Inheritance tax rates vary by each country,... but South Korean heirs pay some of the most in the OECD. <br />In light of recent controversies... regarding family succession in many Korean businesses,... debate has emerged... on whether the rate should be lowered or maintained.<br />Cha Sang-mi has more. <br />The so-called 'silver spoon' effect,... a life-long advantage given to children of affluent families... is something that's often looked down upon,... particularly by people in Korea. <br />Inheritance taxes,... levied on inherited property, money or possessions,... has therefore been a thorny issue.<br />"South Korea’s top rate of inheritance tax is 50 percent-- the second highest in the OECD. This figure is well above the OECD average, and over ten OECD members have no taxes at all on inheriting property."<br />Experts say the gap is due to the recent scrapping or lowering of inheritance taxes,... in many OECD countries like the U.S. and Germany.<br />Small business owners have called for widened tax exemptions on SMEs... while many civic groups say the status quo should be maintained.<br />One expert points out... that the exemption criteria is too narrow.<br />"Exemptions for business heirs only apply to an estate worth between 17-point-5 million to 44 million U.S. dollars, and there are other strict requirements."<br />Mr. Lim says a rate between 25 to 30 percent would be most appropriate... in consideration of the OECD average of 26 percent.<br />And for companies to avoid any backlash regarding these exemptions,... he said the savings should be recirculated for the benefit of society,... through donations or job creation.<br />Regarding concerns... that a high tax burden on estates is detrimental to businesses,... Professor Park says it's a misconception.<br />"It is misleading to say that there aren't many good companies here because of the high inheritance tax rate. Strong businesses are created first, before issues on inheritance are ever dealt with."<br />Professor Park points out that the government,... should rather shift its focus on policies such as deregulation... to allow firms to grow. <br />Cha Sang-mi, Arirang News. <br />
