November 22, 2024

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(Nexon)

The family of Nexon's late founder, Kim Jung-ju, has sold a significant portion of their shares in the company's holding firm, NXC, to help cover the hefty inheritance taxes following his death.

On Monday, NXC announced it had bought back shares from Kim’s widow, Yoo Jeong-hyun, who chairs NXC’s board, and their two children. The family sold a total of 125,288 shares -- 649.9 billion won's worth (approximately $488 million). Additionally, NXC purchased 3,122 shares in Wisekids, a software company partly owned by the children, for 16.1 billion won. Altogether, the family’s stake was sold for about 666.2 billion won. NXC described this move as a way to enhance shareholder value.

After Kim passed away in February 2022, his family inherited around 10 trillion won. Given South Korea’s steep inheritance tax, which can go up to 60 percent for the largest fortunes, the family faced a tax bill of about 6 trillion won. To manage this, they opted to pay a large chunk of the tax -- 4.7 trillion won -- by transferring nearly 30 percent of NXC’s shares to the government last year. Unfortunately, attempts to auction off this stake have failed due to high reserve prices.

NXC’s recent buyback helps the family cover their remaining tax obligations while also aiming to stabilize the company’s management. The company noted that the share sale would "help accelerate the payment of the remaining inheritance taxes."

The exact amount the family still owes has not been disclosed.

By Moon Joon-hyun (mjh@heraldcorp.com)