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2. Gift Tax
a. Taxpayer
	(1) Resident donee is obligated to pay the gift tax.
	(2) Non-resident donee is obligated to pay a gift tax on the property acquired in Korea.
	(3) Where a donee is a for-profit company, it is exempt from the gift tax.
b. Tax base
	The following may serve as the tax base for a donee's gift property:
		(a) all gift properties that may be changed to certain monetary or economic forms;
		(b) the economic value of legal and actual rights to the gift property.
c. Exclusions
	(1) Property given by the nation
	(2) Property donated to political parties
	(3) Gifts of moderate value (i.e., for medical care and relief)
	(4) School fees, scholarships, etc., paid for as a gift
	(5) Property donated to the Nation or local governments
d. Deductions
	In the case where the resident donee receives a gift from the following persons, he or
	she is granted a deduction (on condition that the combined amount to be deducted for
	the next 10 years and deductions from the following items does not exceed the sum in
	each following item):
		(a) spouse (for an amount up to 300 million won);
		(b) lineal family members (for an amount up to 30 million won for all persons except
			minors for whom an amount up to 15 million won is allowed);
		(c) other family members (for an amount up to 5 million won).
e. Deductions for Losses
	Deductions for Losses Incurred as a Result of Natural Disasters and Other
	Unforeseeable Circumstances =>  Deductions are allowed for fires, collapse of buildings,
	explosions, environmental pollution, natural disasters, etc. that affect the gift property.
	They are allowed for an amount equivalent to that of the loss incurred.
f. Tax Rate
									(Unit : million Won)
			tax base					tax rates
		over		not more than			tax amount	tax rate	of an amount exceeding … Won
				100				10%
		100		500			10	20%	100
		500		1000			90	30%	500
		1000		3000			240	40%	1000
		3000					1040	50%	3000
	ex: for tax base of 2,000,000,000
		=> 240,000,000 + (2,000,000,000 - 1,000,000,000) * 40% =
		=	640,000,000  (effective rate = 640,000,000 / 2,000,000,000 = 32%)
g. Gift Tax for Gifts that Skip a Generation
	Where a donor designates a grandchild as his donee, surtax amounting to 30% of the
	gift tax concerned shall be levied.
h. Tax Credit
	(1) Gift Tax Credit
		A gift tax credit is granted for that part of a gift property that is included as part of
		another gift property.
	(2) Foreign Tax Credit
		A foreign tax credit is granted for a tax amount paid to a foreign country as a gift tax.
	(3) Credit Granted for Prompt Tax Returns
		A 10% credit is granted to those taxpayers that turn in their tax returns on time.
i. Return and Payment
	(1) Return
		A person who acquires gift properties is liable to file a tax return within 3 months after
		receiving the gift, together with detailed statements about the amount to be deducted.
		The government determines the taxable value based on the tax return filed.
	(2) Cash Payment
		Payment can be made in cash installments for three years.
	(3) Payment in Assets
		Where the portion of the real estate or securities out of the gift property is more than
		50% and the gift tax exceeds 10 million won, it is possible to pay by a transfer of real
		estate or securities.
j. Evaluation of Gift Properties
	(1) In principle, gift properties are evaluated by the market price prevailing at the time the
		gift is presented.
	(2) The following methods of evaluation are applied when the market price is not available.
		(a) Land: Official land value set for an individual piece of land
		(b) Buildings:  Standard market value set by the NTS
		(c) Stocks:
			(i) Listed stocks:
				The average market price of four months, two before and two after the transaction
			(ii) Over-the-counter stocks:
				The average market price of four months, two before and two after the transaction
			(iii) Unlisted stocks:
				Evaluated by considering the higher of Net Asset Value or Profit Value, where:
				-	Net Asset Value = Net Asset Amount / Total Stock Issued
				-	Profit Value = The Weighted Average of the Net Profit Per Capita for the Last
					Three Years / Rate Determined by the NTS
k. Determination and Adjustment
	The government shall determine and notify the donee of an adjustment of the tax base
	and tax amount of the gift tax within 3 months from the date of the tax return.