five-stage inheritance tax scheme, which has remained unchanged for years.
According to Yonhap News Agency, Choi highlighted that outdated tax policies become obsolete and place unnecessary burdens on the public as times and circumstances change rapidly. Initially designed to tax high-net-worth individuals, the system has increasingly become a burden even on the middle class due to its failure to account for economic growth and rising asset values.
Choi announced that the government will unveil a plan in March aimed at rationalizing inheritance tax deductions and transitioning to a legacy acquisition tax system, in which taxes are levied only on inherited assets. He emphasized the government's dedication to establishing a fair tax system that aligns with public sentiment and ensures that honest taxpayers are properly recognized.