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DP signals shift toward PPP's position on abolishing death duties for surviving spouses

Published: 07 Mar. 2025, 16:26

MICHAEL LEE
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Democratic Party leader Lee Jae-myung speaks at a meeting of the party's Supreme Council at the National Assembly in Yeouido, western Seoul, on March 7. [NEWS1]

Liberal Democratic Party (DP) leader Lee Jae-myung signaled agreement on Friday with a proposal by the conservative People Power Party (PPP) to abolish death duties for surviving spouses.

The rare moment of bipartisan consensus comes amid increasing competition between the two major parties, both of which are seeking to make their mark on contentious issues ahead of a possible early presidential election.

Earlier Friday, PPP floor leader Rep. Kweon Seong-dong revealed his party's intention to introduce a bill that would scrap the inheritance tax for surviving spouses.

Kweon argued that it is “unfair” for spouses to bear such a burden, especially when divorced individuals are not required to pay taxes upon the division of their assets.

Lee responded to Kweon's remarks by acknowledging the merits of the proposal. “There is some validity to [Kweon's] argument,” Lee said during a meeting of the DP's Supreme Council on Friday.

The DP leader also voiced support for the PPP's suggestion to increase the maximum deductible amount for inheritance tax.

Currently set at 500 million won ($342,000), the cap on deductions has remained unchanged since 1997.

Despite these areas of agreement, significant differences remain between the two parties regarding broader inheritance tax reforms.

The DP currently appears to favor a comprehensive exemption for surviving spouses, as well as a higher deduction of 800 million won for heirs. In contrast, the PPP has called for a reduction in inheritance tax rates across the board.

Lee stressed the need for both parties to focus on raising deductions to prevent people from being forced to sell their homes to cover inheritance taxes upon the death of a parent or spouse.

“We should ensure that people are not put in a position where they must sell their house to pay inheritance tax,” he said.

However, Lee also urged the PPP to avoid “attaching conditions, like lowering taxes for the super-rich,” to inheritance tax reforms.

“The PPP has a bad habit of blocking legislative progress by combining propositions that enjoy bipartisan support with ideas that lack consensus,” Lee argued.

BY MICHAEL LEE [[email protected]]