FKI "Welcoming Tax Support for U-Turn Companies... Regrettable That Inheritance Tax Reform Is Missing"

Choo Kwang-ho, Head of Economic and Industrial Headquarters, Comments on Tax Law Amendment
"Hope for Supplementary Revisions Such as Changing Inheritance Tax to Inheritance Acquisition Tax"

The Federation of Korean Industries (FKI) on the 27th welcomed the government's tax law revision plan announced this year, stating that it includes provisions that strengthen tax support for returning (domestic return) companies and invigorate corporate investment. However, it expressed regret that the reform of the inheritance tax system was omitted.

In a statement issued under the name of Choo Kwang-ho, Head of the Economic and Industrial Headquarters at FKI, it said, "The government's current tax law revision plan is expected to serve as a catalyst for revitalizing our economy by stimulating the weakened corporate investment."

FKI stated, "The designation of biopharmaceuticals as a national strategic technology and the expansion of tax support for video content production costs will contribute not only to boosting domestic demand and exports through investment and employment activation but also to expanding growth potential."

It added, "Strengthening tax support for returning companies and introducing tax credits for overseas resource development investments will promote the return of overseas companies to Korea and help mitigate global supply chain risks."

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho Photo by Hyunmin Kim kimhyun81@

It expressed regret that some issues, such as the reform of inheritance tax, were omitted. FKI said, "It is unfortunate that measures to enhance industrial and corporate competitiveness, such as the expansion of general technology research and development (R&D) tax credits and the reform of the inheritance tax system, were not included in the tax law revision plan."

It continued, "We hope that sufficient improvements and supplements will be made during the future legislative discussion process to provide our companies with a foundation to gain competitiveness and lead the market on the global stage."

During the discussion process of this year's tax law revision, the government considered changing the existing inheritance tax system from an estate tax to an inheritance acquisition tax, but due to criticism of it being a 'tax cut for the wealthy,' it was deferred as a mid- to long-term task rather than included in this tax law revision.

The estate tax is a method of levying inheritance tax on the total amount of property left by the person transferring the assets. The inheritance acquisition tax is a method of collecting inheritance tax only on the property acquired by the individual inheritor, rather than progressive taxation on the entire estate.

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