Shinsegae Group chair passes down shares to children

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Shinsegae Group chair passes down shares to children

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

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.

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