Large Conglomerate Owner Families Sell 5 Trillion Won in Stocks in 1.5 Years... Samsung Family's Three Women Dispose of 3.3 Trillion Won

CEO Score Investigates 71 Large Corporations
5.0067 Trillion KRW in Stock Disposals from Jan Last Year to Jun This Year
Samsung Family's Three Women Sold 3.3157 Trillion KRW in Shares
Measures for Inheritance Tax Payment... Installment Payment Over 5 Years
Jung Ji-seon of Hyundai Department Store and Cho Hyun-sang of HS Hyosung Also Disposed Shares

It has been revealed that the owner families of major conglomerates in South Korea have sold over 5 trillion won worth of affiliate stocks in the past year and a half. Among them, the three Samsung family women sold approximately 3.3 trillion won worth of stocks, accounting for more than 66% of the total stock sales, to pay inheritance taxes.

According to CEO Score, a corporate data research institute, on the 17th, an investigation into the acquisition and disposal status of affiliate stocks by owner families of 71 conglomerates with a controlling shareholder found that from January last year to June this year, the total stock disposal amounted to 5.0067 trillion won.

The largest stock seller was the Samsung family. The three women?Hong Ra-hee, former director of the Samsung Museum of Art Leeum; Lee Boo-jin, president of Hotel Shilla; and Lee Seo-hyun, president of Samsung C&T’s strategic planning division?sold a total of 3.3157 trillion won worth of shares.

Former director Hong sold Samsung Electronics shares worth 1.4052 trillion won. President Lee Boo-jin disposed of shares totaling 1.15 trillion won, including 615.9 billion won in Samsung Electronics, 246.5 billion won in Samsung SDS, 144.8 billion won in Samsung C&T, and 142.8 billion won in Samsung Life Insurance. President Lee Seo-hyun also sold affiliate stocks, including 589.3 billion won in Samsung Electronics and 171.3 billion won in Samsung SDS, securing a total of 760.6 billion won.

This is interpreted as a measure to alleviate the enormous inheritance tax burden. Since the passing of the late Chairman Lee Kun-hee in 2020, the Samsung family has been paying approximately 12 trillion won in inheritance taxes in installments over five years starting from April 2021, utilizing the installment payment system. However, Samsung Electronics Chairman Lee Jae-yong is reported not to have sold a single share.

The next largest stock seller after the Samsung family was the Hyundai Department Store Group. Chung Ji-sun, chairman of Hyundai Department Store Group, sold 180.9 billion won worth of Hyundai Department Store shares while pushing for a transition to a holding company.

Vice Chairman Cho Hyun-sang of HS Hyosung also sold stocks worth 135.9 billion won. As Hyosung Group, which is undergoing affiliate separation among siblings, spun off its holding company, Vice Chairman Cho appears to have sold his shares in Hyosung Heavy Industries. Following them were Chung Kyo-sun, vice chairman of Hyundai Department Store Group (11.7 billion won), Jang Se-ju, chairman of Dongkuk Steel Group (93.8 billion won), Yoon Seok-min, chairman of Taeyoung Group (77.6 billion won), Choi Sung-hwan, president of SK Networks Business Division (72 billion won), and Shin Young-ja, chairwoman of the Lotte Foundation (67.6 billion won).

On the other hand, the amount of stocks acquired by major conglomerate owner families exceeded 1 trillion won. About 60% of this was secured by Hyundai Department Store Group (322.2 billion won), OCI Group (193.8 billion won), and Dongkuk Steel Group (181.8 billion won). These three groups have been accelerating governance restructuring such as transitioning to holding company systems and affiliate separation, resulting in large stock acquisitions through rights offerings and tender offers.

There were also inheritance and gifts among major conglomerate owner families. Over the past year and a half, the total value of inherited and gifted shares amounted to 1.2134 trillion won. The owner family with the largest amount of inherited and gifted stocks was Hyosung Group. Shares in five affiliates, including Hyosung and Hyosung Heavy Industries, worth 788 billion won, previously owned by the late honorary chairman Cho Seok-rae, were inherited by his eldest son, Chairman Cho Hyun-joon (613.5 billion won), and third son, Vice Chairman Cho Hyun-sang (174.5 billion won), respectively. The Hansol Group, preparing for third-generation succession, was next. Hansol Group Chairman Cho Dong-hyuk entrusted 78.7 billion won worth of Hansol Chemical shares to his eldest daughter, Vice Chairman Cho Yeon-ju of Hansol Chemical.

Amorepacific Group Chairman Seo Kyung-bae gifted Amorepacific Group shares worth 63.1 billion won to his second daughter, Seo Ho-jung, and Chairman Chung Ji-sun distributed 52.4 billion won worth of Hyundai Green Food shares among his wife, children, and nephews. Honorary Chairman of GS Group and GS Construction Chairman Huh Chang-soo gifted GS Construction shares worth 31.1 billion won to his son, GS Construction President Huh Yoon-hong.