Promotion of Special Inheritance Act for Opportunity Development Zones... Han Deok-su "Preparing Briefings for Target Local Governments"

Support for Opportunity Development Zones Included in Tax Law Amendment
"Related Ministries and Local Governments Must Collaborate to Achieve Results"

The government announced the '2024 Tax Law Amendment' on the 25th, which includes a proposal to apply inheritance tax special cases to companies relocating to or starting up in Opportunity Development Zones. Prime Minister Han Duck-soo instructed related ministries and agencies to "prepare briefing sessions targeting the eight local governments with Opportunity Development Zones."

Prime Minister Han Duck-soo. Photo by Yongjun Cho jun21@

Prime Minister Han said, "Local governments have consistently hoped for measures like the inheritance tax special cases for Opportunity Development Zones to help attract companies, and the President has made a difficult decision," adding, "I urge the Ministry of Economy and Finance, the Ministry of Trade, Industry and Energy, and other related ministries and local governments to work closely together to achieve good results."

The 2024 Tax Law Amendment includes inheritance tax support measures related to the Opportunity Development Zone system, which have been prepared since October last year by nationwide cities, provinces, and central government agencies. The proposal significantly expands the scope of application compared to the existing business succession deduction system and abolishes the deduction limit.

Currently, the business succession deduction applies to small and medium-sized enterprises and mid-sized companies with sales under 500 billion KRW. The amendment includes all small and mid-sized companies that start up in Opportunity Development Zones or relocate from the Seoul metropolitan area overconcentration control zones to Opportunity Development Zones, regardless of company size. Additionally, the current standard, which provides deductions ranging from 30 billion to 60 billion KRW depending on the heir's business operation period, will have no limit, and benefits will be applied regardless of the period if eligible.

Opportunity Development Zones refer to economic zones voluntarily selected by local governments. Their purpose is to attract and support businesses belonging to industries with regional comparative advantages, thereby promoting sustainable corporate growth and balanced national land development. As of last June, 23 areas in eight cities and provinces, including Jeonnam, Jeonbuk, and Jeju, have been designated as Opportunity Development Zones.

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