Choi Jin-sik, Chairman of the Federation of Medium-Sized Enterprises, Meets Deputy Prime Minister to Propose Improvements to Inheritance and Gift Tax Systems

14th '185th Mid-sized Company CEO Luncheon Lecture Inviting Choi Sang-mok, Deputy Prime Minister for Economy'

To secure and strengthen the continuity of enterprises, which are the foundation of national economic development, it was suggested that the inheritance and gift tax system, a major obstacle in management and succession, should be progressively improved.

Choi Jin-sik, Chairman of the Korea Federation of Medium-sized Enterprises, stated this on the 14th at the 185th Medium-sized Enterprise CEO Luncheon Lecture hosted by the Federation, inviting Deputy Prime Minister for Economy Choi Sang-mok. He argued, “The inheritance tax rate, which is among the highest in the OECD, should be lowered to the OECD advanced countries’ average level of 15%, and the burden of gift tax should also be drastically eased based on policy deliberation.”

Choi Jin-sik, Chairman of the Korea Federation of Medium-sized Enterprises (right), is delivering the 'Policy Proposal for Medium-sized Enterprises to Build a Growth Ladder and Revitalize the Economy' to Choi Sang-mok, Deputy Prime Minister for Economy.

Chairman Choi said, “As elderly founders who started during the high-growth period are physically facing the crossroads of inheritance and gifting, reforming inheritance and gift taxes is not an option but a necessity,” adding, “We must actively support corporate succession as a rational means to secure the continuity of the national economy and enterprises, breaking away from the distorted political perception of wealth inheritance.”

The Federation delivered a total of thirty policy proposals for medium-sized enterprises to Deputy Prime Minister Choi Sang-mok, including ‘Improvement of sales criteria for tax support for medium-sized enterprises,’ ‘Reduction of inheritance tax rates,’ ‘Reduction of corporate tax,’ ‘Improvement of the minimum tax system,’ ‘Relaxation of protection for regular employee employment,’ and ‘Easing asset requirements for voluntary establishment and conversion of holding companies for medium-sized and small enterprises,’ aimed at building growth ladders and revitalizing the economy.

Deputy Prime Minister Choi emphasized in his lecture titled “Vibrant Livelihood Economy, 2024 Economic Policy Direction,” “The government will focus its policy capabilities on recovering the livelihood economy and managing potential risks, while prioritizing the creation of sustainable jobs and realizing a dynamic economy for future generations by swiftly implementing related policies. In particular, to realize a dynamic economy, we will actively promote growth from small and medium-sized enterprises to medium-sized and large enterprises, and pursue measures to build growth ladders that enhance the vitality of the entire economy.”

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