South Korea's government and ruling party are considering a move to lower the extra-high rate levied on inheritance tax for top shareholders of big companies, a ruling party official said Monday.
South Korea's top inheritance tax is set at 50 percent, but it could go up to as high as 65 percent if the rate is increased in cases that involve the largest shareholders.
The ruling Democratic Party (DP) and the government have been in discussions to lower the extra-high rate and they are expected to announce details next week, a source said.
If the extra-high rate is lowered, it would be the first time in 26 years that the government amended the rate for the very weathy.
South Korea's business lobby groups have urged the government to lower the extra-high rate of inheritance tax, describing it as an excessive burden. (Yonhap)