[THE INVESTOR] Lotte Group Founder Shin Kyuk-ho has sold off his entire 3.44 percent stake in Daelim Industrial worth 91.3 billion won (US$101.94 million), according to industry sources on Aug. 9.
The founder of the Korean retail giant has been holding Daelim lndustrial’s shares since 1980, through Lovest, a paper company he established in Switzerland.
On Aug. 7, the 91-year-old Lotte Group founder started checking demand for his 1.21 million shares of Daelim Industrial in an after-hours block deal. The deal was closed at 75,012 won per share, which was 6 percent cheaper than its closing price on Aug. 8.
The stake sale will reportedly fund the inheritance and gift taxes that his son Shin Dong-joo paid on his behalf last year. In 2016, the Lotte Group founder was accused of transferring his shares in Japan-based Lotte Holdings to family members to help the recipients evade about 70 billion won in gift taxes. The government ordered him to pay 212.6 billion won.
Moreover, according to sources, the decision to sell his stake was made by The Sun, a nonprofit affiliate of a law firm led by former Seoul High Court head Lee Tae-woon, which is his appointed guardian.
By Song Seung-hyun (firstname.lastname@example.org)