Summary of "10억을 가족끼리 계좌이체 해도 절대 세무조사 없습니다, 이제부터 속지 마세요. (안수남 세무사 / 풀버전)"

Summary of Finance-Specific Content from the Video

“10억을 가족끼리 계좌이체 해도 절대 세무조사 없습니다, 이제부터 속지 마세요. (안수남 세무사 / 풀버전)”

Key Topics Covered

1. Gift Tax and Family Transactions

Family transfers of large sums (up to tens of billions KRW) via account transfers generally do not trigger tax investigations by the National Tax Service (NTS).
Gift tax applies when parents give money “for free” to children, but living expenses, allowances, and tuition paid according to social norms and the recipient’s financial ability are exempt.
Conditions for non-taxable family support:
- Money must be used for its intended purpose (e.g., living expenses, tuition).
- Recipient must lack sufficient financial ability (e.g., high-earning adult children receiving large allowances may trigger gift tax).
- Amounts given should be within social norms (e.g., not excessively large allowances).
Transfers between spouses are considered an economic community; thus, transfers alone do not trigger tax issues unless saved funds are used to acquire assets in one spouse’s name without proper documentation.

2. Account Transfers and Tax Investigations

The NTS does not directly investigate account-to-account transfers.
Cash transactions exceeding 10 million KRW are automatically reported to the Financial Intelligence Unit and may be scrutinized if suspicious.
Tax audits involving account access occur mainly for:
- Business owners (individual or corporate tax audits).
- Capital source investigations for individuals with asset growth exceeding income over 5 years.
- Inheritance tax investigations (tracking accounts for 10 years post-death).
Ordinary individuals have a near-zero chance of tax audits solely for account transfers.

3. Gift Tax Deductions and Allowances

Gift tax exemptions per 10-year period:
- Married couples: up to 600 million KRW.
- Adult children: 50 million KRW.
- Minors: 20 million KRW.
- Other relatives: 10 million KRW.
Gifts can be given repeatedly every 10 years; cumulative gifts over this period are aggregated for tax purposes.
Strategy: Distribute gifts among multiple recipients (children, spouses, grandchildren) to maximize tax-free allowances.
Gifts should be properly documented and reported to avoid penalties.
Gift tax rates:
- Up to 200 million KRW: 10%
- Higher amounts escalate progressively, up to 50% for very large gifts.

4. Investing in Children’s Names

Investing in stocks, ETFs, or crypto (e.g., Bitcoin) under a child’s name without formal gifting and reporting is considered a gift and may trigger tax issues.
Proper method:
1. Make a formal gift first with a gift tax report.
2. Transfer money to the child’s account.
3. Then invest under the child’s name.
Loan agreements are necessary if money is lent instead of gifted, requiring proof of financial ability, interest payments (statutory rate 4.6%), and repayment schedules.
Interest-free loans up to 10 million KRW per year between parents and children are allowed without triggering imputed interest tax.

5. Loan Agreements and Tax Compliance

To avoid gift tax on loans to family members:
- Four conditions must be met:
  1. Borrower’s repayment ability.
  2. Proof of interest payment.
  3. Principal repayment agreement.
  4. A formal loan contract.
- Interest rate should be at least the statutory rate (4.6%), but lower interest rates are allowed for small amounts (up to 10 million KRW interest-free).
- Loan agreements should be dated and preferably registered or notarized for proof.
- Failure to repay interest or principal can lead to reclassification as a gift.

6. Inheritance Tax and Gift Tax Overview

Inheritance tax is levied on asset transfers at death; gift tax applies to lifetime transfers.
Both taxes share the same rate schedule but differ in deduction amounts:
- Inheritance tax has higher basic and spousal deductions (up to 4.3 billion KRW combined).
- Gift tax deductions are smaller (600 million KRW for spouses, 50 million KRW for children).
Gifts given within 10 years before death are added back to inheritance for tax purposes.
Real estate valuation methods for inheritance and gift tax are changing (from 2025, residential real estate will be appraised more strictly, reducing loopholes).
Capital gains tax applies on sale of inherited or gifted assets, calculated differently depending on acquisition price and holding period.
Inheritance tax rates can reach up to 50%; gift tax rates escalate similarly.
Tax planning should consider timing (10-year rule), recipient structure, and asset type to minimize total tax burden.

