Concerns Raised Over Minor CEOs in South Korea Amid Inheritance Tax Loophole Fears

Government data released on Monday revealed that over the past five years, 20 minors in South Korea have earned more than $74,119 annually as CEOs, including one child under the age of five. These findings have sparked concerns about the potential exploitation of inheritance tax loopholes.

According to statistics from the National Health Insurance Service, submitted to Rep. Jin Sun-mee of the Democratic Party of Korea, as of August 2024, there are 360 business owners under the age of 19 registered within the health insurance system, which also accounts for joint representatives.

A breakdown of income data shows that 20 minors earned over $74k a year, 41 minors made between $37k and $74k, and 299 minors earned less than $37k annually.

Among the high earners, 12 individuals were between the ages of 11 and 15, five were aged 16 to 17, two were between six and 10, and one was under the age of five.

Geographically, Seoul accounted for the highest number of minor-owned businesses, with 231, followed by Gyeonggi Province with 61, Incheon with 22, Busan with 18, and North Jeolla Province with nine. Several regions, including Gwangju, Ulsan, North Chungcheong Province, South Jeolla Province, North Gyeongsang Province, and Jeju, reported no minor CEOs.

Rep. Jin Sun-mee emphasized the need for stricter regulations to prevent minors from being used as a means to evade inheritance tax. She pointed out that the issue goes beyond a handful of cases, suggesting it reflects broader societal income inequality. She urged for stronger oversight to address the potential for tax evasion through the registration of businesses in the names of minors.

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