Vice Chairman Jeong Yong-jin Sells Entire Stake in Gwangju Shinsegae... Secures Funds for Gift Tax (Update)

[Image source=Yonhap News]

[Asia Economy Reporter Jo In-kyung] Chung Yong-jin, Vice Chairman of Shinsegae Group, transferred all his shares of Gwangju Shinsegae to Shinsegae to secure funds for gift tax payment, obtaining 228.5 billion KRW in cash.

On the 14th, Shinsegae announced through a public disclosure that it acquired 833,330 shares of Gwangju Shinsegae at 274,200 KRW per share on the stock market.

This corresponds to 52.08% of the total shares of Gwangju Shinsegae, representing all the shares held by Vice Chairman Chung. As a result of this sale, Vice Chairman Chung no longer holds any shares of Gwangju Shinsegae.

On the other hand, Shinsegae increased its stake in Gwangju Shinsegae from the previous 10.42% to 62.5%, becoming the largest shareholder.

The Shinsegae Group explained the reason for Vice Chairman Chung's share sale as "to secure funds for gift tax payment and to simplify the governance structure." Previously, Vice Chairman Chung received an 8.22% stake in E-Mart from Lee Myung-hee, Chairwoman of Shinsegae Group, and must pay approximately 191.7 billion KRW in gift tax.

Shinsegae also stated that the reason for acquiring the shares was "to strengthen control over Gwangju Shinsegae and simplify the governance structure, while expecting financial structure improvement effects through consolidated accounting inclusion."

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