Government to Resell 1 Trillion Won Worth of NXC Shares Acquired Through Payment in Kind... Koo Yoonchul Says "Contributes to Forex Market Stabilization"

The government has decided to sell back a portion of NXC shares, which it had previously acquired through inheritance tax payment in kind, to the company itself. The government assessed the transaction, which was completed at a higher price than the valuation at the time of payment in kind, as a "meaningful sale that recognized even a management control premium."

The Ministry of Economy and Finance announced on the 11th that it plans to resell some of the NXC shares acquired through payment in kind to NXC for approximately 1.0227 trillion won. The sale price is 5,558,000 won per share, exceeding the valuation of 5,534,000 won per share at the time of payment in kind.

As a result of this transaction, the government's stake in NXC is expected to decrease from the current 30.6% to 25.7% after the buyback and cancellation. NXC will use investment profits from domestic and international subsidiaries to repurchase the shares, and, in accordance with the recent amendment to the Commercial Act, is expected to cancel the entire purchased volume in June.

Deputy Prime Minister and Minister of Economy and Finance Koo Yoonchul stated at a meeting on this day, "We view this positively as the sale was executed at a price higher than the payment in kind valuation," and added, "It was a successful transaction for the government, as it recognized a management control premium."

He also dismissed concerns raised by some about a discounted sale. Deputy Prime Minister Koo emphasized, "The NXC shares were sold at a price higher than the acquisition price through payment in kind," and stressed, "This contributed to securing tax revenue as well as to the stabilization of the foreign exchange market."

Deputy Prime Minister and Minister of Economy and Finance Koo Yoon-cheol is presiding over the Emergency Economic Headquarters Meeting, the Economic Related Ministers Meeting, and the External Economic Ministers Meeting at the Government Seoul Office on the 8th. Ministry of Economy and Finance

The government expects this transaction will also help stabilize the foreign exchange market. It explained that part of the buyback funds will be brought into the country as foreign currency, thereby resulting in an inflow of U.S. dollars.

Until now, the government had pursued various methods to sell off the NXC shares acquired through payment in kind, including public bidding and the selection of lead managers, but faced difficulties in completing a transaction. The government has already reflected 1 trillion won in proceeds from the sale of NXC shares in this year's non-tax revenue budget.

Deputy Prime Minister Koo also mentioned the potential use of a sovereign wealth fund in the future. He said, "The sovereign wealth fund is currently in the process of being legislated, so the sale proceeds cannot be immediately allocated," but added, "Once the law is passed and the fund is established, we will be able to utilize the shares received through payment in kind to maximize national interests."

The government explained that this transaction marks the first sale of assets worth over 30 billion won since the improvement of the government asset sale system in December last year. The decision-making process included deliberation by the National Property Policy Deliberation Committee, a Cabinet meeting, and a report to the National Assembly.

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