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President Lee Jae-myung speaks during a Cabinet meeting held at the Government Complex Sejong on August 11. / Courtesy of Yonhap News

President Lee Jae-myung countered criticism regarding the overhaul of the family business inheritance tax deduction on August 13, stating, "Reducing improper tax cuts is the path toward tax normalization." As certain sectors raised concerns over the government's tax reform bill, which drastically scaled back eligible industries for the deduction, President Lee reaffirmed his position that excessive tax cuts inconsistent with the policy's original intent must be rectified.

Writing on his X (formerly Twitter) account that morning, President Lee referenced industries such as taxis, buses, supermarkets, hospitals, and pharmacies, asking, "Is it fair to continue granting tens of billions in inheritance tax cuts to these sectors?"

President Lee also shared a news report detailing pushback from business operators in industries excluded from the family business inheritance tax deduction under the government's tax reform bill.

In its recent tax proposal, the government tightened eligibility requirements for the family business inheritance tax deduction, reducing the number of qualifying industries from 1,205 to 727.

The family business inheritance deduction was designed to prevent business disruptions caused by heavy inheritance tax burdens.

However, controversies over potential abuse persisted, as sectors far removed from the policy's original purpose—such as bakery cafes and parking lot operations—continued to receive benefits.

President Lee previously directed a comprehensive overhaul of the system during a Cabinet meeting in April, pointing out the inclusion of parking lot operations among eligible industries for the deduction.

                                                                                                        Park Young-hoon