[Korean Law Insights] Civil Code Amendment That Changed the Standard of Inheritance

[Published on April 14, 2026 edition of the "Korean Law Insights" column in the Korea Daily’s Economic Expert Section]

• From the Return of Property Itself to Monetary Valuation and Settlement

• The Contributive Portion Regarding Special Benefits and the Practical Timing of Application Are Also Important

Under inheritance law, the reserved portion is a system designed to guarantee a minimum share to certain heirs. However, in the past, the principle was to return the property itself, such as a share of real estate or a portion of stocks, which often placed it at the center of inheritance disputes. In the course of such disputes, a single piece of real estate would become jointly owned, and shares of a family company would be divided, frequently leading to auctions or disputes over management control.

Although it was previously possible, as an exception, to return the value in cash, relying on such exceptional treatment inevitably created unpredictable situations. In that regard, it is welcome that, through the recent amendment to inheritance law, the method of returning the reserved portion has been changed in principle from the return of property itself to the payment of value, that is, settlement in money.

However, it should be noted that when the value must be returned, if the necessary cash resources cannot be secured, new conflicts and disputes may arise. If there is insufficient cash, the inherited property may ultimately have to be sold, and in that process, losses may occur due to disposition at a price lower than market value, such as through a forced sale. Therefore, future inheritance planning needs to consider not only the distribution of assets but also the securing of liquidity in the event of disputes.

It is also noteworthy that the amendment has revised the provisions on the contributive portion in relation to special benefits. “Special benefit” refers to a special advantage that is effectively regarded as having been received in advance as part of one’s inheritance share, such as when one of the co-heirs receives a gift during the lifetime of the decedent or receives separate property by will. Since this is taken into account in calculating the reserved portion, a co-heir who has received a special benefit may receive less or be required to pay more accordingly. However, the amended law provides that gifts or bequests made as compensation for having specially supported the decedent or having substantially contributed to the maintenance or increase of the decedent’s property shall not be regarded as special benefits, to the extent corresponding to such contribution. Accordingly, even if one receives separate property through a lifetime gift or will, if it is recognized as a contributive portion for so-called “filial devotion,” it may be excluded from special benefits and thus not be subject to disadvantageous treatment in relation to the reserved portion. Future disputes are likely to become more intense, focusing not only on how much each person received, but also on why it was received.

It is also important that the scope of application for disqualification from inheritance has been expanded. The amended law allows the family court to declare the loss of inheritance rights not only for lineal ascendants but also for all heirs, including lineal descendants and spouses, if they have seriously violated their duty of support, committed a serious criminal act, or treated the decedent in a grossly improper manner. If disqualification from inheritance is recognized, the relevant heir loses not only their status as an heir but also their reserved portion, and the effect retroactively applies to the commencement of inheritance, that is, the time of the decedent’s death.

It should be noted that the timing of application differs among these amendments. The provisions on disqualification from inheritance and contributive portions apply retroactively to inheritances commenced on or after April 25, 2024, whereas the provision on monetary payment of the reserved portion applies only to inheritance cases commenced on or after March 17, 2024, when the amended law came into effect. Ultimately, in practice, the time of the decedent’s death, that is, the commencement date of inheritance, becomes critically important, no less than the date of a will or the timing of a gift. This is because even within the same family’s inheritance dispute, different legal principles may apply depending on each issue. The amended inheritance law is changing the standard of inheritance. Under the amended law, fairness of distribution, securing liquidity, and even the timing of application must all be considered together in planning.

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Jin Hee Lee/K-Law Consulting Korean Attorney

[Reference link in original Korean]

https://www.koreadaily.com/article/20260414230137039