How is inheritance tax (Sangsokse) charged in South Korea?

South Korea levies inheritance tax on the whole estate before it is divided, at progressive rates rising from 10% on the first 100 million won to 50% on amounts above 3 billion won. The taxable base is the estate value after debts, funeral costs and the available deductions, so smaller estates often pay little or nothing once the deductions are applied.

What is the spouse deduction worth?

When a surviving spouse inherits, a spouse deduction applies of at least 500 million won, and up to the lower of the spouse's statutory share of the estate or 3 billion won. This is the single largest relief in the system and means estates passing mainly to a spouse can be substantially or fully sheltered.

What is the lump-sum deduction?

Heirs may take a lump-sum deduction of 500 million won instead of itemising the basic deduction (200 million won) plus other personal deductions for children and dependants. Most families take the lump sum because it is larger; the tool lets you compare both so you use whichever is bigger.

How do the progressive rates work?

After deductions, the taxable estate is taxed in bands: 10% up to 100 million won, 20% to 500 million, 30% to 1 billion, 40% to 3 billion, and 50% above that. The rate applies to the slice in each band, not the whole estate, so the marginal top rate only hits the portion above 3 billion won.

Is this an exact figure?

No — it is an estimate. Real assessments add or remove items such as gift add-backs within ten years, financial-asset deductions, business-succession reliefs and filing credits, and the spouse deduction depends on the actual division of the estate. Use this as a planning guide and confirm with a Korean tax adviser.

South Korea Inheritance Tax Calculator

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This South Korea inheritance tax calculator estimates the duty (Sangsokse) payable on an estate after the main deductions — the lump-sum or basic deduction and the powerful spouse deduction — using the progressive 10–50% rate schedule that applies to the whole estate before division.

How it works

The taxable base is the estate value less the deductions you qualify for:

deductions   = max(lump-sum 500M, basic 200M) + spouse deduction (if spouse inherits)
taxable base = max(0, estate value − deductions)

The spouse deduction is at least 500 million won and up to 3 billion won. The taxable base is then taxed band by band:

10%  up to ₩100,000,000
20%  ₩100M – ₩500M
30%  ₩500M – ₩1,000,000,000
40%  ₩1B – ₩3,000,000,000
50%  above ₩3,000,000,000

Because the rate applies to each slice, only the portion above 3 billion won is taxed at the top 50% rate. The result is the estimated inheritance tax and the net amount passing to heirs.

Example

An estate of 2 billion won passing to a spouse and children might take the 500 million won lump-sum deduction plus a 500 million won spouse deduction, leaving a 1 billion won taxable base. Taxed across the 10–30% bands, the bill is well below a flat 30% of the whole estate — the deductions and banding both pull it down.

Notes

This is an estimate. Gifts made within ten years are added back, and reliefs for financial assets, family business succession and prompt filing can change the figure materially. The spouse deduction depends on the actual division. Always confirm with a Korean tax professional.