Yoo Sangbeom Receives Free Enterprise Institute's '2025 Free Economy Legislative Award' for Proposing Inheritance Tax Rationalization Bill

Inheritance Tax Rate to Be Reduced from 50% to 30%
Abolition of Largest Shareholder Premium Valuation Included
"I Will Do My Best to Establish a Fair Tax Structure"

Yoo Sangbeom, a member of the People Power Party representing Hongcheon, Hoengseong, Yeongwol, and Pyeongchang in Gangwon Province, received the '2025 Free Economy Legislative Award' presented by the Free Enterprise Institute (President Choi Seungno) in recognition of his contributions, including the proposal of a bill to rationalize inheritance tax.

The Free Enterprise Institute, established in 1997 under the initiative of the late Choi Jonghyun, former chairman of Sunkyung Group (now SK Group), annually evaluates the legislative activities of National Assembly members and presents the 'Free Economy Legislative Award' based on the philosophy of liberalism and a market economy.

Yoo Sangbeom, a member of the People Power Party and recipient of the '2025 Free Economy Legislative Award' presented by the Free Enterprise Institute, is taking a commemorative photo after the award ceremony. Office of Yoo Sangbeom

This award reflects high praise for Assemblyman Yoo’s legislative activities, including the 'Partial Amendment to the Inheritance and Gift Tax Act' he sponsored in July, as well as efforts to ease the burden of business and corporate succession, improve the investment environment, and revitalize the private economy.

Under current law, the maximum inheritance tax rate in Korea is 50 percent, and when the premium valuation for shares held by the largest shareholder is applied, the effective tax rate can reach 60 percent, making it the highest among OECD countries.

In contrast, 15 out of 38 OECD countries have abolished inheritance taxes, and if countries that do not impose taxes on direct-line inheritances are included, a total of 19 countries have substantially eased the inheritance tax burden. Even among countries that maintain inheritance taxes, the average maximum rate remains around 25 to 30 percent.

The amendment to the Inheritance and Gift Tax Act proposed by Assemblyman Yoo includes: lowering the current 50 percent inheritance tax rate to the OECD average of 25 to 39 percent; the complete abolition of the 'largest shareholder premium valuation,' which has hindered corporate generational succession; maintaining domestic investment by easing the inheritance tax burden; and supporting business succession and job stability for small and medium-sized enterprises. These measures have been recognized as exemplary 'free economy legislation' in line with the principles of a market economy.

In his acceptance speech, Assemblyman Yoo stated, "Correcting the excessive burden of inheritance tax and creating a tax environment where companies can focus on investment and employment is the starting point for national competitiveness," adding, "This reflects the public's demand for the normalization of the tax system and a rational tax reform in line with OECD standards."

He further emphasized, "I will continue to do my best to correct excessive tax burdens, promote tax reforms that enhance private sector vitality, and establish a fair tax structure that is acceptable to both businesses and households."

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