South Korea’s wealthy are more concerned about inheritance issues than generating profit from financial products in terms of asset management, data compiled by Samsung Securities showed Monday.
The data was based on 1,630 cases of regular consulting with the firm’s clients who have over 3 billion won ($2.6 million) deposited in the firm for investment.
Of the clients, 30.2 percent acknowledged that inheritance issues were their priority concern, while 30 percent chose collecting profits from products.
About 19.2 percent said they were most interested in minimizing transfer tax, which is levied on the transaction of securities or real estate.
About 14 percent chose real estate investment, and 2.2 percent said they were most concerned with the capital management of their businesses.
The interest in inheritance tax apparently stems from worries related to Korea’s high death tax rate, amid efforts to manage assets in a period of an economic slowdown
Korea has one of the highest inheritance tax rates among member states of the Organization for Economic Cooperation and Development -- 50 percent on anyone who inherits more than 3 billion won. The average tax rate among OECD members stands at 26.2 percent.
Meanwhile, the firm said more than 80 percent of the clients who received wealth inheritance consulting requested additional meetings for actual arrangements.
“Nationwide consulting has unveiled the massive interest in inheritance issues related to business succession among the South Korean wealthy,” said Yoo Sung-won, an analyst at Samsung’s Family Business and Wealth Succession Center.
“The firm’s round-the-clock tax service called My Tax Manager received a great deal of feedback from clients, as it helps them share sensitive information related to inheritance and family businesses through long-term relations,” he added.
To provide solutions for local investors concerned about inheritance issues, Samsung will host a family business and wealth succession conference at the Samsung Finance Campus in Seoul on Wednesday.
By Jung Min-kyung (firstname.lastname@example.org)