"Need to Promote the In-Kind Payment of Inherited Artwork for Tax Purposes"

Published 07 Oct.2026 15:42(KST)

Only One Case Approved in Three Years Since Introduction of the In-Kind Payment Scheme

Is it possible to pay inheritance tax with artwork? Since 2023, with the introduction of the “Cultural Heritage and Artwork In-Kind Payment Scheme”—which allows inheritance tax to be paid via cultural heritage objects or works of art—this has become possible in Korea. However, to date, only one person has utilized this system to pay inheritance tax in this way.

There are no restrictions in genre for cultural heritage items or artworks that can be used in lieu of inheritance tax; paintings, prints, sculptures, crafts, and calligraphy are all eligible. The procedure is as follows: the heir applies at the tax office, after which the Ministry of Culture, Sports and Tourism reviews the value of the piece, and subsequently, the tax office gives final permission after considering factors such as potential loss to the national treasury.

The first—and as of October 2026, only—case occurred in October 2024. Of the 10 works the heir applied to submit, 4 were accepted: “Ilchuldo” by Lee Manik, “Jiphap” by Chun Kwangyoung, and two “Portrait” pieces by the Chinese artist Zeng Fanzhi. All are works by renowned artists both in Korea and internationally. The appraised value was KRW 2,595,000,000, and the pieces were reportedly transferred to the National Museum of Modern and Contemporary Art.

The reason why cases applying the artwork in-kind payment scheme for inheritance tax are rare is the strict application conditions. In order to utilize this option after inheriting a large sum from a parent, the artwork submitted for in-kind payment must itself have been inherited. In other words, it cannot be artwork that the heir already owned independent of the inheritance—it must be part of the inherited estate.

In addition, two further conditions must be met: the amount of inheritance tax owed must exceed KRW 20,000,000, and this amount must also be greater than the total value of any inherited financial assets. If the value of financial assets such as deposits or stocks inherited exceeds the inheritance tax due, the heir is not eligible to apply for in-kind payment with artwork, even if artwork was inherited as well.

Even if all these requirements are met, there remains a significant hurdle: the review of the historical, academic, and artistic value of the artwork.

The original intention behind introducing the in-kind payment scheme was not only to improve taxpayer convenience but also to prevent the overseas outflow of major cultural assets. It also aimed to enable the nation to acquire such works and allow citizens to benefit from them through exhibitions and public display. Hyunjin Kim (Judicial Research and Training Institute, 37th class), professor at Inha University Law School, pointed out at the Korean Association for Inheritance and Trust Studies seminar held on September 9, 2026 that preventing overseas outflow of cultural heritage and expanding collections at national and public museums are positive effects of the in-kind payment scheme.

Looking at foreign cases, the heirs of Picasso contributed his works to France as inheritance tax, and these pieces have become a core part of the collection at the Picasso Museum in Paris. The National Gallery in the United Kingdom has also expanded its collection through works inherited and contributed in this way by the heirs of prominent deceased artists.

Sanghoon Kim (33rd class), managing partner at Trust Law Firm, stated, “The artwork inheritance tax in-kind payment system is not gaining traction due to excessively strict requirements. There is no need to limit eligibility to only inherited artwork, and the condition that in-kind payment is allowed only when there is a lack of financial assets should also be eased.”