A session will be held to examine the current state of South Korea's legal system regarding business succession.

A National Assembly seminar titled "Issues and Tasks in Business Succession Legislation" will take place at 2:00 PM on Monday, the 24th, at the 9th Conference Room of the National Assembly Members' Office Building. 

The seminar will focus on analyzing the problems of the current inheritance tax system and discussing practical alternatives for the succession of management rights.

Prior to the main presentations, an opening address will be delivered by Representative Kwak Kyu-taek of the Legislation and Judiciary Committee, followed by welcome remarks from Choi Jae-hyeong, former Chairman of the Board of Audit and Inspection. The subsequent session will feature two experts delivering in-depth presentations.

First, Hwang Seung-yeon, Professor Emeritus of Sociology at Kyung Hee University, will present on "How Inheritance Tax Kills Businesses," with a focus on analyzing the so-called "Anti-Stock Price Suppression Act."

Regarding the amendment to the Inheritance and Gift Tax Act proposed by Democratic Party Representative Lee So-young—known as the "Anti-Stock Price Suppression Act"—Professor Hwang asserted, "This is an attempt to further increase inheritance tax rates in South Korea, a country that already has the world's highest inheritance tax rate at 60%." He added, "It is a socialist idea that denies property rights and the market economy guaranteed by the Constitution, as it rejects market-determined stock prices in favor of imposing inheritance tax based on government-set valuations." 

The "Anti-Stock Price Suppression Act" is a bill that would force approximately 47.5% of all listed companies in South Korea—those with a Price-to-Book Ratio (PBR) of less than 0.8—to bear an even higher inheritance tax burden than the existing world-leading 50-60% rate.

According to Professor Hwang, this bill constitutes a serious infringement on property rights, as it would uniformly calculate the stock value of all companies with a PBR below 0.8 as 0.8 for inheritance tax purposes, regardless of the company's industry or capital characteristics.

Furthermore, citing international examples, he emphasized, "We must learn from the fact that Sweden, which once had a 70% inheritance tax rate, experienced remarkable economic growth and increased tax revenue after abolishing the inheritance tax in 2004 under the leadership of the Social Democratic Party, following a long period of economic stagnation."

He also pointed to Venezuela's tax policy as a counter-example. He argued, "When we look squarely at the collapse of Venezuela, which attempted the nationalization of companies through high taxes such as inheritance tax, the 'Anti-Stock Price Suppression Act,' which seeks to further raise the world's highest inheritance tax rate, must be withdrawn."

Professor Hwang predicts that if this bill is implemented, South Korea will become a society where there is no reason to conduct business, leading to the gradual disappearance of companies. This is because, in a modern industrial society, a society without companies cannot survive, and a welfare state without companies is an illusion.

He further suggests that since South Korea already has the world's highest inheritance tax rate, it would be correct to abolish the inheritance tax in line with global trends; if abolition is difficult, he proposes introducing a "capital gains tax." This topic will be discussed in detail during the event.

In the second session, Choi Joon-sun, Professor Emeritus at Sungkyunkwan University Law School, will focus his presentation on "Methods for Management Succession Using Family Foundations."

In the subsequent plenary discussion, moderator Jin-kwon Hyun, Representative of the Liberty and Decentralization Forum (former Director of the National Assembly Library), will be joined by panelists Kim Seung-wook, Professor Emeritus of Economics at Chung-Ang University; Hong Ki-yong, Professor Emeritus of Business Administration at Incheon National University (former President of the Korean Accounting Association); and Kim Woo-cheol, Professor of Taxation at the University of Seoul (47th President of the Korean Association of Public Finance), for a vigorous debate.

The seminar is co-hosted by the office of People Power Party Representative Kwak Kyu-taek and the organization "People Preparing for Tomorrow," and organized by the Korea Corporate Law Institute.

◆ Event Overview

Event Title: National Assembly Seminar: "Issues and Tasks in Business Succession Legislation"

Date & Time: Monday, August 24, 2026, at 2:00 PM

Venue: 9th Conference Room, National Assembly Members' Office Building

Hosts: Representative Kwak Kyu-taek (People Power Party), People Preparing for Tomorrow

Organizer: Korea Corporate Law Institute