Late Kim Jung-ju's Nexon Shares Inherited by Family

Over 10 Trillion Won in Scale... Inheritance Tax Expected to Reach 6 Trillion Won
Likely to Obtain Yen Stock-Backed Loan in Japan

[Asia Economy Reporter Seungjin Lee] Nexon, which lost its founder the late Kim Jung-ju, will maintain a professional management system. Although there was speculation about the possibility of selling the founder's shares due to the enormous inheritance tax issue, it is expected that the shares will be inherited by the family, including the spouse and children.

According to the industry on the 1st, Yoo Jung-hyun, auditor of NXC and spouse of the Nexon founder, is reportedly reviewing various measures to prepare for the inheritance tax. The existing management system will be maintained, and there are no plans to sell Nexon or its affiliates.

Nexon is controlled by the unlisted holding company NXC, which governs the entire group. NXC controls Nexon Japan, and Nexon Japan holds 100% of Nexon Korea's shares. As of the end of last year, the holding company NXC's shares were 67.49% owned by the founder Kim, 29.43% by spouse auditor Yoo Jung-hyun, 0.68% each by two daughters, and 1.72% by a family-owned private company (Wise Kids), meaning the founder's family owns 100% of the shares.

It is known that the founder's shares will be fully inherited by the family. The issue is the inheritance tax. Nexon's market capitalization is about 23.78 trillion KRW, and when combining the founder's Nexon share value and other assets, it is estimated to exceed 10 trillion KRW. High-value asset inheritance is subject to a basic inheritance tax rate of 50%, with up to 65% applied considering the major shareholder surcharge. Applying this, the tax alone is expected to reach 6 trillion KRW. Because of this, some speculated that Nexon or its affiliates might be put up for sale.

However, the industry expects that considering Nexon is a listed company in Japan, where a zero interest rate policy is maintained, the inheritance tax will be prepared by taking out yen-denominated stock-backed loans. Generally, inheritance tax must be reported and paid by the end of the month six months after the inheritance commencement date. With the founder passing away on March 1, the bereaved family must file inheritance-related reports within two months, so such a plan is expected to be announced. Even if auditor Yoo inherits the founder's shares, it is unlikely she will take part in management. The founder declared during his lifetime that he would not pass on company management rights to his children and established a professional management system.

Regarding this, Nexon stated, "No finalized inheritance plan has been made yet," and "We understand that various measures are being reviewed to prepare for the inheritance tax."

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