President Lee Condemns Chamber of Commerce Report on Wealthy Korean Exodus as “Fake News”
Seoul, South Korea – – President Lee Jae-myung has publicly and sharply criticized a recent report from the Korea Chamber of Commerce and Industry (KCCI) claiming a significant increase in wealthy Koreans leaving the country, labeling the findings “deliberate fake news.” The president’s rebuke, delivered via his X (formerly Twitter) account on , raises questions about the accuracy of data used to fuel a debate over South Korea’s inheritance tax policies.
The KCCI report, released on , stated that an estimated 2,400 high-net-worth individuals exited South Korea last year, a doubling of the 1,200 recorded in 2024. The chamber identified the country’s inheritance tax rate – potentially reaching up to 60 percent – as a primary driver of this outflow, placing South Korea as the fourth-largest country globally experiencing such a loss of wealthy citizens, following the United Kingdom, China, and India.
President Lee directly challenged the credibility of the KCCI’s analysis, stating, “I can’t believe that KCCI, an official organization established by law, would publicly engage in such conduct.” He shared a media column questioning the methodology of the survey, which was conducted by a foreign immigration consulting firm, Henley & Partners.
The president’s comments were echoed by Deputy Prime Minister Koo, who also dismissed the 2,400 figure as “fake news.” According to reports, the government is prepared to hold the KCCI accountable for disseminating what it considers to be misleading information.
The KCCI’s initial report sparked widespread media coverage, with numerous outlets reporting on the potential impact of high inheritance taxes on corporate investment, stock prices, and the transfer of controlling stakes in family-owned businesses. Kang Seog-gu, executive director of the KCCI’s research division, had argued that “Heavy inheritance taxes have weakened corporate investment, put downward pressure on stock prices and forced the sale of controlling stakes.” The KCCI had also urged the government to allow heirs of conglomerates to pay inheritance taxes in installments over 20 years, a provision currently limited to heirs of small- and medium-sized businesses.
However, the column cited by President Lee and the subsequent government response cast doubt on the validity of the Henley & Partners data. The column alleges flaws in the survey’s methodology, suggesting the findings are unreliable. The president warned that spreading “fake news to pursue private interests and attack government policies deserves condemnation,” and vowed to establish measures to prevent similar incidents in the future.
The controversy comes as the National Assembly has suspended discussions on legislation aimed at easing South Korea’s inheritance tax rate, which is among the highest in the world. The KCCI had forecast that inheritance tax revenue could reach 35.8 trillion won (approximately $25 billion USD) by 2072, a significant increase from the 9.6 trillion won collected in 2024, driven by an aging population and delays in legal revisions.
The debate over inheritance taxes highlights the complex challenges facing South Korea as it seeks to balance revenue generation with the need to retain its wealthiest citizens and encourage continued investment in the national economy. The KCCI’s report and the government’s forceful response underscore the sensitivity of this issue and the potential for conflicting narratives to emerge.
