Sung Young-chul (Genexine)
Biotech company Genexine’s CEO Sung Young-chul on Tuesday gifted his stocks worth 8.2 billion won ($6.9 million) to his two daughters, sons-in-law and wife.
Genexine, which is listed on the secondary bourse Kosdaq, filed a disclosure on Friday about the transfer of stocks, but it was belatedly reported that his daughters were the beneficiaries.
Sung has in the past gifted his stocks to academic associations, hospital and universities on several occasions, but this is the first time he has given company assets to family members since Genexine made its initial public offering.
He gave 30,000 shares each to his wife Lee Ok-hee, daughters Sung Jessica and Sung Ji-yoon, as well as their husbands Kim Dae-ok and Oh Gwang-sik.
After this, Sung’s personal stake in the company has declined to 6.78 percent from 7.41 percent.
Sung, his family and specially related persons hold a combined 9.9 percent stake in Genexine.
Since the stocks at the time of bestowal cost 82 billion won, his wife must pay 300 million won in gift tax, while the two daughters and sons-in-laws have to shell out 500 million won each.
Industry sources said it’s unlikely Sung would give managerial positions to his daughters, but that this could have been a tactical decision to give assets to his family when the share price is relatively low.
By Lim Jeong-yeo (firstname.lastname@example.org)