Inheritance War Without Mercy as Land and House Prices Increase Wealth

Court Statistics on COVID-19③ <End>

Increase in Lawsuits Over Inherited Property
11% Rise Last Year to 2,095 Cases
Reduced Family Meetings Due to Social Distancing
Intensified Conflicts Over 'Let's Follow the Law'

[Asia Economy Reporters Seongpil Cho and Daehyun Kim] Choi Gyuwon (52, pseudonym) visited the court last December. After his father passed away, he could not reach an agreement with his mother and younger sibling over the inheritance. The inherited assets consisted of an apartment (appraised at 810 million KRW) and savings (80 million KRW). The savings could be divided according to the inheritance ratio. The apartment was the issue. Mr. Choi demanded additional cash based on the inheritance ratio in exchange for giving up his share of the apartment, but his mother and sibling flatly refused. Ultimately, Mr. Choi filed a lawsuit requesting a court judgment on the division of the inheritance. The court's decision is currently pending.

Cases of lawsuits among bereaved families over inheritance assets are reportedly increasing. This is interpreted as a result of growing economic uncertainty due to the COVID-19 pandemic, while asset values have surged, leading to more related disputes. According to the Court Administration Office, the number of lawsuits requesting court judgment on inheritance division filed at family courts nationwide last year totaled 2,095 cases. This represents an approximately 11% increase compared to 1,887 cases the previous year. The number of such lawsuits has shown an increasing trend annually: 1,233 cases in 2016, 1,403 in 2017, and 1,710 in 2018. Last year also continued this upward trend. This increase is also confirmed by law firms. A family law specialist at a major law firm said, "The number of clients visiting law firms for inheritance division cases has significantly increased."

The legal community cites the "surge in asset values" as the reason for the rise in lawsuits requesting court judgment on inheritance division. In particular, over 3,000 trillion KRW was injected into the market last year due to the COVID-19 situation. This money flowed into real estate, causing land and housing prices to soar. When real estate is included in the inheritance, the "pie" has grown so large that simply giving up is no longer an option. Attorney Kim Sanghoon of Gaon Law Firm said, "A single apartment in Seoul can be worth between 1 to 3 billion KRW. In the past, even if the eldest son took everything, it was not a big concern, but now the situation has changed."

The government's strict social distancing measures to prevent the spread of COVID-19, which reduced family meetings, are also cited as a cause. Attorney Kim explained, "There have always been many disputes among family members living apart, but COVID-19 has exacerbated this. Problems that could have been resolved through frequent meetings have accumulated, leading to the phrase 'let's do it by law.'" There is also an analysis that the rise in women's awareness of their rights has had an impact. Attorney Lim Chaewoong of Taepyungyang Law Firm said, "Recently, lawsuits filed by women against their male siblings have increased. In the past, property was mainly inherited by sons, but now daughters are asserting their rights."

Experts advise that, given the nature of lawsuits requesting court judgment on inheritance division, which make finding a middle ground difficult, "preparation in advance is best." A lawyer who requested anonymity said, "Because lawsuits are filed with the intention of severing family ties from the start, compromise and mediation are difficult. The deceased should prepare wills or other documents in advance to organize matters and minimize disputes among children." Attorney Kim also advised, "During the lawsuit process, emotions become entangled, making rational division negotiations difficult. Utilizing systems such as testamentary trusts, which take effect during the deceased's lifetime, can be one alternative."

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