Tag: Korean Inheritance Tax Law

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Cross-border inheritance involving Korean assets—whether the decedent or the heir is a non-resident—often leads to unexpected Korean inheritance tax obligations.  Without proper planning, foreign heirs may face administrative delays, tax audits, and significant penalties.

As Korean attorneys who regularly advise foreign families on cross-border estate matters, we have seen many cases where a lack of understanding of Korea’s inheritance tax rules resulted in avoidable risks and financial losses.

In this article, we explain who is liable to pay Korean inheritance tax, which assets are subject to tax, how the tax is calculated, and how to plan for payment—including options such as in-kind contribution or installment plans.  Whether you are a foreign heir, a family representative, or a professional advisor assisting with Korean estate matters, this guide will help you navigate Korea’s inheritance tax system with confidence and clarity.

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Shareholder agreements are essential tools for defining the rights and obligations of shareholders when multiple parties collaborate on a business or project.  These agreements are commonly used in joint ventures and M&A transactions and are increasingly seen in investment contracts between financial investors and Korean startups.  

In the entertainment industry, where collaboration between large labels and creative talents often forms the foundation of new ventures, shareholder agreements play a significant role in corporate governance.  A recent dispute over ADOR, the label behind the K-Pop girl group New Jeans, highlights the legal implications of shareholder agreements, particularly voting rights agreements, in Korean joint ventures.

In the ADOR case, the Seoul Central District Court upheld the validity of the director appointment and voting restriction clauses outlined in the shareholder agreement and subsequently issued an injunction preventing the majority shareholder from the exercise of voting rights in an attempt to oust ADOR’s CEO.  

This ruling serves as a key example of how shareholder agreements and voting agreements function in joint venture management disputes. It offers valuable insights not only for the entertainment industry but also for foreign companies engaged in joint ventures in Korea across various sectors. (more…)

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Korean Inheritance tax can be a complex issue, particularly for those living abroad. An important ruling by the Korean Supreme Court (Supreme Court, 1994. 11. 11. 94nu5359 Decision) sheds light on whether inheritors residing outside South Korea must pay inheritance tax in Korea when they just inherited foreign assets from a non-resident deceased. This post aims to clarify the key points of the ruling and its implications for foreign heirs.

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