Many rich Koreans go abroad to avoid property tax

VTV.vn - More and more rich Koreans are leaving the country due to high inheritance taxes, making the country rank fourth in the world in the number of millionaire migrants.

Many rich Koreans go abroad to avoid property tax

More and more wealthy South Koreans are leaving the country due to high inheritance taxes, making the country the fourth in the world for millionaire emigration, behind only Britain, China and India.

According to a report by Henley & Partners, about 2,400 high-net-worth Koreans moved abroad in 2024, six times more than three years ago. The total value of assets moved was estimated at $15.2 billion.

South Korea now ranks fourth in the world in the number of millionaires leaving the country, behind the UK (16,500), China (7,800) and India (3,500). The total value of assets leaving South Korea this year is estimated at $15.2 billion.

According to the KB Financial Group's 2024 Korea Wealth Report, 26.8% of people with assets over 1 billion won (about 730,000 USD) said they are considering emigrating for investment or settlement reasons, with high taxes, an unfavorable business environment and a lower quality of life compared to developed countries as the main reasons.

Experts say South Korea’s inheritance tax is among the highest in the world, at 60% for major shareholders – the highest among the Organization for Economic Cooperation and Development (OECD) countries, while 14 countries in this bloc do not impose inheritance tax. Professor Kang Sung Jin (Seoul National University) warned that if policies are not adjusted, the “wealth loss” trend will continue, especially among young entrepreneurs who tend to move more flexibly.

Meanwhile, the United Arab Emirates (UAE) has emerged as a global “tax haven”, attracting an estimated 9,800 millionaires by 2024 thanks to its zero income tax, inheritance tax and gift tax policies. Experts say this model is forcing many countries to reconsider their tax strategies to retain the super-rich.

Source: https://vtv.vn/nhieu-nguoi-giau-han-quoc-ra-nuoc-ngoai-ne-thue-tai-san-10025100821505429.htm