This undated imaged provided by the Federation of Korean Industries (FKI) shows the facade of its headquarters in Yeongdeungpo District, Seoul. Korea Times file

Eight out of 10 Korean tax experts see the need to ease inheritance tax to reflect an increase in national income and asset prices, the country's main business lobby said Monday.

In a survey of 106 experts, including tax accountants and professors, 82.1 percent of them stood for the revision of tax laws to lower inheritance tax, the Federation of Korean Industries (FKI) said in a statement.

They pointed out the taxation system, which has remained unchanged since 1999, does not reflect the fact the number of individuals and corporations subject to inheritance taxes has jumped due to increased earnings and asset values, the statement said.

The FKI also pointed out that an inheritance tax rate of 50 percent may be too high, weighing on the competitiveness of corporations and their business stability, while it may also work as double taxation, in addition to income tax.

Korea's 50 percent tax rate is the second-highest level among the 38 member countries of the Organization for Economic Cooperation and Development, an FKI official noted.

A majority of the respondents said eased inheritance tax rate will have a positive impact on the Korean economy and help resolve the "Korea discount," a chronic undervaluation of Korean shares relative to their global peers, the FKI said.

In a separate survey of 1,000 people, 73.4 percent of respondents agreed on easing inheritance tax for similar reasons, it added.

"Some other countries have abolished or eased inheritance taxes to generate friendly business environments for companies. Korea needs to improve business market conditions and attract overseas investments through a tax revision," an FKI official said. (Yonhap)