[Edaily Kang Gyeong-rok Travel Reporter] As the government pushes for a tax law amendment to exclude the tourist hotel industry from the family business inheritance tax exemption, it has been confirmed that the Ministry of Culture, Sports and Tourism (MCST)—the ministry in charge—has officially expressed its opposition, stating, “We regret that the industry is being equated with real estate-holding businesses and excluded from the exemption.” With the MCST siding with the industry against the tax law amendment proposed by the Ministry of Economy and Finance (the tax authority), the conflict between government ministries and legislative difficulties are expected to intensify further during the National Assembly’s deliberation process.

According to the National Assembly and government sources on the 10th, the Ministry of Culture, Sports and Tourism (MCST) stated in a written response recently submitted to the office of Rep. Lee Jae-jeong of the Democratic Party of Korea: “We have submitted our opinion to the Ministry of Economy and Finance (MOEF) that the tourism hotel industry should be included in the scope of application, as it requires specialized service capabilities—such as management know-how accumulated over a long period—and contributes significantly to attracting tourists and revitalizing the local economy.”
Accordingly, in its response, the Ministry of Culture, Sports and Tourism stated, “We agree with the tourism industry’s position, which has expressed strong regret over the exclusion of the hotel industry from the family business inheritance tax deduction by treating it under the same criteria as real estate-holding businesses,” thereby explicitly expressing its direct regret regarding the tax reform proposal as the competent ministry.
Previously, the amendment to the Inheritance and Gift Tax Act submitted by the Ministry of Economy and Finance to the National Assembly last September reorganized the eligible industries into 727 specialized technical and know-how succession sectors based on detailed classification criteria, abruptly excluding the tourism hotel industry—which had previously been eligible. The intent is to prevent circumvention of inheritance taxes and tax evasion through real estate holdings.

However, the Ministry of Culture, Sports and Tourism made it clear that the hotel industry is not merely real estate leasing but rather “core tourism infrastructure with significant ripple effects on employment and investment.” The ministry emphasized, “Since the lodging industry has a major ripple effect on domestic industries and the job market—including large-scale investment and employment—stable business continuity through family business succession is necessary.”
In fact, according to survey results cited by the Ministry, the number of workers in the tourism lodging industry increased significantly from 39,445 in 2020 to 47,629 in 2024. In the 2025 Survey on Inbound Tourists, accommodation facilities (34.0%) were cited as a key factor—following public transportation (41.4%) and public safety (40.8%)—that foreign visitors consider when deciding to visit South Korea.
The Ministry of Culture, Sports and Tourism (MCST) plans to re-negotiate with the Ministry of Economy and Finance and refine the system during the National Assembly’s legislative review process. The MCST stated, “We will communicate with the industry and actively cooperate in providing necessary support, such as consultations with relevant ministries, to ensure that hotel companies that actually inherit professional management know-how and employment are given the opportunity to undergo screening.”
Previously, 12 tourism organizations, including the Korea Tourism Association and the Korea Hotel Association, submitted a petition to the Tax Subcommittee of the National Assembly’s Planning and Finance Committee, urging that “genuine hotel operators be excluded from the exemption based on strict evaluations of actual business operations, employment retention, and facility investment records.”
As the subcommittee on bill review within the National Assembly’s Planning and Finance Committee continues its review of the amendment, the Ministry of Economy and Finance’s argument for “preventing real estate tax evasion” is pitted against the Ministry of Culture, Sports and Tourism and the industry’s argument for “preserving tourism infrastructure and maintaining employment.” Consequently, the reform of the family business inheritance tax deduction is expected to be the biggest turning point in this regular session of the National Assembly’s tax law review.