"There is a sequence to the downfall of countries like Argentina, Greece, and Venezuela. When a political party that promises populist policies focused on massive welfare expansion takes power, it first drastically increases taxes to fund those welfare budgets. Companies lose their competitiveness due to the tax burden and shut down. Businesses that cannot withstand the taxes relocate overseas. Unemployment rises, and top talent leaves the country in search of jobs abroad. The number of people relying on welfare benefits grows."

Hwang Seung-yeon, professor emeritus at Kyung Hee University, diagnoses in his new book, 'Inheritance Tax and the Fate of South Korea,' that Korea now stands at a crossroads of rise and fall. The author notes, "If you take money from one rich person to distribute to five poor people, you lose one vote but gain five; however, the countries that have done this have almost all collapsed."

In particular, he criticizes the current administration for viewing corporate inheritance as unearned income, the mere passing down of wealth, or a cause of wealth polarization—thereby increasing social costs—even though the inheritance of a business represents the continuation of its history, tradition, and employment.

The author argues that if South Korea maintains or increases its world-leading inheritance tax rates under the pretext of resolving polarization, there will be no future for businesses in the country, and consequently, no jobs for the next generation.

He asserts that the inheritance tax system may not be making our society equal, fair, and just, but could instead be a curse that leads to its collapse.

"Even Sweden, once a model welfare state, only changed its course after paying the price for a harsh experiment. Many countries began similar experiments, only to later reverse direction. Unfortunately, South Korea is a country that still clings to this experiment, believing it to be viable. If we cannot learn from so many failures, the people will have no choice but to bear the resulting pain and frustration themselves. As the saying goes, 'Escaping the left is a matter of intelligence.'"

We stand at a fork in the road: the path taken by Sweden or the path taken by Venezuela. Which path will we choose? Inheritance tax policy will determine the fate of South Korea.

Professor Hwang Seung-yeon