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Korean Inheritance Tax Calculator: How to Estimate Your Liability
In Brief
Korean inheritance tax uses a progressive rate from 10% to 50%. For a US-domiciled non-resident decedent, the deduction is capped at ₩200M, leaving most of the estate exposed. Use our free calculator for a 30-second estimate, then read on for how the math actually works.
Step 1 — Decide the Decedent's Korean Residency
This single fact changes the tax bill by 2–3×. Korean tax law (not citizenship) defines a resident as someone who has a Korean address or stays in Korea 183+ days per year. A long-time US green card holder who keeps a Korean passport is still a non-resident for inheritance tax purposes.
| Decedent | Lump-sum deduction | Spousal deduction |
|---|---|---|
| Korean resident | ₩500M | Up to ₩3B |
| Korean non-resident | None | None |
Step 2 — Total the Korean Assets at Date of Death
Add up: real estate (market value within 6 months before/after death), bank deposits, listed securities, private business interests, life insurance proceeds, and vehicles. Foreign assets are included only if the decedent was a Korean resident.
Step 3 — Subtract Deductions
- Basic deduction: ₩200M (always available, even for non-residents)
- Lump-sum deduction: ₩500M (residents only)
- Spousal deduction: up to ₩3B (residents only) — but at least ₩500M if the spouse inherits
- Funeral expenses: up to ₩15M (only if funeral occurs in Korea — i.e., residents)
Step 4 — Apply the Progressive Rate
| Taxable base (KRW) | Rate | Progressive deduction |
|---|---|---|
| Up to ₩100M | 10% | — |
| ₩100M – ₩500M | 20% | ₩10M |
| ₩500M – ₩1B | 30% | ₩60M |
| ₩1B – ₩3B | 40% | ₩160M |
| Over ₩3B | 50% | ₩460M |
Formula: tax = (taxable base × rate) − progressive deduction.
Worked Example — Non-Resident, ₩2.5B Korean Estate
- Gross estate: ₩2,500,000,000
- Basic deduction: −₩200,000,000 (no lump-sum, no spousal — non-resident)
- Taxable base: ₩2,300,000,000
- Tax: ₩2.3B × 40% − ₩160M = ₩760M (33% effective)
For comparison, the same estate as a resident with spouse + 2 children: after lump-sum + spousal deduction, tax falls to roughly ₩314M (12.6% effective). See the non-resident penalty guide.
Step 5 — Don't Forget the US Side
If the decedent was a US person (citizen or green card holder), Form 706 may also apply on worldwide estate over $15M (2026). Korean tax paid is creditable against US estate tax via Form 706-CE (no Korea-US estate tax treaty, but unilateral relief under IRC §2014).
General information only — not tax or legal advice. The Korean side is handled directly by a Korean CPA & Tax Accountant; US-side matters (Form 706, 706-CE, PFIC, FBAR) are referred to partner US attorneys and CPAs.