When a person with Korean nationality or assets in Korea passes away, heirs (both Korean and foreign) often face significant challenges in identifying, verifying, and properly accounting for all the deceased’s assets (and liabilities). A thorough “asset check” is an essential first step. For an article on the basics of Korean Inheritance Law, please see: Korean Inheritance Law Q& A.
Inheritance Asset Checks in Korea
An inheritance asset check in Korea is the process by which heirs (or their representatives) identify and verify all of the decedent’s assets and liabilities, as of the time of death, that may fall into the Korean estate to be inherited. This includes:
- Real property (land, buildings, houses)
- Bank accounts, securities, deposits
- Insurance policies, annuities, pensions
- Personal property (jewelry, vehicles, art, valuables)
- Business interests, shares, corporate holdings
- Digital assets (cryptocurrency, online accounts)
- Liabilities and debts (loans, mortgages, unpaid taxes)
The purpose is to assemble a complete inventory so that inheritance division, tax calculation, and settlement of the estate can proceed. Korea does not have a probate court; thus, this process must be performed by the heirs, as it shall not be completed unilaterally by a Korean court or government agency.
Heirs, in Korea, may inherit assets and even debt; thus, in many cases, it is advisable to file a qualified acceptance of the Korean estate or renounce the Korean estate.
Steps for Heirs to Conduct an Asset Check
In most cases, it is advisable to have the asset check completed by a proactive Korean estate law attorney:
| Step | Action | Key Considerations |
|---|---|---|
| 1. Identify the heirs | Confirm who the legal heirs are under Korean law or by will | The key is to establish that you are an heir, which, in many cases, requires a battery of documents. |
| 2. File a Korean estate search inquiry | Heirs (or legal representatives) can request that government agencies or institutions in Korea assist in locating accounts or registered assets. | The key is to establish that you are an heir, which, in many cases, requires, a battery of documents. |
| 3. Korean real property records | Search the real estate registry (등기부등본) for land, houses, condos, and other buildings. | Be sure to check for co-owners, mortgages, liens, and whether any transfers were made before death. |
| 4. Korean banks / security firms / financial accounts | Contact banks, financial institutions, investment firms in Korea | Examine life insurance, annuities, pension plans, and whether they bypass inheritance procedures. Check compliance with the law. |
| 5. Korean insurance, pensions, and retirement benefits | Some policies may have named beneficiaries. | Examine life insurance, annuities, pension plans, and whether they bypass inheritance procedures. Check compliance with law. |
| 6. Business interests | Valuation may require accounting or appraisal | Inventory jewelry, art, vehicles, collectibles, and digital assets |
| 7. Personal property, valuables, and collectibles | Inventory jewelry, art, vehicles, collectibles, digital assets | For high-value items, appraisals may be warranted |
| 8. Determine liabilities and debts | Gather loan statements, mortgages, credit obligations, and unpaid taxes | Confirm whether the debts are enforceable and whether they have priority over heirs. In some cases, it is advisable to file a “qualified acceptance.” |
| 9. Prepare a list of assets and liabilities | Consolidate the findings in a formal schedule | Review this document with your lawyer. |
| 10. Engage professionals | Lawyers, tax accountants, and, in some cases, appraisers | Lawyers, tax accountants, and in some cases, appraisers are required in all but the most exceptional of cases |
What Heirs Should Do After the Death of a Loved One
- Act promptly: deadlines for renunciation, qualified acceptance, tax filings, and estate settlement timing are strict and may lead to fines or the inheritance of a debt that can be enforced abroad. Inheritance of Korean Debts.
- Engage legal & tax professionals: few cases are straightforward, especially for cross-border assets or larger estates with multiple heirs. Most experienced law firms in Korea work with tax professionals.
- Document everything carefully: maintain records, correspondence, certificates, and all government documents and communications.
- Prepare a list of known assets: maintain a detailed list of worldwide assets. This can be useful for a discussion with your lawyer and to determine the best path going forward.
by Sean Hayes
Sean Hayes is the first non-Korean attorney to have worked for the Korean court system (Constitutional Court of Korea) and one of the first non-Koreans to be a regular member of a Korean law faculty. Sean is ranked, for Korea, as one of only a few non-Korean lawyers as a Top Attorney by AsiaLaw. Sean is regularly quoted by leading international media outlets, including The Wall Street Journal, The New York Times, France 24, and Bloomberg. Sean works with leading retired judges, former government attorneys, corporate counsel, and top-rated lawyers who worked with major global law firms throughout Asia, Europe, and North America.
You may schedule a call with Sean Hayes at: Schedule a Call with an Attorney.