On several occasions, when a South Korean dies, he leaves behind a family up North. Once they hear of this news, they fight with his other family down south, for part of the inheritance. There was a law passed, to restrict the access to this money flowing up North, because a lot of these cases were being won. As a result, a girl had even fled from the North to the South specifically to get her share of her deceased grandfather’s inheritance. Now, another law is being passed to protect these assets for North Korean citizens, and further restricting inheritance money flow upwards:
“This special law, the first domestic law made to cope with inter-Korean reunification, will serve as a touchstone for unifying the laws of the two Koreas,” a ministry official said.
The bill also requires North Korean inheritors to name a local manager for the assets within three months of inheritance and to report any changes in the property to the South Korean government.
The heirs must get approval from the government if they want to take any inherited assets out of the country.
The restriction on the overseas transfer of assets is aimed to ease mounting concern that North Korean authorities could take advantage of the inheritance system, according to the Seoul government.