CEO Score, Survey on Stock Collateral Status of Large Conglomerate Group Owners
Decrease in Stock Collateral Ratio of Large Conglomerate Owner Families
Samsung Family Down 13.9%p... Lee Jae-yong 42.0%→19.8%
"Stock Sales and Loans Used to Pay Inheritance and Gift Taxes"
Taeyoung Hits Maximum 91.6% Due to Workout Impact
The proportion of stock collateral held by the Samsung owner family has decreased over the past year and a half. This is interpreted as an effect of paying inheritance and gift taxes through stock sales and loans. Taeyoung Group, which entered a corporate restructuring (workout) process, was found to have the highest proportion of stock collateral among owner families.
According to CEO Score, a corporate data research institute, on the 21st, a survey was conducted on the stock collateral status of shareholders in 78 corporate groups with a single controlling shareholder among 88 large business groups designated by the Fair Trade Commission. As of the 9th, the proportion of stock collateral held by owner families was 24.8%. This is a decrease of 4.3 percentage points from 29.1% at the end of 2022.
Among these, the proportion of collateral loans increased by 4.1 percentage points from 11.6% to 15.7% over the past year and a half, while the proportion of tax payment collateral decreased by 8.0 percentage points from 15.8% to 7.8%. The proportion of collateral provision also decreased by 0.4 percentage points from 1.7% to 1.3%. This is interpreted as the owner families paying inheritance and gift taxes through stock sales and loans.
The proportion of collateral for the Samsung owner family also decreased by 13.9 percentage points from 48.1% to 34.2%. Over the past year and a half, the proportion of collateral loans increased by 8.4 percentage points, while the proportion of tax payment collateral decreased by 22.4 percentage points.
The Samsung owner family paid inheritance taxes through collateral loans and stock disposals. Lee Boo-jin, President of Hotel Shilla, saw her tax payment collateral decrease by 25.6 percentage points, reducing her collateral proportion from 65.5% at the end of 2022 to 40.9% this month, a decrease of 24.6 percentage points.
Lee Jae-yong, Chairman of Samsung Electronics, also saw his tax payment collateral decrease by 22.2 percentage points, lowering his collateral proportion from 42.0% to 19.8%, a decrease of 22.2 percentage points. Lee Seo-hyun, President in charge of strategic planning at Samsung C&T, also reduced her tax payment collateral from 44.4% to 21.4%, a decrease of 23.0 percentage points, and her collateral proportion decreased from 56.3% to 42.6%, a decrease of 13.7 percentage points.
In the case of Hong Ra-hee, former director of the Samsung Museum of Art Leeum, her collateral proportion increased by 12.3 percentage points from 38.6% at the end of 2022 to 50.9% this month. The proportion of collateral loans increased by 32.2 percentage points from 18.7% to 50.9%, while tax payment collateral decreased from 19.9% to 0%.
The stock collateral proportion of owner families such as KG and Shinsegae also decreased by more than 10 percentage points. The KG Group owner family's collateral proportion shrank from 19.2% at the end of 2022 to 0% this month. Chairman Kwak Jae-sun, President Kwak Jung-hyun, and Vice President Kwak Hye-eun have all resolved their collateral stocks. Chairman Kwak resolved the collateral provision to Vice President Kwak and related parties, and President Kwak and Vice President Kwak fully repaid their loan collateral.
On the other hand, the owner family with the highest proportion of stock collateral was Taeyoung. The Taeyoung owner family's stock collateral proportion was 0% at the end of 2022 but rose to 91.6% this month, the largest increase among the surveyed corporate groups.
The Taeyoung Group owner family has set 91.6% of the shares held as collateral to Taeyoung Construction, which entered a workout. In fact, Taeyoung has collateralized Chairman Yoon Seok-min's TY Holdings shares (12,827,810 shares), founder Chairman Yoon Se-young's shares (266,955 shares), and SBS shares (5,566,017 shares) held by TY Holdings as a condition for new funding support from creditors.
Next, IS Holdings ranked second. The IS Holdings owner family’s stock collateral proportion was 69.9% at the end of 2022 but increased by 12.8 percentage points to 82.7% this month.
Third place was Lotte. The Lotte owner family’s stock collateral proportion rose from 49.9% at the end of 2022 to 81.7% this month, an increase of 31.8 percentage points. Shin Dong-bin, Chairman of Lotte Group, saw his collateral proportion increase from 57.7% to 80.9%, a rise of 23.2 percentage points. Among this, the proportion of collateral loans increased by 22.6 percentage points from 43.6% to 66.2%, and the loan amount increased by 22.7 billion KRW from 213.2 billion KRW to 235.9 billion KRW.
In the case of Shin Young-ja, Chairwoman of the Lotte Foundation, her stock collateral proportion increased by 66.3 percentage points from 25.1% at the end of 2022 to 91.4% this month. The proportion of collateral loans increased from 0% to 91.4%, and the loan amount expanded from 0 KRW to 74.5 billion KRW.
However, the proportion of tax payment collateral decreased from 25.1% to 0%. After the death of the late honorary chairman and Lotte Group founder Shin Kyuk-ho, Chairwoman Shin sold shares in Lotte Shopping, Lotte Holdings, and Lotte Wellfood consecutively in June to prepare for inheritance tax. The disposal scale of shares held in the three companies is known to be about 67 billion KRW.
In addition, there are a total of 13 places where the owner family’s stock collateral proportion exceeds 50%, including Kumho Petrochemical (58.8%), DB (58.2%), Hanwha (55.5%), Hanjin (54.8%), DN (52.8%), SK (52.7%), Paradise (52.6%), Hansol (52.5%), HD Hyundai (52.4%), and Kolon (52.1%).
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
