SEJONG, Sept. 25 (Korea Bizwire) — The value of wealth gifted to children in South Korea exceeded 1 trillion won (US$836 million) in 2017, underscoring a rising trend of donating wealth to youngsters, data showed Wednesday.
According to the data compiled by the National Tax Service, the value of money and property gifted to minors stood at 1.02 trillion won in 2017 — the first time the annual value of wealth gifted to children has surpassed 1 trillion won.
Between 2013 and 2017, the value of wealth transfers from parents or grandparents to children amounted to 3.5 trillion won, according to the data.
The data showed a growing number of children are receiving wealth from their parents and grandparents at a younger age, apparently so the givers can avoid heavier taxes planned by the government.
The value of wealth given to children up to 6 years old jumped 88 percent from 2013 to 257.9 billion won in 2017, the data showed.
Market watchers have pointed out that rich people could use high-value bank accounts as a means to donate wealth to their children and grandchildren illegally.
South Korean parents and grandparents are required to pay gift taxes when they give 20 million won or more in cash to child relatives.