Difficult-to-Handle Stocks Received Instead of Taxes... Possible to Sell by Private Contract to Issuing Corporation

[Asia Economy Reporter Song Seung-seop] The government has introduced a measure to sell unlisted stocks received in lieu of taxes directly to the issuing corporation.

On the 27th, the government approved the "Partial Amendment to the Enforcement Decree of the State Property Act" at the 57th Cabinet meeting. According to the amendment, if stocks paid in kind are evaluated and put up for competitive bidding more than twice but remain unsold, they can be sold directly to the issuing corporation. The price will be separately determined by adding installment payment surcharges and management costs.

Stocks paid in kind refer to shares that those who find it difficult to pay inheritance tax in cash have paid to the state instead. However, since these are unlisted stocks, they have been difficult to liquidate, with an average holding period of about 10 years. The government's shareholding ratio was also only about 10%, so there were few buyers. Due to difficulties in liquidation, there have been many calls to improve the stocks paid in kind system.

Along with this, the state property usage system was reformed to be more user-friendly. The usage fee rate for auxiliary facilities necessary for fisheries was changed to be applied at 1% of the property value, similar to cultivation and livestock farming. The number of installments for usage fee collection was expanded from 6 times a year to 12 times, and the criteria for allowing installment payments of sales proceeds and compensation fees were also relaxed.

Additionally, the cost of appraisal required when selling state property will, in principle, be borne by the state. However, if the direct buyer withdraws the application without justifiable reasons after the appraisal, they will bear the cost.

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