The government plans to revise the system to allow inheritance tax to be paid with shares of listed companies instead of cash. Currently, only unlisted shares and real estate can be used to pay inheritance tax instead of cash.

Lee Jae-myung, the president, speaks at the Ministry of Economy and Finance (National Tax Service·tariff Service·Public Procurement Service)-National Data Office briefing on "An economy making a big leap in 2026, trusted data," held at the Government Sejong Convention Center in Sejong on the 11th. /Courtesy of the Presidential Office

On the 11th, Lee Jae-myung, the president, asked during a Ministry of Economy and Finance briefing, "Isn't the idea to allow listed shares as a method of paying inheritance tax going forward?" In response, the Presidential Chief of Staff for Policy Kim Yong-beom said, "We are reviewing it with the tax office." Kim added, "(Even if they are listed shares,) if the amount is large, it is meaningful for the government to accept them as inheritance tax in kind."

Under the current Inheritance and Gift Tax Act, when there is no cash to pay inheritance tax, real estate and unlisted shares of equivalent value can be paid instead. Previously, after Nexon founder Kim Jeong-ju died three years ago, the bereaved family paid 4.7 trillion won in inheritance tax with shares of NXC, an unlisted company.

Recently, there have been repeated cases in which a major shareholder sold a large portion of their equity to pay inheritance tax, causing the stock price to plunge. As a result, demands have poured in from individual investors to improve the system of paying inheritance tax in kind. People Power Party floor leader Song Eon-seog in September introduced a bill to revise the Inheritance and Gift Tax Act to include listed shares among the assets eligible for in-kind payment.

The government has said it will create a Korea-style sovereign wealth fund next year and is reviewing a plan to use shares paid in kind as a funding source. Deputy Prime Minister and Minister of the Ministry of Economy and Finance Koo Yun-cheol said, "Shares received in kind can also become a funding source (for the Korea-style sovereign wealth fund)," adding, "Right now, for what we receive in kind, we simply focus on selling, but if they come in as a funding source for the sovereign wealth fund, we could buy more if needed, or sell them with management rights attached, and wouldn't various forms be possible?"

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