From BigGo Finance · BigGo Finance · · 1m 30s
South Korea's SMEs Push Back on Family Business Inheritance Rules
South Korea's small businesses oppose new inheritance tax rules requiring 30 years in business for family succession.
In brief
South Korea's small businesses oppose new inheritance tax rules requiring 30 years in business for family succession. South Korea's small business lobby rejects government plan to extend family business inheritance requirements from 10 to 30 years. Originally reported by BigGo Finance.
Government Proposes Family Business Inheritance Change
South Korea's Ministry of Economy and Finance submitted a bill to extend family business inheritance requirements from 10 to 30 years.
SMEs Oppose 30-Year Requirement
The Korea Federation of SMEs argues 94.4% of South Korea's 8.3 million SMEs have been in business 25 years or less.
Operating Period Extended to 30 Years
The bill would extend the decedent's required operating period from 10 to 30 years and the heir's prior service period from 2 to 5 years.
New Review Committee Introduced
The amendment creates a review committee to determine if companies qualify for the family business inheritance deduction.
SMEs Warn of Fairness Issues
The Korea Federation of SMEs says excluding supermarkets, hospitals and pharmacies from eligible businesses creates fairness problems.
Industry Eligibility Divides
Book publishing remains eligible while newspaper publishing is excluded under the new rules.
SMEs Request Policy Reversal
The Korea Federation of SMEs asked the Ministry of Economy and Finance to keep current rules and eligible business categories unchanged.
Government Shifts Policy Focus
The Lee Jae-myung administration is moving toward corporate succession instead of expanding family business succession.
At a glance
South Korea's small business lobby rejects government plan to extend family business inheritance requirements from 10 to 30 years.