7. Tax Planning Strategies

Spread gifts over time (every 10 years) and among multiple recipients to maximize exemptions.
Use formal loan agreements to lend money to children rather than gifting large sums outright.
Consider creating family corporations for asset management and tax efficiency.
Plan inheritance and gifts with professional tax accountants to optimize deductions and exemptions.
Long-term tax planning is critical to reduce inheritance tax and gift tax burdens.

8. Tax Investigations and AI

The NTS uses AI to detect tax evasion, especially in cases of disguised joint ownership or fake employees.
Tax investigations focus on irregularities and hidden assets, not routine family transactions.
Performance-based bonuses for tax officials are rare and only apply in special cases (e.g., uncovering hidden assets, winning difficult tax lawsuits).

9. Dividend Income Tax and Corporate Tax Issues

Dividend income tax on major shareholders can exceed 40%, leading to an effective tax rate over 60% after corporate tax.
High dividend tax discourages dividend payouts, causing companies to retain earnings rather than distribute.
There is political interest in reducing dividend income tax to stimulate economic activity and investment.

10. General Advice and Disclaimers

Tax laws are complex and frequently revised; up-to-date expert consultation is essential.
Avoid relying on informal advice or unverified online sources.
Proper documentation and reporting are crucial to avoid penalties.
Tax saving is a legal right; tax evasion is illegal.
The speaker emphasizes the importance of family harmony in inheritance planning.
Not financial advice; viewers are encouraged to consult qualified tax professionals.

Methodologies / Frameworks Highlighted

Gift Tax Planning:
- Identify recipients and maximize exemptions.
- Distribute gifts over 10-year periods.
- Keep detailed records and file gift tax returns.
- Avoid disguised gifts via loans without agreements.
Loan Agreement Requirements:
- Assess borrower’s financial ability.
- Draft formal loan contract with repayment schedule.
- Charge statutory or agreed interest.
- Maintain proof of interest and principal payments.
Inheritance Tax Planning:
- Evaluate asset types and values.
- Consider timing of gifts (10-year rule).
- Use spousal and child deductions effectively.
- Coordinate asset transfers to minimize taxable value.
- Use expert consultation for complex cases.
Investment in Children’s Names:
- Formal gifting and reporting before investing.
- Avoid using children’s names without gift documentation.

Key Numbers and Timelines

Gift tax exemptions (per 10-year period):
- Spouses: 600 million KRW
- Adult children: 50 million KRW
- Minors: 20 million KRW
- Other relatives: 10 million KRW
Statutory interest rate for loans: 4.6%
Tax investigation look-back periods:
- Account tracking for inheritance tax: 10 years
- General tax investigations: 7 years
Combined capital gains tax and inheritance tax rates: up to ~65%
Real estate price example:
- Apartment price rose from 200 million KRW in 2000 to 3 billion KRW in 2025 (15x increase)

Disclosures / Cautions

The content is not formal financial advice; consult qualified tax professionals.

Tax laws frequently change; always use the most current information.

Improper documentation or informal agreements can lead to tax penalties.

Family harmony should be prioritized in inheritance planning.

Tax evasion is illegal; tax saving is a legal right.

Mentioned Assets, Instruments, and Sectors

Real estate (residential and commercial properties)
Stocks (listed and unlisted)
ETFs
Bitcoin and other cryptocurrencies
Family corporations for asset management
Loans and promissory notes
Credit card usage within families

Presenter

Mr. Ansunam, representative tax accountant of Seboin Dasowol, also runs the YouTube channel “Dasol Tax.”

This summary condenses the detailed discussion on family financial transactions, gift and inheritance tax planning, tax investigation risks, and investment considerations within the South Korean tax context.