South Korea's ruling party proposes a major overhaul of inheritance tax rules, aiming to base levies on book value rather than market price for certain listed stocks. The plan targets heirs inheriting shares trading below a price-to-book ratio of 0.8, calculating tax on asset value and earnings instead of current share price. President Lee Jae Myung's Democratic Party argues this would eliminate the incentive for companies to artificially suppress stock prices to reduce inheritance tax burdens and maintain family control, potentially closing the infamous 'Korea discount' — the country's persistent share price weakness relative to peers. Heirs to top conglomerates face Won64.8tn ($45.2bn) in combined tax bills, highlighting the scale of the issue. Analysts widely cite the high inheritance tax rate, currently 50% with a potential 60% surcharge for controlling shareholders, as a core driver of this discount, though the government opposes cuts fearing entrenched dynastic control.