South Korea Tightens Inheritance Tax Rules, Raising Minimum Valuation 30% Starting April 2027

According to South Korea's Ministry of Economy and Finance, the government announced inheritance and gift tax reforms on August 3 that fundamentally change valuation methods for listed company shares. Starting April 1, 2027, companies with price-to-book ratios in the bottom 25% of KOSPI or bottom 10% of KOSDAQ over the past six years will face extended evaluation periods of up to 13 half-years, with revalued shares set at the higher of 130% of the original valuation or long-term average price, raising the taxable standard by at least 30%. Separately, the family business succession deduction limit increased from 60 billion to 100 billion Korean won, but eligibility requirements were tightened.
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