# 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.
- Title: South Korea's SMEs Push Back on Family Business Inheritance…
- Summary: South Korea's small businesses oppose new inheritance tax rules requiring 30 years in business for family succession. South Korea's small business lobby…
- Keywords: south korea, small business, family business inheritance, inheritance tax, sme, korea federation of smes, ministry of economy and finance, national assembly, finance, markets, South, Korea's
- Source: BigGo Finance — https://finance.biggo.com/news/0301166b-c36c-463f-be9b-fb11cfa923f8
- Author: BigGo Finance
- Published: 2026-10-22T01:55:15+00:00
- Read time: 1 min
- Topics: south korea, small business, family business inheritance, inheritance tax, sme, korea federation of smes, ministry of economy and finance, national assembly, finance, markets
## 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.
## Key takeaway

South Korea's small business lobby rejects government plan to extend family business inheritance requirements from 10 to 30 years.