Loans Surge at Youngpoong, Taeyoung, and Shinsegae
Samsung Owner Family Tops in Loan Amount
The stock-backed loans of owner families in major domestic conglomerates increased by nearly 1.5 trillion won in eight months.
On the 26th, Leaders Index, a corporate analysis research institute, surveyed the stock-backed loan status of owner families in 79 groups with heads out of 88 major conglomerates as of the 20th. It was found that at least one member in 42 groups had taken out loans using their shares as collateral.
Among 588 owner family members, 164 borrowed a total of 9.3747 trillion won. The number of owner family members who took stock-backed loans increased by 43 from 121 in June last year.
During the same period, the total amount of collateral loans increased by 1.4597 trillion won from 7.915 trillion won, and the collateral ratio rose from 40.7% to 65.9%.
The reasons owner families provide stocks as collateral include raising operating funds, securing succession funds, and paying inheritance taxes.
Major shareholders can maintain voting rights even when setting stocks as collateral, so it does not affect the exercise of management rights.
However, if the stock price falls below the collateral setting price, a forced sale may occur, which could further depress the stock price. In severe cases, management rights may also be threatened.
This year, the group with the largest increase in loan amount was Youngpoong. Leaders Index interpreted this as a measure related to securing funds amid the management dispute over Korea Zinc.
The Youngpoong owner family, including joint names, borrowed a total of 489.5 billion won, with a collateral ratio reaching 86.2%.
Taeyoung Group and Shinsegae Group newly generated loans this year and ranked high.
In Taeyoung's case, Chairman Yoon Seok-min and his father, founder Yoon Se-young, jointly took out a loan of 400 billion won using collateral.
In Shinsegae, Chairman Chung Yong-jin borrowed 215.8 billion won by pledging 65% of his 7,960,493 shares as collateral. This is presumed to be funds for purchasing shares of E-Mart.
The group with the largest loan amount is Samsung. Former director of Samsung Museum Leeum Hong Ra-hee, Hotel Shilla President Lee Boo-jin, and Samsung C&T strategic planning officer Lee Seo-hyun have taken stock-backed loans.
The total loan amount of the three women reached 3.2728 trillion won, an increase of 340 billion won from the previous year.
Former director Hong took out a loan of 2.12 trillion won by pledging more than half of her 99,787,277 shares, specifically 51,801,809 shares (51.9%), ranking first in individual collateral loans. This increased by 340 billion won from 1.78 trillion won the previous year.
Meanwhile, President Lee Boo-jin and Lee Seo-hyun maintained their loan amounts at 580 billion won and 578.2 billion won respectively, with no changes.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
