KAMCO and Related Agencies Hold Briefing on Support for Companies Paying Inheritance Tax with Stocks...

Main Programs of the Briefing Session. Photo by Korea Asset Management Corporation

[Asia Economy Reporter Song Seung-seop] Korea Asset Management Corporation (KAMCO) held the '2021 Stock-in-Kind Payment Company Support Program Briefing Session' on the 11th together with partner organizations.

This briefing session is part of the government's 'Improvement Plan for the Stock-in-Kind Payment System for Unlisted Stocks.' KAMCO, which is in charge of managing national tax stock-in-kind securities, and partner organizations prepared this to jointly help enhance the value and stabilize the management of stock-in-kind payment companies.

The stock-in-kind payment system for unlisted stocks is a system where taxpayers pay taxes with assets (securities) when it is difficult to pay taxes in cash. Companies that pay taxes with inherited unlisted stocks, etc., because it is difficult to bear inheritance tax in cash, are called stock-in-kind payment companies. The government has implemented system improvements to prevent insolvency of stock-in-kind payment companies and moral hazard of taxpayers to increase national treasury revenue and contribute to business succession of small and medium enterprises.

Partner organizations such as the Small and Medium Business Corporation, Korea Exchange, and Korea Credit Guarantee Fund introduced support systems at the briefing session, including ▲ sale and leaseback for liquidity support ▲ policy fund support for business normalization ▲ preparation for listing of excellent stock-in-kind payment companies ▲ customized consulting tailored to corporate needs.

About 20 stock-in-kind payment companies, ranging from small small and medium enterprises to mid-sized companies, participated in the briefing session. Officials listened to the introduction of systems by each institution and had on-site consultation time with program operation managers suitable for their company situations.

Hong Young, Head of the National Property Headquarters at KAMCO, emphasized, “This briefing session was prepared to actively utilize the corporate support program to alleviate burdens such as management difficulties,” and added, “We will continue to support so that stock-in-kind payment becomes an opportunity to enhance corporate value and secure sustainability.”

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