Shinsegae’s heiress likely to use $6 mil dividend income to pay tax bill Increased dividends will help Chung Yoo-kyung fund gift tax payment
Translated by Ryu Ho-joung 공개 2022-02-11 08:15:51
이 기사는 2022년 02월 11일 08:04 thebell 에 표출된 기사입니다.
Shinsegae Group’s heiress Chung Yoo-kyung is set to pocket about 7.1 billion won ($5.9 million) in dividend income, which will help her fund the annual installment payment on a 104.5 billion won gift tax bill.Shinsegae Inc and Shinsegae International earlier this week announced a final cash dividend of 3,000 won per share and 1,500 won per share for 2021 respectively.
Dividend yields as of the end of December 2021 stand at 1.21% and 1.02%, respectively, up 0.61 percentage points and 0.32 percentage points from the year before.
Chung, Shinsegae Inc’s president, is expected to collect 5.5 billion won from Shinsegae Inc and 1.6 billion won from Shinsegae International in dividends, with a total of 7.1 billion won almost doubling from 4 billion won that she received in the prior year.
The increased dividend income will help Chung pay gift tax. In 2020, her mother and Shinsegae Group chairwoman, Lee Myung-hee, gifted to Chung 859,668 shares in Shinsegae Inc worth 170 billion won, which triggered a tax liability of 104.5 billion won.
Chung decided to settle the bill in equal annual installments over five years, with 500,000 shares in Shinsegae Inc parked with a tax office as collateral.
Many expected Chung to sell some of her shares in Shinsegae International to pay the tax bill as she did in 2018 when her father and Shinsegae Group’s honorary chairman, Chung Jae-eun, gifted to her 1.5 million shares in the fashion company.
However, she opted to take out a 40 billion won loan by pledging 300,000 shares in Shinsegae Inc as collateral to pay the second installment last year.
Chung took a loan instead of selling shares because of a decline in the price of Shinsegae International shares, which recently traded at around 140,000 won apiece, down 40% from the average level in 2019.
The falling share price means Chung needs to sell more shares to raise the money needed to pay the tax, which as a result would weaken her control of the fashion company.
Fortunately for Chung, Shinsegae Inc and Shinsegae International significantly raised their dividends for the past fiscal year thanks to strong earnings results.
In 2021, Shinsegae Inc generated a record operating profit of 517 billion won on consolidated revenue of 6.3 trillion won, up 32% year-on-year. Shinsegae International’s revenue rose 9.5% to 1.45 trillion won, the largest in the company’s history.
“As announced last year, we planned to pay the greater of 10% of operating profits or 1,500 won per share in dividend, and the strongest-ever operating profits enabled us to raise dividend to 3,000 won per share for 2021,” an official at Shinsegae Inc said, adding that the company intended to continue to increase shareholder returns. (Reporting by Geul-ah Bang)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재, 재배포 및 AI학습 이용 금지 >
관련기사
best clicks
최신뉴스 in 전체기사
-
- '재무개선' AJ네트웍스, 조달비용 '확' 낮췄다
- '9년만에 엑시트' 한앤코, 한온시스템 거래구조 살펴보니
- 한국타이어앤테크놀로지, 한온시스템 인수한다
- [수술대 오른 커넥트웨이브]2대주주 지분매입 나선 MBK, 주식교환 카드 꺼냈다
- [이사회 모니터]이재용 에이비프로바이오 대표, 바이오·반도체 신사업 '드라이브'
- 와이투솔루션, 주인 바뀌어도 '신약' 중심엔 美 합작사 '룩사'
- 아이티센, 부산디지털자산거래소 본격 출범
- 아이에스시, AI·데이터센터 수주 증가에 '날개'
- [이사회 모니터]서정학 IBK증권 대표, ESG위원회도 참여 '영향력 확대'
- SW클라우드 '10주년' 폴라리스오피스, “초격차 밸류업”