Lee Myung-hee, CEO of Shinsegae, announced on the 30th that she will donate 10.21% (980,451 shares) of her holdings in Shinsegae Co., Ltd. to her daughter Chung Yu-kyung, the chairman of Shinsegae. This is the entirety of the equity held by the CEO.
The donation will take place on the 30th of next month. With this donation, Chung Yu-kyung's equity in Shinsegae Co., Ltd. will increase from the current 18.95% to 29.16%.
Shinsegae stated, "The decision to donate was made to solidify independent management and responsible management in each institutional sector."
Over the past 20 years, the CEO has created a structure that divides the affiliates of Emart, managed by her son Chung Yong-jin, and Shinsegae, operated by her daughter Chung Yu-kyung, through sequential donations and exchanges of stocks.
As of the end of last year, Chairmen Chung Yong-jin and Chung Yu-kyung were the largest shareholders, each holding 18.56% of the equity in Emart and Shinsegae Co., Ltd., while the CEO held 10% of the equities in both Emart and Shinsegae Co., Ltd.
However, in February this year, Chung Yong-jin purchased all of the 10% stake in Emart held by the CEO through an off-hours transaction. Once the equity donation in Shinsegae Co., Ltd. is completed, it is expected that the sibling separation work will accelerate.