To preserve the value of national tax payment securities held through taxes, the government is expanding the activities of the trustee, Korea Asset Management Corporation (KAMCO). If evidence of embezzlement, breach of trust, or undue self-interest that damages corporate value is identified, legal actions, including the replacement of management, will also be pursued. The government plans to actively exercise its voting rights by reorganizing the minimum dividend requirements for payment companies and linking management performance to executive compensation limits.
According to the Ministry of Economy and Finance on the 12th, currently, payment of inheritance tax through the payment system is only possible with unlisted shares. Listed shares that are tradable in the market are not subject to payment.
If certain conditions under the Inheritance and Gift Tax Act are met, taxpayers can pay inheritance tax with unlisted shares instead. The shares paid in this way will be owned by the government. However, the shares purchased in this manner are mostly illiquid, and the government's equity stake is low, which significantly limits shareholder rights. An official from the Ministry of Economy and Finance noted, "Corporations in which the government holds less than a 25% equity stake account for 85.4% of all payment corporations," adding, "The government's equity stake is mostly insufficient to affect management rights."
Therefore, the government has established a principle of selling the paid-in shares as quickly as possible at a fair price rather than holding onto them for the long term. Since the principle is rapid sale, it also intends not to interfere in corporate management.
However, the government believes that the situation should be viewed differently if the corporate value is damaged due to embezzlement or breach of trust by major shareholders or self-interest by the board of directors. When corporate value is compromised, the value of national tax payment securities declines, which directly impacts tax revenue.
To prevent such issues, the government plans to recommend executives in corporations where corporate value has been impaired, in an effort to enhance shareholder value. However, considering the low government equity stake, there is a limitation in that very few corporations can have executives appointed solely by the government.
Even if the replacement of management, such as recommending executives, is restricted, the government plans to actively pursue legal measures to exercise its rights as a shareholder. In fact, when KAMCO attempted to sell core buildings essential to the management of a payment company, it expressed "opposition" and exercised its "right of appraisal." Although legal disputes arose during the process, it successfully sold the shares by winning the final ruling in the Supreme Court.
Additionally, after the CEO of the payment company used company funds and recorded it as an accounting loss, KAMCO filed a lawsuit for damages and won. The debt recovery process for that CEO is currently underway.
An official from the Ministry of Economy and Finance stated, "It is also the government's responsibility to ensure that the value of the shares is not compromised during the sale of paid-in shares," adding, "We will establish standards for the government to exercise voting rights regarding payment companies, set minimum dividend requirements, and establish limits on executive compensation."