Late Nexon founder's daughters pay inheritance tax in equity

Nexon Korea's headquarters in Seongnam, Gyeonggi [NEWS1]

The two daughters of Nexon founder Kim Jung-ju paid their inheritance tax in the form of equity, selling a 29.3 percent stake in NXC to Korea's Ministry of Economy and Finance.

NXC and its affiliated investment unit NXMH B.V. owns a combined 46 percent of Nexon.

NXC's largest shareholder is Kim's wife Yoo Jung-hyun, who has a 34 percent stake in the company.

Kim, who founded Nexon in 1994, died in Hawaii in February 2022. At the time of his death, Kim owned 67.49 percent of NXC shares.

The remaining family members were reported to have inherited some 10 trillion won ($7.54 billion) of assets and nearly 2 million shares of NXC. Their estimated inheritance tax was some 6 trillion won.

Kim’s three family members — two daughters and his wife Yoo — inherited a total of 1.96 million shares of NXC, last September. Yoo, who already possessed a 29.43 percent stake before the inheritance, became the largest shareholder of NXC with a 34 percent stake. The two daughters, who had a 0.68 percent stake, each inherited 895,305 shares to increase their individual stakes to 31.46 percent.

By giving up a chunk of their shares to the ministry, the two daughters now each have a 16.81 percent stake. Yoo will retain her 34 percent stake.

Yoo, who was an auditor of NXC, was appointed as a director of the NXC board in a general shareholders meeting in March. The voting rights of the two daughters’ stock were delegated to Yoo as well.

“The tax authorities evaluated the value of the reported inheritance and the heirs paid the taxes accordingly in the form of NXC stock,” said an NXC spokesperson.

“After the payment, the company’s management will remain stable as Yoo and other family members still have a nearly 70 percent stake in the company.”

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]