Minors of conglomerates' owner families hold over 100 billion won (US$85.88 million) worth of stocks in affiliate companies, a report provided Monday by the Fair Trade Commission showed, a business practice that is legal but denounced nonetheless as a means of dodging taxes and retaining management control.
According to the report submitted to the parliamentary committee on finance, 43 underage family members at 16 large business groups held stocks in 37 affiliates as of April 1 this year. The value of their stockholdings, measured on Nov. 8, totaled 101.9 billion won, averaging out to 2.37 billion won per minor.
In April, there were 65 business groups categorized as "large," with 45 of them having the owner family as chiefs.
Doosan Group had seven minor age shareholders, the most among the conglomerates, who claimed 3.1 billion won in listed subsidiaries. GS had five underage stake owners holding 73.7 billion won worth of stocks in listed affiliates.
At LS Group, three minors held 3.3 billion won worth of stocks.
In the KCC's case, one minor owned stock valued at 11 billion won.
Other conglomerates in the list included Dongkuk Steel, Daelim, Lotte, SeAH, CJ, OCI, Jungheung Construction, TK Corp., Harim, Hankook Tire, Hyundai Development and Hyosung. (Yonhap)
