Inheritance tax is paid in cash as a rule. In-kind payment may be requested only where real estate and securities exceed half the estate, the tax due exceeds 20 million won, and the inherited financial assets cannot cover the bill. All three conditions must be met.

The assets usable also follow an order: government and public bonds first, then exchange-listed securities, then domestic real estate, then other securities. Tax offices may refuse assets that are hard to manage or dispose of—property encumbered by leases or mortgages, or land split into fractional shares, being typical.

In practice it is weighed against instalment payment over up to ten years. In-kind payment removes the cash burden by handing over assets, but a valuation below market price means a loss. Instalments preserve the assets but carry an interest-like surcharge.

Many of Korea's Chinese families hold assets split between Korea and their home country. Overseas assets are generally not eligible for in-kind payment, and double taxation is handled separately through the foreign tax credit. Hwagyo Sibo offers no conclusion on individual cases and recommends consulting a tax professional.