How inheritance tax works in South Korea
South Korea uses an estate-style inheritance-tax system. For a resident decedent, the starting estate generally includes domestic and foreign property, valued at the date of death, with debts, funeral costs, prior gifts and permitted deductions considered before the progressive rates apply.
For a non-resident decedent, Korean-situs property is generally the central scope, and the available deductions can be narrower. Residence, domicile, asset location, citizenship, prior gifts and treaty or foreign estate-tax relief need to be reviewed together.
The national inheritance-tax rates run from 10% to 50%. The tax base is calculated after basic, personal, spouse, financial-property, family-business, cohabiting-home and other statutory deductions, subject to an overall deduction limit.
The basic deduction is KRW 200 million. When the statutory conditions are met, a resident estate can generally use the larger of basic plus personal deductions or a KRW 500 million lump-sum deduction. A spouse deduction and other reliefs can materially change the final tax.
Gifts made within ten years before death to heirs, or within five years to other recipients, are generally added to the inheritance-tax calculation. A lifetime gift is therefore not automatically outside the eventual estate-tax model.
Inheritance tax is generally filed and paid within six months from the end of the month in which the inheritance is received. The period is generally nine months when the decedent or heir is domiciled in a foreign country. Gift-tax returns are generally due within three months after the gift month.
A grandchild or other skip-generation descendant can face a 30% inheritance-tax surcharge, rising to 40% in the statutory case involving a minor receiving more than KRW 2 billion.
Inheritance tax brackets in South Korea
| Bracket | Rate | Notes |
|---|---|---|
| Up to KRW 100,000,000 | 10% | |
| KRW 100,000,001 - 500,000,000 | 20% | Less KRW 10,000,000 |
| KRW 500,000,001 - 1,000,000,000 | 30% | Less KRW 60,000,000 |
| KRW 1,000,000,001 - 3,000,000,000 | 40% | Less KRW 160,000,000 |
| Above KRW 3,000,000,000 | 50% | Less KRW 460,000,000 |
Tax rates at a glance
- Inheritance-tax range
- 10% - 50%Progressive
- Up to KRW 100m
- 10%
- KRW 100m - 500m
- 20%
- KRW 500m - 1bn
- 30%
- KRW 1bn - 3bn
- 40%
- Above KRW 3bn
- 50%
- Basic deduction
- KRW 200m
- Lump-sum deduction
- KRW 500m
- Gift-tax range
- 10% - 50%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FamiliesExpatsProperty ownersFoundersFamily offices
Watch out for
- The 50% top rate is applied to the inheritance-tax base after statutory deductions and through the estate calculation. It is not automatically 50% of every asset inherited by every beneficiary.
- A resident decedent's foreign assets can be in scope. Offshore accounts, private-company shares, trusts, insurance, loans, lifetime gifts and valuation evidence need to be documented rather than assumed to be outside Korea.
- The KRW 500 million lump-sum deduction is not a per-heir allowance. It is an alternative to the basic and personal deduction calculation when the statutory conditions are met.
- The spouse deduction, family-business relief, financial-asset deduction and cohabiting-home relief have detailed conditions, limits and filing requirements. A spouse transfer can defer tax without eliminating the tax on the second death.
- The 2026 tax-revision bill proposes moving toward a recipient-based inheritance-tax model and changing rates and deductions. The current estate-style 10% to 50% system remains the basis for this page until legislation is enacted.
Frequently asked questions
Does South Korea have inheritance tax?
Yes. South Korea currently applies an estate-style inheritance tax from 10% to 50% after deductions. A resident decedent's worldwide property can be in scope, while a non-resident case focuses more heavily on Korean-situs property and narrower deductions.
What is the basic inheritance-tax deduction in South Korea?
The basic deduction is KRW 200 million. Where the statutory conditions are met, the estate can generally use the larger of basic plus personal deductions or a KRW 500 million lump-sum deduction, with spouse and other deductions considered separately.
When is inheritance tax due in South Korea?
The return and payment are generally due within six months from the end of the month in which the inheritance is received. The deadline is generally nine months when the decedent or heir is domiciled abroad.