April 25, 2024
The Boardroom
Super rich prefer stock transfer to real restate
[THE INVESTOR] When it comes to bequeathing a fortune, South Korea’s super rich with more than 5 billion won ($4.3 million) in assets preferred stocks over real estate or cash, according to the country’s tax agency on Jan. 31.
Between 2011 and 2015, a total of 8.3 trillion won worth of assets including real estate, stocks and cash were given to children or spouses, the National Tax Service said.
Nearly 62 percent or 5.1 trillion won was in the form of stocks. Cash inheritance accounted for 25.1 percent with 2.9 trillion won while property took up 13.1 percent with 1.9 trillion won.
It compares with the overall trend in the nation where inheritance via property made up 50 percent with 34.6 trillion won in value during the same period. Cash inheritance accounted for 26.5 percent with 18.3 trillion won. Stocks inheritance represented the smallest portion with 23.5 percent.
In the last five years, 59,140 people transferred stocks worth more than 16 trillion won to their children and spouses.
The trend of using stock transfers for inheritance is growing both in taxable and nontaxable transfers, the data showed.
Real estate transfers had taken up the largest portion overall between 2001 and 2005 at over 70 percent. Stock transfers accounted for 12.2 percent.
By Park Ga-young/The Korea Herald (gypark@heraldcorp.com)
Between 2011 and 2015, a total of 8.3 trillion won worth of assets including real estate, stocks and cash were given to children or spouses, the National Tax Service said.
Nearly 62 percent or 5.1 trillion won was in the form of stocks. Cash inheritance accounted for 25.1 percent with 2.9 trillion won while property took up 13.1 percent with 1.9 trillion won.
It compares with the overall trend in the nation where inheritance via property made up 50 percent with 34.6 trillion won in value during the same period. Cash inheritance accounted for 26.5 percent with 18.3 trillion won. Stocks inheritance represented the smallest portion with 23.5 percent.
In the last five years, 59,140 people transferred stocks worth more than 16 trillion won to their children and spouses.
The trend of using stock transfers for inheritance is growing both in taxable and nontaxable transfers, the data showed.
Real estate transfers had taken up the largest portion overall between 2001 and 2005 at over 70 percent. Stock transfers accounted for 12.2 percent.
By Park Ga-young/The Korea Herald (gypark@heraldcorp.com)
![[From the Scene] KG Mobility poised to take next leap](http://res.heraldm.com/phpwas/restmb_idxmake.php?idx=151&simg=/content/image/2024/04/24/20240424050621_0.jpg)
