Public Sale of Unlisted Stocks Worth 339.8 Billion Won Paid Instead of Inheritance Tax

by Moon Chaeseok

Published 08 Nov.2021 14:30(KST)

Public Auction of 66 National Tax Payment Securities Starting from the 22nd

Public Sale of Unlisted Stocks Worth 339.8 Billion Won Paid Instead of Inheritance Tax

[Sejong=Asia Economy Reporter Moon Chaeseok] The government will publicly sell unlisted stocks worth 339.8 billion KRW, which were received as payment instead of inheritance tax.

On the 8th, the Ministry of Economy and Finance announced that it has posted a public competitive bidding notice for the sale of 66 national tax payment securities on the Korea Asset Management Corporation's online public asset disposal system, Onbid. National tax payment securities are securities held by the state that were received as payment for inheritance tax in securities instead of cash.

The estimated sale price for the 66 items was set at 339.8 billion KRW. The highest estimated sale price was for Seohae Comprehensive Construction (47 billion KRW), followed by Raseong Construction (46.3 billion KRW), and Hutech Industry (44.1 billion KRW). The government's average shareholding ratio was calculated at 11.1%.

Starting from the 22nd, public bidding for national tax payment securities will be conducted through Onbid. The first and second rounds of bidding will be conducted at the initial estimated sale price, but from the third round, the price will be reduced by 10 percentage points from the initial estimated sale price. For example, the third round will be at 90% of the estimated price, and the fourth round at 80%. If the bidding fails up to the fourth round, the stocks can be purchased at the reduced price for about one year until the next estimated sale price is determined.

According to the plan to revitalize the sale of payment-in-kind stocks, special public auctions will be conducted up to the sixth round for stocks deemed necessary for prompt sale. To facilitate the smooth sale of national tax payment securities, investment-type sales will also be promoted.

Investment-type sales is a system that allows institutional investors such as venture capital (VC) firms or asset management companies to enter into private contracts at prices evaluated by external accounting firms for high-quality companies among the items that failed in the Onbid public competitive bidding.