Shinsegae Siblings Jeong Yong-jin and Jeong Yoo-kyung to Pay 296.25 Billion KRW Gift Tax in Installments Over 5 Years

[Asia Economy Reporter Lim Hye-seon] Chung Yong-jin, Vice Chairman of Shinsegae Group (photo), and Chung Yoo-kyung, General Manager of Shinsegae, have decided to pledge shares as collateral and pay the gift tax of 296.2 billion KRW on the shares received from Lee Myung-hee, Chairwoman of Shinsegae Group, in installments over five years.

On the 29th, Emart announced that Vice Chairman Chung signed a contract with Bundang Tax Office to provide 1.4 million shares (5.02%) of Emart as tax payment collateral. Shinsegae also announced that General Manager Chung signed a contract with Yongsan Tax Office to provide 500,000 shares (5.08%) of Shinsegae as tax payment collateral. Based on the closing price on that day, the shares pledged as collateral by the two amount to 210.7 billion KRW and 117.2 billion KRW, respectively.

Vice Chairman Chung and General Manager Chung provided shares as collateral to utilize the installment payment system. By providing tax payment collateral, they can pay one-sixth of the total inheritance tax amount at the time of filing with an annual interest rate of 1.8%, and then pay the remaining five-sixths in installments over five years from the date of installment payment approval.

Earlier, on September 28, Chairwoman Lee gifted 8.22% of Emart shares to her son, Vice Chairman Chung, and 8.22% of Shinsegae shares to her daughter, General Manager Chung. The final gift tax amounts to approximately 191.7 billion KRW for Vice Chairman Chung and 104.5 billion KRW for General Manager Chung.

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