Anna Jiwon Park has been covering the politics at The Korea Times since the summer of 2024, when she joined the press pool for the Office of the President in Korea. Prior to that, she spent about five years reporting extensively on financial markets, regulatory authorities and the financial industry. She joined The Korea Times in 2019 after spending eight years as a broadcast journalist at Arirang TV, Korea’s leading global broadcaster, covering politics, defense and culture.
President rebukes business lobby group over 'fake' millionaire exodus report
President Lee Jae Myung listens to remarks by SK Group Chairman Chey Tae-won, second from left, at a roundtable event on the theme of global artificial intelligence cooperation at the Ulsan Exhibition and Convention Center in Ulsan, June 20, 2025. Korea Times photo by Wang Tae-seog
By Anna J. Park
KCCI apologizes over 'unreliable' data; trade ministry vows audit
A report by Korea’s top business lobby group linking inheritance taxes to an exodus of wealthy individuals has triggered a political backlash, drawing sharp criticism from President Lee Jae Myung and prompting a government audit.
Lee on Saturday labeled the report “fake news” in a post on social media platform X (formerly Twitter), accusing the Korea Chamber of Commerce and Industry (KCCI) of seeking to undermine government policy.
“Producing and spreading fake news to pursue private gain and attack government policy deserves strong condemnation," Lee wrote. "It is hard to believe that an official organization such as the KCCI would engage in such conduct."
The president stressed the need to “strictly hold those responsible and establish safeguards to prevent recurrence.”
The controversy stems from a press release distributed by the KCCI on Wednesday, citing the research by Henley & Partners, a British consulting firm. The report stated that 2,400 millionaires left Korea last year, which is double the number from the previous year. It placed the country fourth worldwide in terms of outflows of the wealthy.
In the release, the KCCI attributed this trend primarily to Korea’s inheritance tax pressure, and many local media outlets ran headlines about the issue.
The credibility of the report, however, was soon challenged. Critics noted that the underlying research was conducted by a foreign immigration consultancy rather than an independent statistical authority, with unclear methodologies and criteria. They also pointed out that the original data did not explicitly identify inheritance tax as a driver of emigration. Instead, the KCCI added its own interpretation, stating that inheritance tax rates of up to 50-60 percent “could act as a major factor accelerating capital outflows.”
KCCI's apology and gov't scrutiny
Hours after the president’s rebukes, the KCCI issued an official apology, acknowledging shortcomings in its handling of the data. Chey Tae-won, the organization’s chief and SK Group chairman, instructed officials to implement measures to prevent similar incidents in the future, saying that "as a responsible institution, the KCCI should have reviewed the data more thoroughly."
The controversy drew further attention after Trade Minister Kim Jung-kwan announced a hard-line response. In a social media post Saturday, Kim said that the KCCI had caused “serious confusion across the public, markets and government policy” by distributing unverified and unreliable information.
He emphasized that the unchecked spread of such information amounted to “clear fake news.” Because the KCCI is a special corporation under the jurisdiction of the ministry, he said the ministry would immediately conduct an audit into the preparation and distribution of the press release.
“Depending on the results, strict accountability will be enforced,” Kim said.
Opposition pushback
The government’s response drew strong criticism from the main opposition People Power Party (PPP), which accused the president of suppressing criticism by branding corporate warnings as fake news.
Rep. Park Sung-hoon, the party's chief spokesperson, said that although debate over incorrect data is appropriate, the president should rebut or explain an issue rather than making ethical judgments and doling out punishment.
“When facing criticism, Lee labels it as 'distortion,' 'agitation,' 'vested rights' and 'malicious group,'” Park said, adding the president should refrain from intimidating those who present news that is unfavorable to the administration.
The party further criticized Lee for responding via his personal social media rather than through a formal policy review.
“The president is positioning himself at the forefront of emotionally charged social media attacks on economic organizations,” said Choi Soo-jin, the party’s chief floor spokesperson, calling the approach inappropriate for the nation’s top leader.
“What the economy needs now is not a government that silences corporate voices, but one that responsibly translates on-the-ground warnings into policy improvements.”