Under Korean law, a deceased person is considered a resident if they were domiciled in Korea or had resided in Korea for 183 days or more. In determining domicile, authorities examine objective factors reflecting the individual’s living circumstances, such as the location of the family members with whom they share a household, ownership of property located in Korea, and other lifestyle connections that indicate their center of life. If the individual’s occupation, family ties, or property situation indicates that they have resided in Korea continuously for 183 days or more, they are deemed to have a domicile in Korea.

While the 183-day rule is a key indicator, it does not automatically determine residency for tax purposes. A comprehensive assessment of the individual’s center of life and overall circumstances is required. In addition, if a non-resident returns to Korea with the intention of permanent residence and passes away while in Korea, that person will be treated as a resident for inheritance tax purposes.

Whether the deceased is classified as a resident or non-resident under Korean tax law can significantly impact the amount of tax they are required to pay in Korea. This is because residency status determines the scope of taxable assets and affects the availability of various tax deductions.
For example, residents may be subject to Korean inheritance tax on their worldwide assets, while non-residents are typically taxed only on assets located in Korea. In addition, if the deceased is classified as a non-resident, most standard inheritance tax deductions, such as the general deduction (KRW 500 million) and spousal deduction (KRW 500 million), will not be available. Only the basic deduction (KRW 200 million) and certain limited expenses, such as appraisal fees, may be applied.
As such, an accurate determination of residency status is essential for effective tax planning and compliance with Korean inheritance tax regulations.

Not necessarily. With proper documentation and a valid Power of Attorney, heirs residing outside of Korea can authorize a legal representative to handle the entire inheritance process on their behalf. The process can be carried out remotely and may include asset verification, court filings, tax declarations, title registration for real property, and even litigation involving inheritance disputes. At Kang & Shin, we manage all required legal and administrative procedures in Korea, allowing heirs to complete the process without the need to travel.

Yes, under certain conditions. For a foreign will to be acknowledged and given legal effect in South Korea, it must meet specific requirements stipulated under Korean law. The Act on Private International Law is the primary legislation governing cross-border inheritance issues in Korea. Generally, the validity of a will is determined by the law of the testator’s nationality at the time the will was made. However, there are important nuances and exceptions, particularly concerning the form of the will and the location of assets. The Civil Act specifies the formal requirements for a will, if Korean law is deemed applicable to the form. Therefore, a careful review of both the testator’s national law and Korean legal provisions is essential.

Under Korean law, the Legal Reserve of Inheritance refers to the statutory minimum portion of an estate that must be preserved for certain close family members regardless of the contents of the deceased’s will. This rule is designed to prevent heirs such as children, spouses, and parents, from being entirely disinherited. Even if a will allocates all of the estate to someone else, eligible heirs may still assert a claim to recover their legally protected share. If an heir receives less than their reserved portion, or is excluded entirely, they may file a claim against other beneficiaries to recover their Legal Reserve of Inheritance.