President Lee defends tax reforms and unveils 7 SEED technology projects

President Lee Jae-myung has addressed criticisms regarding the government’s 2026 tax reform plan, specifically the tightening of requirements for the family business inheritance tax deduction. Responding to backlash from sectors such as transportation, retail, and medical services that were excluded from the deductions, Lee stated that reducing unfair exemptions is a path toward “tax normalization.” He questioned the fairness of providing tens of billions of won in tax breaks to these specific industries.

The proposed reforms aim to prevent the inheritance tax deduction from being used as a tool for improper wealth transfer. Key changes include refining the eligible industries and increasing the required management period from 10 to 30 years.

In a separate initiative, President Lee hosted the ‘7 SEED Projects’ briefing at the Blue House to focus on future growth engines. He emphasized that South Korea must move beyond being a semiconductor powerhouse to become a leader in advanced science and technology. The seven strategic sectors identified are small modular reactors (SMR), nuclear fusion, renewable energy, quantum technology, aerospace, advanced biotechnology, and advanced materials/components supply chains.