Jung Yong-jin and Yoo Kyung siblings receiving 493 billion KRW in gifts, gift tax confirmed at 296.2 billion KRW

Jung Yong-jin, Vice Chairman of Shinsegae Group (left), Jung Yoo-kyung, President of Shinsegae Department Store Division (right)

[Asia Economy Reporter Lee Seung-jin] The gift tax amount that Jung Yong-jin, Vice Chairman of Shinsegae Group, and Jung Yoo-kyung, General Manager of Shinsegae, must pay after receiving partial shares of Emart and Shinsegae from Lee Myung-hee, Chairwoman of Shinsegae Group, has been finalized at 296.2 billion KRW.

According to the business community on the 30th, Chairwoman Lee gifted 8.22% of Emart shares to her son Vice Chairman Jung and 8.22% of Shinsegae shares to her daughter General Manager Jung on September 28. Since the gift tax amount is determined by averaging the closing prices two months before and after the reporting date, the gift tax amount was finalized on the 27th.

Through this gift, Chairwoman Lee's shareholding will decrease from 18.22% to 10.00% in both Emart and Shinsegae. Vice Chairman Jung's Emart shares will increase from 10.33% to 18.55%, and General Manager Jung's Shinsegae shares will increase from 10.34% to 18.56%.

Vice Chairman Jung received 2,291,512 shares of Emart stock, which, when applying the average closing price two months before and after the gift date, amounts to approximately 319 billion KRW. Since a 50% gift tax rate applies when the gift amount exceeds 3 billion KRW, and an additional 20% surcharge applies when the largest shareholder gifts shares, the gift tax Vice Chairman Jung must pay is 191.7 billion KRW.

General Manager Jung received 809,668 shares of Shinsegae stock. Applying the average closing price results in approximately 174.1 billion KRW. Considering the gift tax rate and surcharge, the gift tax General Manager Jung must pay is 104.5 billion KRW.

The gift tax is more likely to be paid in cash rather than in kind, as paying in kind would reduce the largest shareholder's stake.

Previously, in September 2006, when Vice Chairman Jung and his sister received Shinsegae shares from their father, Honorary Chairman Jung Jae-eun, they paid the gift tax in kind (shares). If the gift tax is paid in shares this time as well, the largest shareholder's stake will change, and this will be disclosed through public announcements.

The payment deadline is within three months from the end of the month in which the gift was received, meaning it must be paid by December 30. However, due to the large amount, it is possible to provide tax payment guarantees and pay in installments over a long period. The installment payment period can be up to five years.

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