The total value of stock-backed loans held by the owner families of major domestic conglomerate groups has decreased by more than 2 trillion won over the past year.
However, this decline is primarily attributed to the conclusion of inheritance tax installment payments by the Samsung family. Excluding Samsung, the total amount of stock-backed loans actually increased.
According to a survey released today (June 30) by corporate analysis firm Leaders Index, which examined 117 members of owner families from 24 comparable groups out of 42 conglomerate groups with designated heads among the top 50, the total stock-backed loans stood at 7.6688 trillion won as of June 25.
This represents a 23.6 percent (2.3752 trillion won) decrease from the 10.044 trillion won borrowed by 124 family members in June of last year.
By group, 11 out of the 24 groups saw an increase in loan amounts, while 11 saw a decrease. Hyundai Department Store and Daou Kiwoom remained unchanged.
The reduction in the overall loan volume was driven by the Samsung family, as the three women of the family reduced their stock-backed loans by 2.584 trillion won compared to last year.
They had been using large-scale stock-backed loans to pay inheritance taxes on shares inherited from the late Chairman Lee Kun-hee. The installment payment plan, which began in 2021 and was scheduled over six installments, concluded this past April.
As a result, the loan balance for Hong Ra-hee, former director of Leeum Museum of Art, decreased from 3.48 trillion won to 1.855 trillion won. Hotel Shilla CEO Lee Boo-jin saw her loans drop from 1.104 trillion won to 460 billion won, and Lee Seo-hyun, head of strategic planning at Samsung C&T, saw hers fall from 1.0728 trillion won to 757.8 billion won.
Excluding the Samsung family, the total loan amount for the remaining 23 groups actually increased by 4.8 percent, from 4.3872 trillion won to 4.596 trillion won, over the same period.
However, the burden of collateral has generally eased due to a significant rise in stock prices.
The value of shares held by the family members who took out loans increased by 149.0 percent, from 44.7221 trillion won to 111.3613 trillion won. The value of the pledged shares also rose by 71.9 percent, from 21.3887 trillion won to 36.7693 trillion won.
Conversely, the number of shares provided as collateral decreased by 37.0 percent, from 301,258,455 shares to 189,736,131 shares.
Consequently, the loan-to-collateral value ratio fell by 26.1 percentage points, from 47.0 percent to 20.9 percent.
Young Poong Group saw the largest increase in stock-backed loans. The loan amount for the Young Poong owner family rose by 56.4 percent, from 479.5 billion won last year to 749.8 billion won this year.
This is interpreted as the result of continued demand for funds by the Choi family, amid the ongoing management dispute at Korea Zinc.
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