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.