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 ruling remains the governing precedent on this issue and continues to be applied by Korean courts and tax authorities today. This post aims to clarify the key points of the ruling and its implications for foreign heirs.
Tag: Korean Inheritance Tax
Korean Inheritance Lawyer Explains: What Foreigners Need to Know About Korean Inheritance Law (2026)
Losing a family member is difficult enough. When that family member leaves behind assets in Korea — and you are unfamiliar with Korean law, whether you live abroad or are a foreigner residing in Korea — the situation quickly becomes legally complex.
Korean co-heirs may contact you promptly, urging you to sign documents, making representations about what the estate contains, or proposing how the inheritance should be divided. Without a clear understanding of your rights under Korean law, you are at a serious disadvantage.
Korean inheritance law, Part V of the Civil Act, is detailed and, for foreign heirs, often unfamiliar. Your share of the estate, your right to challenge a will, your ability to protect against an unfair distribution — all of these depend on rules that may be very different from those in your home country. And in many cross-border cases, it is not even obvious from the outset whether Korean law applies at all.
In this article, our Korean inheritance lawyer explains the core principles of Korean inheritance law as they apply to foreign heirs — from who qualifies as an heir and how the estate is divided, to the protections available to you and the steps you can take if your rights are being overlooked.
(more…)Korean Inheritance Tax for Foreign Heirs: Rates, Deadlines & How to File (2026)
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.
(more…)Korean Shareholder Agreements and Voting Agreements: Key Lessons from the ADOR-New Jeans Dispute
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…)
Do I Have to Make a Tax Report with the Korean Authority Regarding a U.S. House Gifted by Korean Parent – International Gifts and Korean Tax Laws
When receiving gifts of money or other property, the party should check any tax issues involved. When the gifts cross the national borders or involve foreign parties, it becomes more complicated. It could entail an additional filing with a government of a foreign country where the foreign party resides. Today, we are going to introduce what report and tax liability the parties should take care of and under what condition, when a U.S. resident receives a U.S located house as a gift from his Korean resident parent.
Report to the Bank of Korea
According to Article 7-46 and 7-44 of Foreign Exchange Transaction Regulation(FETR), when a resident of Korea gifts a real property, which is even located abroad, to any non-resident, the Korean resident(devisor) should report the transaction in advance to the Bank of Korea.
The nationality of the parties doesn’t matter here. Only the place of residence does matter. The Korean Tax authority (National Tax Service) has an internal rule to apply to decide who is a resident and who is not.
Choice of Laws Is Critical When It Comes to an International Inheritance
Recently our office has represented US clients whose German father had passed away in South Korea without any will. At the time of passing, the deceased was domiciled in Korea and remarried to a Korean wife. The Korean wife contacted the US family out of blue to discuss how to distribute the estate in Korea. The US clients were the children from the deceased’s previous marriage in the US. They contacted our office for the legal advice and representation.
One of the issues was which country’s inheritance law shall be applicable, i.e. the Korean inheritance law or the German inheritance law. This was because the deceased had a foreign nationality, while his estate and residence at the time of passing were all in Korea. Practically, when the Korean law is applied, the US children shall be entitled to the larger shares than those granted under the German law.
In Korea, Article 49 of the Korean Act on Private International Law(“APIL”) is the starting point to determine which country’s law shall be the governing law in case of an international inheritance case. It provides that (more…)