High inheritance tax acts as safety valve in Korean society. It stops wealth and income inequality becoming too out of control.
Unlike some portrayal by Reddit as a cyberpunk dystopia, Korea maintains relatively low level of economic inequality which has been constantly decreasing since 2008 crisis. This was thanks to not only economic democratization movement of 2010s and the post-candlelight revolution anti-Chaebol reforms, but also the constant effect of high inheritance tax. It acts as a check against chaebol concentration of wealth as the government takes half of their wealth when every generation of that family business dies which can be reinvested into publicly funded infrastructure to support businesses.
The real reason Korea is losing millionaires is mandatory military service. The rich kids don’t want to serve the nation for a pay that is lower than minimum wage and they gain foreign passport for draft dodging. But they never say that reason aloud because if the government finds out, they will be put in a blacklist of eternally exiled from Korea which cut them out of their main source of income.
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High inheritance tax acts as safety valve in Korean society. It stops wealth and income inequality becoming too out of control.
Unlike some portrayal by Reddit as a cyberpunk dystopia, Korea maintains relatively low level of economic inequality which has been constantly decreasing since 2008 crisis. This was thanks to not only economic democratization movement of 2010s and the post-candlelight revolution anti-Chaebol reforms, but also the constant effect of high inheritance tax. It acts as a check against chaebol concentration of wealth as the government takes half of their wealth when every generation of that family business dies which can be reinvested into publicly funded infrastructure to support businesses.
The real reason Korea is losing millionaires is mandatory military service. The rich kids don’t want to serve the nation for a pay that is lower than minimum wage and they gain foreign passport for draft dodging. But they never say that reason aloud because if the government finds out, they will be put in a blacklist of eternally exiled from Korea which cut them out of their main source of income.