Shinsegae Group chair passes down shares to children

Shinsegae Group Chairwoman Lee Myung-hee. [SHINSEGAE GROUP]

Shinsegae Group Chairwoman Lee Myung-hee, 77, has handed down part of her share in the conglomerate to her children, Shinsegae announced in a regulatory filing Monday.

Lee gave an 8.22 percent stake in Emart to her son Chung Yong-jin, vice chairman of Shinsegae Group, worth around 324.4 billion won ($277.5 million).

She also gave 8.22 percent stake in Shinsegae to her daughter Chung Yoo-kyung, president of Shinsegae Department Store, worth around 168.8 billion won.

Lee's shares in Emart following the revision are reduced to 10 percent, while Chung Yong-jin’s stake in Emart rises to 18.55 percent. Her share in Shinsegae is equally reduced to 10 percent, while Chung Yoo-kyung's stake rises to 18.56 percent.

If a gift exceeds 3 billion won, a 50 percent gift tax is imposed. Gift tax is determined based on the average market price for 120 days — 60 days before and 60 days after the gift is passed down.

“Chairwoman Lee Myung-hee determined responsible management has become more important for the maintenance of the group amid the increasing management uncertainties from Covid-19,” said Shinsegae Group in a statement Monday. Handing down the shares was part of the effort to pre-emptively handle management uncertainties, the conglomerate explained.

Emart controls Shinsegae Food, Shinsegae Chosun Hotel, Shinsegae Property and Emart24, while Shinsegae operates Shinsegae Department Store, Shinsegae International and Shinsegae Duty Free.

BY JIN MIN-JI [jin.minji@joongang.co.kr]