South KoreaWhat is the inheritance tax exemption limit?
In South Korea, the inheritance tax exemption limit is ₩500 million per heir for direct descendants and ₩100 million for other heirs, with additional exemptions for small estates and certain assets.
What the Law Says
South Korea’s Inheritance Tax Act sets statutory exemption amounts depending on the heir’s relationship to the deceased and estate size. These exemptions reduce the taxable base before applying progressive tax rates.
The basic exemption for inheritance tax is ₩500 million per heir if the heir is a direct descendant (e.g., child or grandchild) or spouse of the deceased.
For other heirs—including siblings, parents (if not surviving spouse), or unrelated beneficiaries—the exemption is ₩100 million per heir.
An additional small-estate exemption applies: if the total value of the inherited property is ₩20 million or less, no inheritance tax is imposed—even if the heir does not qualify for the full personal exemption.
Taxpayers must file a return within 6 months of the date of death; failure to file on time may forfeit eligibility for certain exemptions and trigger penalties.
Statutory TextA person who inherits property from a deceased person shall be exempted from inheritance tax up to five hundred million won per heir if the heir is a spouse or lineal descendant of the deceased.
— Inheritance Tax and Gift Tax Act, s. 16 — Exemption Amount
Statutory TextIn the case of an heir other than those referred to in Paragraph 1, the exemption amount shall be one hundred million won per heir.
— Inheritance Tax and Gift Tax Act, s. 16(2) — Exemption Amount
Statutory TextWhere the total value of inherited property is twenty million won or less, no inheritance tax shall be imposed.
— Inheritance Tax and Gift Tax Act, s. 17 — Small Estate Exemption
What to Do
Determine your relationship to the deceased to identify your applicable exemption (₩500M for spouses/direct descendants; ₩100M for others).
Calculate the total fair market value of all inherited property as of the date of death.
Apply the appropriate exemption and subtract it from the gross inheritance to determine the taxable amount.
File Form 401 (Inheritance Tax Return) with the National Tax Service within 6 months of the decedent’s death.
Submit supporting documents, including family relationship certificates, asset appraisals, and proof of debts or funeral expenses (which may further reduce taxable value).
Sources
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US FederalNot legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.