Inheritance tax in South Korea 2026

Korea's estate tax bites hard: 10% to 50% (above KRW 3 billion) on the whole estate, with most families relying on the standard KRW 500 million allowance plus the spouse allowance (minimum KRW 500 million, up to KRW 3 billion of what the spouse actually inherits).

Gifts use the same 10–50% scale with gifts from one donor pooled over 10 years — a spouse can receive KRW 600 million tax-free each decade, lineal children just KRW 50 million.

At a glance

top rate: 50% above KRW 3 billion
entry band: Standard allowance KRW 500 million (plus spouse allowance)
tax year basis: Per death or gift; gifts from one donor pooled over 10 years
filing deadline: Inheritance returns within 6 months (self-assessed regime)
residency basis: Worldwide estates of Korean-resident decedents; Korean-situated assets otherwise
regime flag: Pre-death disposals (KRW 200m/500m within 1–2 years) pulled back into the estate

Rates

Inheritance and gift tax (2026)

Taxable amount (KRW million)	Marginal rate	Note
Up to 100	10%
100 – 500	20%
500 – 1,000	30%
1,000 – 3,000	40%
Over 3,000	50%	Surcharge possible for controlling-shareholder stock transfers

Marginal rates apply within each band.

Gift allowances (per donor, per 10 years)

Allowance	Relationship	Note
KRW 600 million	From a spouse
KRW 50 million	From lineal ascendants (KRW 20 million to minors)
KRW 50 million	From lineal descendants
KRW 10 million	From other relatives

Thresholds & allowances

Inheritance allowancesKRW 500m standard (or itemized)
General KRW 200m + per-descendant KRW 30m alternatives; spouse allowance from KRW 500m to 3 billion of amounts actually inherited
Pre-death clawback1 – 2 years
Unexplained disposals over KRW 200m (1 year) / 500m (2 years) per asset type are added back to the estate
Foreign tax creditsProportional
Foreign death and gift taxes credit against the Korean bill

Residency

Residency trigger

Resident decedents' worldwide property is taxed; a non-resident's estate is caught on Korean-located assets only — and gift tax reaches resident donors' offshore gifts to non-residents unless foreign-taxed (related parties are taxed regardless, with credit).

Non-resident treatment

Non-resident donees pay Korean gift tax on Korean assets, and even on foreign assets that are Korea-rich company shares gifted by residents.

Notes

Reform is brewing: a shift from estate-basis to inheritance-acquisition-basis taxation has been legislated for later years — the 10–50% scale survived 2024's rate-cut attempt.
Virtual assets are within the inheritance and gift net despite the income-tax deferral.
Because gifts from one donor are pooled over 10 years, serial giving barely helps — planning windows are generational.
Property and comprehensive real estate holding taxes continue annually on inherited real estate.

FAQ

How much can heirs inherit tax-free in South Korea?

Typically KRW 500 million via the standard allowance, plus the spouse allowance of at least KRW 500 million (up to KRW 3 billion actually inherited) — beyond that, 10–50% marginal rates apply.

How are gifts taxed?

On the same 10–50% scale after 10-year allowances: KRW 600 million from a spouse, KRW 50 million from parents (20 million for minors), KRW 10 million from other relatives.

Figures: tax year 2026, compiled from public sources. Not tax advice.

See inheritance tax in other countries

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