Jeong Yoo-kyung, Chairman of Shinsegae, pledged 460,000 shares of the company as collateral to Korea Securities Finance to borrow 500 billion won for the payment of gift tax.
According to the electronic disclosure system of the Financial Supervisory Service on the 7th, Chairman Jeong noted through a disclosure on the 5th that the collateral agreement period lasts until August 29 next year. The equity pledged to Korea Securities Finance is 4.77%.
Chairman Jeong also provided 500,000 shares, equivalent to 5.18% of his equity, as tax collateral to the Yongsan Tax Office.
Chairman Jeong received a gift of 10.21% equity in Shinsegae from his mother, Lee Myung-hee, in May. With this gift, Chairman Jeong's equity in Shinsegae has increased to 29.15%. It is reported that Chairman Jeong will pay part of the gift tax using the amount borrowed against the pledged shares, and the remaining gift tax will be paid through partitioning.
Partitioning is a system that allows taxpayers to provide collateral and pay inheritance or gift tax in installments when it is burdensome to pay the full amount at once.