1,771 Minors with Financial Income Exceeding 20 Million Won... Impact of Wealth Inheritance

[Asia Economy Reporter Kwangho Lee] According to data on the 'Comprehensive Tax Reporting Status of Financial Income of Minors' received by Democratic Party lawmaker Goyongjin, a member of the National Assembly's Planning and Finance Committee, from the National Tax Service on the 7th, the number of minors whose combined financial income from interest and dividends exceeded 20 million KRW reached 1,771 as of 2018. The financial income reported by these minors amounted to 189 billion KRW, averaging over 100 million KRW per person.

As of 2018, the number of people who reported comprehensive taxation on financial income exceeding 20 million KRW was 128,967, representing only 2.5% of the total population, consisting of high-net-worth individuals.

The financial income reported by these individuals totaled 17.7782 trillion KRW, with an average financial income of 137.85 million KRW per person. Eighty-six percent of this financial income was dividend income from stocks, amounting to 15.2523 trillion KRW. The dividend income reported to the National Tax Service in 2018 was 19.6856 trillion KRW, of which 77% was accounted for by those subject to comprehensive taxation on financial income.

The number of minors reporting financial income was 1,771, declaring 189 billion KRW. Ninety-eight percent of minors' financial income was dividend income, indicating that financial assets are largely inherited through stocks.

By age group, 272 preschool children reported 21.5 billion KRW in financial income. On average, each earned 79.78 million KRW in income from financial assets inherited from their parents. Twenty newborns aged 0-1 also reported 2.856 billion KRW in dividend income, exceeding 140 million KRW per person.

Next, 556 elementary school students reported 58.1 billion KRW (104.5 million KRW per person). Minors in middle school and above numbered 943, reporting 109.2 billion KRW (115.8 million KRW per person) in financial income.

The number of minors with financial income exceeding 20 million KRW has been increasing by more than 200 each year. In 2014, 717 minors reported 97.1 billion KRW in financial income, increasing by 1,054 over four years.

The financial income reported by these minors increased from 97.1 billion KRW in 2014 to 189 billion KRW in 2018. Over five years, the total financial income reported by them reached 643.4 billion KRW.

Meanwhile, the number of minors receiving dividend income was 182,281 as of 2018, with total dividend income amounting to 264.7 billion KRW. Among them, the top 10 recipients received 33.4 billion KRW in dividend income, averaging over 3.3 billion KRW per person. Converted at a market dividend yield of 2.3%, this corresponds to holding stocks worth approximately 76 billion KRW per person.

Lawmaker Go pointed out, "The increase in minors' financial income is largely due to wealth inheritance through early gifts." He added, "A thorough investigation is needed to ensure there has been no tax evasion in the process of stock and real estate gifts to minors."

This content was produced with the assistance of AI translation services.