'Stock Gift' Kakao Kim Beom-su Family, Gift Tax Alone 42 Billion Won

[Asia Economy Reporter Kang Nahum] It has been revealed that the gift tax to be paid by Kim Beom-su, Chairman of Kakao's Board of Directors, his wife, and their two children amounts to a total of 42 billion KRW.

According to Kakao on the 16th, Chairman Kim gifted 330,000 shares of the company to his relatives on January 12. At that time, his wife Hyung Mi-sun and their two children, Sang-bin and Ye-bin, each received 60,000 shares. In addition, 11 other relatives of Chairman Kim received between 4,200 and 25,000 shares.

A total of 330,000 shares were distributed among family and relatives, which, based on Kakao's closing price of 440,000 KRW at the time, amounts to approximately 145.2 billion KRW. Chairman Kim's stake decreased by about 0.5 percentage points from 14.2% (12,500,631 shares) to 13.74% (12,176,631 shares).

The gift amount is determined by averaging the closing prices for two months before and after the gift date. Accordingly, the gift tax amount was finalized on the 12th. Kakao's average closing price over four months was 424,000 KRW, and applying this to the 60,000 shares received by one family member results in a gift value of approximately 25.4 billion KRW. However, when the largest shareholder gifts shares, a 20% premium is added, increasing the taxable gift value to 30.5 billion KRW.

Applying a 50% progressive tax rate, gift tax exemptions for spouses (60 million KRW) and direct ascendants (50 million KRW), and deductions for reported tax amounts, the gift tax payable by each member of Chairman Kim's family is about 14 billion KRW. Thus, the total gift tax for the three family members amounts to approximately 42 billion KRW.

It is not yet known how Chairman Kim's family will pay the gift tax. However, given the large tax amount, it is highly likely they will provide collateral and utilize the installment payment system over a long period. Previously, when Chung Yong-jin, Vice Chairman of Shinsegae Group, received shares from Chairman Lee Myung-hee, this system was also used.

Since Sang-bin and Ye-bin are still in their twenties and likely do not have the funds to pay the gift tax, it is speculated that Chairman Kim may pay on their behalf. However, paying the gift tax on behalf of others is also considered a "gift," which could result in additional gift tax liabilities, posing a burden.

Meanwhile, on the same day, Chairman Kim officially pledged to donate more than half of his wealth by joining the global voluntary giving movement, The Giving Pledge.

The Giving Pledge is a voluntary philanthropic campaign started in 2010 by Bill Gates, Chairman of Microsoft, his wife Melinda Gates, and Warren Buffett, Chairman of Berkshire Hathaway, pledging to return their wealth to society. Chairman Kim became the 220th donor to join The Giving Pledge.

Chairman Kim stated, "My wife and I, through this pledge today, intend to donate more than half of our wealth to society before we die. Among the many topics we have discussed and contemplated with our children over a long time, we plan to use the donations first for causes that can help solve social problems."

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