Yoon Ji-sang, Managing Attorney  |  Hankyung Law & Biz Law Street Column

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A major overhaul of the reserved portion system after 30 years... A new era begins

Codifying that gifts and bequests received as compensation for a contributor's share are excluded from special-benefit calculations
Some provisions also apply to inheritances opened after April 25, 2024

On April 25, 2024, the Constitutional Court ruled that the core provisions of the reserved portion system were inconsistent with the Constitution or unconstitutional, and in step with that decision, the National Assembly passed an amendment to the Civil Act on February 12, 2026. The reserved portion system, which had in practice gone untouched for more than 30 years, has undergone a major overhaul.

The reserved portion of siblings lost effect immediately upon the Constitutional Court's unconstitutional ruling (April 25, 2024), and it also applies to lawsuits already in progress. The most notable change is the expansion of the so-called Goo Hara Act. The Goo Hara Act, enacted in September 2024, made it possible to deprive a lineal ascendant who did not care for or abused the decedent of inheritance rights, and this amendment expanded that scope to include lineal descendants and spouses as well.

The rule recognizing a contributor's share in calculating the reserved portion has also been codified. Gifts and bequests received as compensation for specially supporting the decedent or making special contributions to the formation of property are now no longer treated as special benefits.

The change that will be felt most in practice is the "conversion to monetary payment" of reserved-portion restitution. Previously, the principle was restitution in kind, so estranged heirs often ended up co-owning a single piece of real estate, which frequently led to a vicious cycle of partition-of-shared-property lawsuits. The amendment breaks this chain of disputes by making monetary restitution the rule.

Special attention should also be paid to the fact that the effective date differs from provision to provision. The provisions related to a contributor's share and the rule on loss of inheritance rights apply retroactively to inheritances opened after April 25, 2024, the date of the Constitutional Court decision. By contrast, the monetary restitution rule for the reserved portion applies only to inheritances after the law is promulgated.

The irrationality that "even the unfilial can inherit" has been removed, and a path has been opened for children who devoted themselves to caring for their parents to receive fair treatment. However, the concrete contours of the new system will ultimately be completed through precedents built by the courts, and for the time being we must keep a close eye on the trend of case law.

The "Family Law Unboxing" series is regularly serialized in The Korea Economic Daily's Hankyung Law & Biz Law Street. Managing Attorneys Yoon Ji-sang and Noh Jong-eon of Jonjae Law Firm take turns unpacking key issues in divorce and inheritance based on their practical experience.

Watch the video on the Jonjae Law Firm YouTube 'Family Law Unboxing' channel