Inheritance of Shin Kyuk-ho worth 1 trillion KRW, divided among 4 children... inheritance tax alone 450 billion KRW

Shin Dong-bin, Chairman of Lotte Group, and Shin Dong-ju, Chairman of SDJ Corporation, are paying tribute with flowers at the funeral ceremony of the late Shin Kyuk-ho, Honorary Chairman of Lotte Group, held on the 22nd at the Lotte World Mall Concert Hall in Songpa-gu, Seoul. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Seungjin Lee] The bereaved family of the late Shin Kyuk-ho, Honorary Chairman of Lotte Group, have reached an agreement on the division of the inheritance. This comes about six months after Chairman Shin's passing in January, with the inheritance estimated to be worth over 1 trillion won.

According to the business community on the 29th, the heirs of Chairman Shin's estate, including Shin Dong-bin, Chairman of Lotte Group, Shin Dong-joo, Chairman of SDJ Corporation, Shin Young-ja, former Chairwoman of the Lotte Scholarship Foundation, and Shin Yu-mi, former advisor of Hotel Lotte, recently agreed on the method of settling the inheritance and drafted a related agreement.

Inheritance law stipulates that "inheritance tax must be reported by the end of the sixth month after the heir's death," making the deadline for inheritance tax filing this month on the 31st. It appears that the bereaved family proceeded with the inheritance agreement until the last moment before the tax filing deadline.

Under this agreement, the bereaved family must pay approximately 450 billion won out of the roughly 1 trillion won inheritance as inheritance tax to both South Korea and Japan. According to laws concerning inheritance and gifts, a tax rate of up to 50% is applied when inheriting assets worth over 3 billion won.

Among the late Chairman Shin's inheritance, Lotte Group affiliate shares in South Korea include Lotte Holdings (common stock 3.10%, preferred stock 14.2%), Lotte Shopping (0.93%), Lotte Confectionery (4.48%), Lotte Chilsung Beverage (common stock 1.30%, preferred stock 14.15%), and the unlisted company Lotte Property & Development (6.87%). In Japan, shares include Lotte Holdings (0.45%), Kwang Yoon Sa (0.83%), LSI (1.71%), Lotte Green Service (9.26%), Family (10.0%), and Krispy Kreme Doughnuts Japan (20.0%). Among these, the shares of Lotte Property & Development have already been settled.

In addition, land located in Moksang-dong, Gyeyang-gu, Incheon, valued at approximately 400 billion won, is also subject to division. Including affiliate shares and real estate, the inheritance is estimated to be around 1 trillion won. The specific inheritance ratios have not been disclosed.

Chairman Shin's wife, Hatsuko Shigemitsu, is not registered as a spouse in South Korea, and Seo Mi-kyung, mother of Shin Yu-mi, is in a de facto marital relationship and is not a legal spouse, so they are reportedly excluded from this property division.

This content was produced with the assistance of AI translation services.