South Korean charities push tax incentives for legacy giving

April 15 (Asia Today) -- More than 200 Protestant-affiliated charities in South Korea are urging lawmakers to adopt tax incentives for legacy donations, arguing the measure would significantly expand the country's culture of giving.

Organizations including World Vision, Korea Food for the Hungry International, Good Neighbors and ChildFund Korea have called for legislation to introduce a "Korean-style Legacy 10" system.

The proposal would offer inheritance tax reductions for individuals who donate at least 10% of their estate to charitable organizations.

A bipartisan group of lawmakers has already introduced a bill to amend inheritance and gift tax law. The proposal would grant a 10% tax credit on inheritance tax if donations to public-interest organizations exceed 10% of the estate's taxable value.

Supporters say institutional backing is needed because South Korea's donation culture remains weak compared to its economic status. According to the World Giving Index 2024 published by the Charities Aid Foundation, the country ranked 88th out of 142 nations, below the global average.

At the same time, public willingness to donate appears relatively high. A survey by Gallup Korea found that 53.3% of respondents said they would consider legacy donations if tax incentives were introduced.

Despite that interest, legacy giving accounts for less than 1% of total donations in South Korea, highlighting the limits of voluntary participation without policy support.

Advocates point to international examples, particularly the United Kingdom, where a similar system introduced in 2012 reduced inheritance tax rates from 40% to 36% for qualifying donations.

Legacy donations in the U.K. rose from about 5.7 trillion won (about $4.3 billion) in 2015 to 8.5 trillion won (about $6.4 billion) in 2024, a level estimated to be roughly 2.7 times the government's annual tax revenue loss from the policy.

Charity leaders say the proposed system could transform legacy giving from a personal choice into a broader social norm.

"Legacy giving is a meaningful way to connect personal values to future generations and society," said Cho Myung-hwan. "We hope this legislation will serve as a catalyst for expanding the culture of giving."

-- Reported by Asia Today; translated by UPI

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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260415010004732

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This story was originally published April 15, 2026 at 6:05 PM.