“Inheritance Tax Paid with Nexon Holdings Shares Subdues Sale Rumors”

[이코노미스트 이창훈 기자] The bereaved family of Nexon founder Kim Jeong-ju, who passed away in February last year, paid part of the stake in Nexon Holdings to the government as inheritance tax. Payment in kind refers to the payment of inheritance tax imposed on an heir in real estate or securities other than money if certain conditions are met. At one time, there was a prospect that the deceased’s bereaved family would sell the company because they could not pay inheritance tax, which is expected to reach 6 trillion won, but inheritance tax is paid by paying some of the shares to the government. As a result, rumors of a sale of Nexon are expected to subside.

NXC, the holding company of Nexon, announced on the 31st that the Ministry of Strategy and Finance held 852,190 shares (29.3% stake) in February and became the second largest shareholder. NXC said, “The tax authorities legitimately evaluated the inheritance tax report submitted by the heir.” He added, “Even after payment in kind, the same person and related persons will maintain a stake equivalent to about 70% (69.34%), and as the largest shareholder of NXC, the company’s stable management rights are expected to be maintained.”

Director Yoo Jeong-hyeon, spouse of the late founder Kim Jung-ju, and his two daughters had a 98.64% share in NXC, but with this payment, the stake in NXC by the family of founder Kim was reduced to 69.34%.

In the business world, there were many expectations that “as the largest asset among the assets left by founder Kim was his share of NXC, he would pay some of his shares as taxes to pay inheritance tax.”

ⓒThe Economist (“Economic News for Tomorrow” Unauthorized copying and redistribution prohibited)