[Alpha Biz= Paul Lee] Controversy is mounting over a press release issued by the Korea Chamber of Commerce and Industry (KCCI) claiming a sharp rise in wealthy Koreans leaving the country, prompting strong criticism from President Lee Jae-myung and senior economic policymakers.

Deputy Prime Minister and Finance Minister Koo Yun-cheol said on Friday that the statistics cited were “highly questionable,” calling claims that 2,400 wealthy individuals left South Korea due to inheritance tax burdens “fake news.” A day earlier, Industry Minister Kim Jung-kwan said the government would take “firm action,” announcing an immediate audit into how the press release was prepared and distributed.

The backlash followed a KCCI statement released on July 3 titled “Korea Ranks Fourth Globally in Wealthy Exodus Due to Inheritance Tax Burden,” which cited research by UK-based migration consultancy Henley & Partners. The report argued for reforming inheritance tax payment methods to ease corporate succession and personal tax burdens.

However, the data has already faced credibility challenges overseas. The UK-based Tax Justice Network previously criticized the methodology, saying the figures were based on social media location data rather than actual migration records and exaggerated the scale of millionaire relocation.

The Ministry of Trade, Industry and Energy, which oversees the KCCI, said an audit would be the first step, with follow-up measures to be considered after reviewing the results. The government also said it would explore institutional and administrative steps to prevent the spread of unverified or misleading economic information.

A KCCI official said the organization was unaware of overseas controversies surrounding the data and acknowledged shortcomings in verification, adding that it is reviewing measures to strengthen fact-checking procedures.

The KCCI is a statutory private-sector economic organization established under South Korean law and is currently chaired by Chey Tae-won, who reportedly urged the organization to prevent a recurrence of similar incidents.

 

 

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