President Lee Jae-myung ordered that the inheritance tax deduction cap be raised to 1.8 billion won. However, he said he does not agree with lowering the general inheritance tax.
On the 11th at the Blue House state guesthouse, President Lee held a news conference marking 100 days in office under the theme "100 days for recovery, growth for the future." Asked about plans to overhaul the inheritance and gift tax, he said, "I cannot agree with lowering the general inheritance tax," adding, "However, I think it is necessary to raise the inheritance tax deduction cap."
The current inheritance tax deduction cap is 1 billion won, combining a flat deduction of 500 million won with a minimum spousal deduction of 500 million won. The Democratic Party of Korea has drawn up a plan to raise this inheritance tax deduction cap to a total of 1.8 billion won by increasing the flat deduction to 800 million won and the minimum spousal deduction to 1 billion won.
President Lee said, "One day a homeowner dies, leaving a spouse and children, and if the home price exceeds 1 billion won, they have to pay tax," adding, "If they have no money, they must sell the house and leave, which is too cruel." He continued, "It is already distressing that a family member has died, but it makes no sense to be kicked out for suddenly having to pay tax just because of the death," adding, "Let's raise the flat deduction and the spousal deduction so there is no tax up to 1.8 billion won."
At the news conference, President Lee said, "Let's get this done this time," and Kim Yong-beom, the Presidential Chief of Staff for Policy at the presidential office, replied, "I will consult with the policy committee."