Regional small and midsize businesses are raising concerns over proposed changes to Korea’s family-business inheritance deduction as the 2026 tax revision moves toward National Assembly review. Maeil Shinmun reported that the proposal would generally lengthen the required pre-inheritance management period from 10 years to 30 years, while tougher post-transfer obligations could keep successors tied to the inherited business for longer.
Local companies argue that the combination of longer eligibility periods and limits on changing business lines could make it harder to persuade the next generation to take over firms or to diversify when an existing business weakens. The government changes are intended to tighten access to a generous tax benefit and curb abuse, while business groups are asking lawmakers to distinguish between avoidance schemes and ordinary succession at operating SMEs.