Korean-tycoons-taking-advantage-of-falling-share-prices
CJ Group Chairman Lee Jae-hyun is expected to save about $80 million as he rearranged the donation timing of CJ shares to his two siblings amid the bearish stock market. Photo courtesy of CJ Group

The plunging share prices amid the virus threat deal a severe blow to investors. But some South Korean businesspeople take advantage of the bearish market.

According to the Financial Supervisory Services Wednesday, CJ Group Chairman Lee Jae-hyun canceled his donation of 1.8 million CJ Corp shares to his son and daughter Monday.

A day later, the 60-year tycoon donated the same amount of shares to the two siblings, a maneuver that seems to be designed to reduce tax burdens.

The share prices of CJ Corp, the holding company of CJ Group, neared $70 last December when the shares were first given.

But the values more than halved to around $30 in late March due to the spread of the novel COVID-19 coronavirus across the world.

Observers expect that Chairman Lee will be able to save around $80 million in tax burdens.

CJ Group is the country’s fast-growing conglomerate. Chairman Lee is a grandson of Samsung founder Lee Byung-chull and cousin of Samsung’s de facto chief Lee Jae-yong.

Other tycoons decide to snap up shares of their companies to raise their stakes at minimal costs.

Lotte Group said last month that Chairman Shin Dong-bin purchased 47,400 shares of its affiliates. Lotte is the country’s fifth-largest conglomerate.

Woori Financial Group Chairman Sohn Tae-seung and senior executives also gobbled up more than 10,000 shares of the banking group last month.

 

This article is provided by UPI News Korea. _ ED.