Korea’s Lee Urges Inheritance Tax Reform After Kospi Hits 6,000

South Korean President Lee Jae Myung urges to revamp inheritance tax rules as a further way to keep boosting capital markets.

• A ruling party lawmaker last year proposed an amendment to the Inheritance and Gift Tax Act, which is so-called “Stock Price Suppression Prevention Act”
  • Under the proposed law, inheritance tax would be calculated based on assets, as is done for unlisted companies, if a listed company’s price-to-book ratio falls below 0.8
  • Currently, inheritance and gift tax on listed shares is calculated based on the average stock price over a total of four months, covering two months before and two ...