3 Billion KRW Gift Tax Deduction at Marriage... Controversy Over "Golden Spoon Privilege" and "Discrimination Against Singles"

Government's 2023 Tax Reform Proposal... Marriage and Childbirth Support
"Reduced Burden of Housing Costs" vs "Encourages Wealth Inheritance"

The government raised the gift tax exemption limit for marriage funds from the current 50 million won to 150 million won, prompting various reactions among young people, including engaged couples.

While some criticize that the benefit is only for so-called 'geumsujeo' (gold spoon) families, others say it helps reduce the burden of newlyweds' housing costs.

[Photo by Asia Economy DB]

On the 27th, the Ministry of Economy and Finance announced the '2023 Tax Law Amendment' including gift tax exemptions related to marriage funds.

In addition to the basic exemption amount (50 million won over 10 years, 20 million won for minors), an additional exemption of 100 million won will be granted for marriage funds received from direct ascendants.

This means that up to 150 million won received from parents within two years before or after the marriage registration, i.e., within four years, will not be subject to gift tax.

Under current law, when direct ascendants such as parents or grandparents gift assets to adult children or grandchildren, an exemption of up to 50 million won per child (over 10 years) is allowed.

If 100 million won was received from parents as marriage funds, a gift tax rate of 10% applied to the amount exceeding the 50 million won exemption, resulting in a tax payment of 4.85 million won.

Regarding the gift tax exemption limit for marriage funds, the Ministry of Economy and Finance explained, "Considering the reality that there is a certain time gap between the wedding ceremony or marriage registration and the preparation of a newlywed home, we set the exemption application period as broadly as possible."

Opinions among young people, including engaged couples, are divided on this. Among engaged couples who planned to receive help from their parents before marriage, there is a reaction of 'relief.'

They say it helps reduce the burden of housing costs, which is the largest part of marriage expenses.

[Photo by Asia Economy DB]

On the other hand, there are reactions that this allows the 'inheritance of wealth' by 'geumsujeo' families. Those with parents who have no assets to pass down inevitably feel a relative sense of deprivation. Comments on reports related to the 2023 Tax Law Amendment include, "Are you increasing the gift tax exemption limit in the marriage market? How is this different from the state allowing wealth inheritance more?"

There is also concern that, with the increase of single-person households and non-marriage, issues of fairness with other household types such as unmarried children may arise.

According to the 2022 Population and Housing Census (registered census method) announced by Statistics Korea on the 27th, among the total 22.383 million households last year, single-person households numbered 7.502 million, an increase of 337,000 households (1.0%) compared to the previous year.

The number of single-person households has steadily increased every year since the registered census method survey began in 2015 with 5.203 million households.

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