Minister Nominee Hansung Sook to Exercise Naver Stock Options Worth 15 Billion KRW

All Shares to Be Sold Upon Taking Office... Expected Profit of 3.9 Billion KRW
No Plans to Exercise 40,000 Stock Options

Hansung Sook, former CEO of Naver and nominee for Minister of SMEs and Startups, has decided to exercise 60,000 stock options granted by Naver and to sell all of her shares, including her existing holdings, upon taking office. The total number of shares to be sold is 68,934, amounting to approximately 17.3 billion KRW.

According to government sources on July 4, Hansung Sook recently submitted an application to Naver to exercise 60,000 stock options. These options were granted in 2019 (20,000 shares at an exercise price of 131,000 KRW) and in 2020 (40,000 shares at 186,000 KRW), and are scheduled to be deposited under her name on July 10. As of 9:40 a.m. on this day, the value of these shares is approximately 15 billion KRW.

Hansung Sook, nominee for Minister of SMEs and Startups, is arriving at the confirmation hearing preparation office set up at Samhee Excon Venture Tower in Yeouido, Yeongdeungpo-gu, Seoul, on the 24th of last month, expressing her thoughts. Photo by Yoon Dongjoo

After deducting the exercise price and taxes, Hansung Sook is expected to realize a capital gain of about 3.9 billion KRW. She has decided not to exercise the remaining 40,000 stock options granted in 2021 (with an exercise price of 384,500 KRW), as the current Naver share price (251,000 KRW) is lower, raising concerns about a potential loss.

In addition to the stock options, Hansung Sook also plans to sell all 8,934 Naver shares she currently holds if appointed as Minister. Upon her appointment, she will sell a total of 68,934 shares, including the 60,000 shares from exercised stock options and her existing 8,934 shares. Based on the current market price, this amounts to approximately 17.3 billion KRW.

This measure is in accordance with the Public Service Ethics Act, which aims to prevent conflicts of interest for high-ranking public officials. If the value of stocks held by a high-ranking official and their related parties exceeds 30 million KRW, they are required to sell or blind trust the shares within two months of taking office.

Hansung Sook joined Naver in 2007, served as CEO from 2017 to 2022, and is currently an advisor to the company. Her confirmation hearing is scheduled to be held on July 15 by the National Assembly's Trade, Industry, Energy, SMEs and Startups Committee.