Lee & Ko (LLC) Gwangjang held a taxes forum to analyze the government's 2026 tax reform plan and recent tax audit trends and to discuss response strategies for corporations.
Gwangjang said on the 1st that it held the "2026 Gwangjang taxes forum" at Ferrum Tower in Jung-gu, Seoul, on the 28th. About 200 people, including representatives from corporations, attended the event.
The forum covered key elements of the tax reform plan announced on the 3rd, including the overhaul of the tax regime for treasury stock, valuation methods for listed shares, tax deferral on qualifying spin-offs of overseas subsidiaries, and the family business succession tax regime, as well as response measures to corporate tax audits.
Before the main session, Choi Jin-gyu, head of the Tax Policy Division at the Ministry of Finance and Economy, explained the government's direction for the tax reform and the purpose of the amendments under the theme "The gist and policy implications of the August 2026 tax reform plan."
In the first session, Gwangjang attorney Lim Han-sol gave a presentation on "capital transactions, stock valuation, and the domestic production tax credit." Lim said of the overhaul of the tax regime for treasury stock, "It is a fundamental change that regulates treasury stock transactions as capital transactions regardless of the purpose of acquisition," adding, "With two different tax regimes coexisting around Jan. 1, 2027, the effective date, it is necessary to pay close attention to tax treatment."
Regarding the revision of valuation methods for listed shares, he advised checking where the price-to-book ratio (PBR) stands within the industry on a semiannual basis and securing in advance materials related to management judgment so that it can be demonstrated there was no purpose of tax avoidance.
Attorney Kim Min-gu explained "major amendments to international taxation and family business succession." Kim noted that, as the tax deferral scheme for qualifying restructurings of overseas subsidiaries is being revised, corporations considering restructuring need to schedule with the implementation timing in mind. Regarding the newly introduced special tax rules for third-party business succession, Kim said both the largest shareholder transferring the business and the third party acquiring it can receive tax benefits, so it should also be reviewed from an acquisition strategy perspective.
Tax accountant Kim Tae-woo, a former head of Audit Team 1 at the Investigation Bureau 1 of the Seoul Regional Tax Service, introduced key verification items in large corporate tax audits and changes in audit administration. Based on recent Supreme Court rulings and the amended Attorney‑at‑Law Act, Kim also proposed ways to invoke attorney‑client privilege (ACP) during tax audits.
Kim Sang-hoon, co-leader of Gwangjang's taxes group, said, "This reform plan goes beyond simple revisions to provisions and contains significant institutional changes," adding, "Even before the provisions are finalized, it is time for proactive review."
Gwangjang's taxes group consists of about 90 professionals, including attorneys, certified public accountants, and tax accountants, and handles work such as tax advisory, tax disputes, responses to tax audits, and international taxation.