To Save Taxes and Strengthen Control
Owners of major companies are giving more shares and increasing stock repurchase after the recent plunge of the stock market. The purpose is to save taxes and prop up their stock prices and control.
SPC Samlip announced on April 8 that its chairman Hur Young-in gave 400,000 shares to his eldest son and vice president Hur Jin-soo. The value of the shares is 26.5 billion won. CJ Group chairman Lee Jay-hyun canceled the Dec. 9 donation of 1,841,336 preferred stocks to CJ CheilJedang manager Lee Sun-ho and CJ ENM managing director Lee Kyenog-hoo for re-donation. The size of the donation has been reduced from 120.4 billion won to 76 billion won.
In the meantime, a total of 358 listed companies reported stock repurchase in the first quarter of this year. Hyundai Motor Group executive vice chairman Chung Eui-sun bought 581,333 Hyundai Motor Company shares worth more than 40.5 billion won and 303,759 Hyundai Mobis shares worth 41.1 billion won from March 23 to 27. His share in the two companies rose from 1.81 percent to 2.02 percent and from 0 percent to 0.32 percent, respectively.
GS Caltex president Hur Sae-hong, who is GS Caltex chairman Hur Dong-soo’s eldest son, bought 441,110 GS shares worth approximately 19 billion won in February and March. GS Energy senior managing director Hur Seo-hong, who is the eldest son of Samyang International chairman Hur Kwang-soo, bought 79,100 GS shares during the same period. Their shares in the company rose to 2.28 percent and 1.81 percent, respectively.
Likewise, Shinsegae Department Store president Chung Yoo-kyung bought 50,000 Shinsegae shares by investing 13.7 billion won from Jan. 31 to Feb. 1. Her share rose from 9.83 percent to 10.34 percent.