PPP Submits Bill to Abolish Spousal Inheritance Tax With All Members' Support... 'Full Review If Democratic Party Bill Is Introduced'

Ruling and Opposition Parties Agree to Review Bills in Tax Subcommittee
Momentum Builds for Abolishing Spousal Inheritance Tax

On March 17, the People Power Party (PPP) submitted a revision to the Inheritance and Gift Tax Act (IGTA) that would abolish the inheritance tax for spouses, with all party members listed as co-sponsors. If related bills are also introduced by the Democratic Party of Korea and others, both ruling and opposition parties plan to pass legislation that would exempt spouses from inheritance tax upon the death of a partner.

PPP lawmakers on the National Assembly’s Strategy and Finance Committee, including Park Sooyoung, submitted the IGTA amendment bill to the National Assembly’s bill division on the same day, with the main focus on abolishing the inheritance tax for spouses.

Yonhap News

After submitting the bill, Assemblyman Park stated, “We have submitted the IGTA amendment bill, which was sponsored by Kwon Youngse, the acting leader of the PPP’s emergency committee, with signatures from 108 party members.” He added, “Chairman Kwon argued that inheritance tax should not be imposed between members of the same generation, and the Democratic Party leader also agreed, making this a bipartisan agreement.” The inheritance tax bill will be reviewed and then presented to the full committee of the Strategy and Finance Committee and the plenary session of the National Assembly.

Previously, on March 6, Chairman Kwon stated at the emergency committee meeting, “Reforming the inheritance tax is a public demand,” and declared, “We will completely abolish the inheritance tax for spouses.” He explained, “Inheritance between spouses who have built their assets together is not a transfer of wealth between generations,” and pointed out that “most advanced countries, including the United States, the United Kingdom, and France, do not tax inheritance between spouses.” The next day, on March 7, Democratic Party leader Lee Jaemyung said, “Exempting spouses from inheritance tax is a horizontal transfer of assets, and considering that property is divided in divorce, it is reasonable in its own way,” adding, “Since the PPP seems to agree on raising the unified deduction amount for inheritance tax, I will also agree to abolish the inheritance tax for spouses.” With both party leaders expressing their intention to abolish the spouse inheritance tax, discussions on this issue have gained momentum.

Regarding the schedule for the Tax Subcommittee, which will review the bill, Assemblyman Park said, “The Tax Subcommittee will set the schedule after both the PPP’s bill and a bill proposed by Democratic Party lawmaker Lim Gwanghyun are submitted, and the necessary procedures are followed.”

In addition, the PPP intends to discuss other issues, such as lowering the top inheritance tax rate, even though these are not matters of bipartisan agreement. Assemblyman Park explained, “Korea has the highest inheritance tax rate in the world,” and emphasized, “We believe the top rate, or at least the surcharge, should be abolished, but the majority opposition party is currently against it. We will continue to persuade them.”

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