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As wealthy Koreans flock overseas in search of greener pastures, experts blame inheritence tax

Published: 07 Oct. 2025, 13:01 Updated: 08 Oct. 2025, 15:25

LEE JAE-LIM
[email protected]

Henley & Partners projects that 9,800 millionaires will move to the United Arab Emirates (UAE) this year, making it the top country for net inflows. The photo shows the area near the Marina in Dubai, the UAE’s largest city. [AFP/YONHAP]

The number of wealthy Koreans emigrating overseas has surged sixfold over the past three years, reaching an estimated 2,400 individuals this year. Korea is projected to record a net outflow of 2,400 millionaires in 2024, ranking fourth globally after Britain with 16,500, China with 7,800 and India with 3,500, according to British investment migration consultancy Henley & Partners.

The exodus of affluent Koreans is expected to result in an outflow of approximately $15.2 billion in assets. Henley & Partners defines such “wealth migration” as cases where individuals with more than $1 million in investable wealth relocate and reside in another country for at least six months.

What’s alarming is the rapid acceleration of this trend — from just 400 wealthy emigrants three years ago to 2,400 this year, a sixfold increase.

According to the 2024 Korea Wealth Report, published by KB Financial Group's management research institute, 26.8 percent of respondents with assets exceeding 1 billion won ($730,000) reported considering moving abroad for investment or immigration purposes.

The top reasons cited were lower taxes, a more favorable business environment and better living conditions.

Experts note that Korea’s inheritance tax rate is among the highest in the world, reaching 60 percent when applied to major shareholders — the highest rate among OECD countries, 14 of which impose no inheritance tax at all.

Tax pressure driving wealth outflows from Britain
Britain, which this year overtook China as the world’s top country for millionaire outflows, is facing a similar situation due to changes in tax policy. An estimated 16,500 millionaires are expected to leave Britain in 2024, compared with a decline of 7,800 in China.

Experts attribute this to the abolition of the “non-domiciled resident” status, which previously allowed foreign residents to avoid taxes on overseas income and capital gains as long as those funds were not remitted to the country of residence. The system was scrapped in April 2024, prompting many wealthy foreigners to relocate.

According to The Wall Street Journal (WSJ), Egyptian billionaire and Aston Villa co-owner Nassef Sawiris has moved his residency from London to Italy, while German billionaire Christian Angermayer relocated to Switzerland last year.

"The government was maybe overconfident that the international wealthy loved London so much...that they wouldn't go," noted Charlie Sosna, a lawyer at British law firm Mishcon de Reya, told the WSJ.

UAE emerges as a tax haven for the global rich
In stark contrast, the United Arab Emirates (UAE) continues to attract the world’s wealthy. Henley & Partners estimates that 9,800 millionaires will make the UAE their new home this year — the largest net inflow globally — followed by the United States with 7,500, Italy with 3,600, Switzerland with 3,000 and Saudi Arabia with 2,400.

The UAE’s appeal lies in its zero personal income tax, no capital gains tax and no inheritance or gift taxes, earning it a reputation as a tax haven.
Henley & Partners noted in its report:

“Zero income tax, world-class infrastructure, political stability and a regulatory framework that treats capital as a partner rather than prey have created a compelling proposition.”

The surge of high-net-worth individuals has also fueled a boom in family offices managing private wealth in the UAE. According to Matias Gonzalez, head of investments at British bank Barclays, “The UAE is a key strategic market for us, not only because of the wealth creation from local Emiratis, but also because of the massive migration that has come into the country, which has been extremely successful.”

Professor Kang Sung-jin of Korea University’s department of economics warned that this trend could worsen if Korea’s tax structure remains unchanged.

“Unlike in the past, younger wealthy Koreans are far more mobile and willing to relocate overseas,” he said. “Unless South Korea lowers its world-high inheritance and gift tax rates, the number of entrepreneurs and wealthy individuals leaving the country to avoid taxes will inevitably continue to grow.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY YEOM JI-HYUN [[email protected]]