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Cho Yang-rae, Honorary Chairman of Hankook & Company Group. (Photo courtesy of Hankook & Company Group) |
[Alpha Biz= Kim Jisun] The daughter of Cho Yang-rae, honorary chairman of Hankook & Company (formerly Hankook Tire), has won a final legal battle to overturn ₩6.12 billion (approximately $44 million) in gift taxes imposed by Korean tax authorities.
On June 26, the Supreme Court of Korea upheld lower court rulings in favor of Ms. Cho, dismissing the government’s appeal through a non-hearing decision, effectively finalizing the ruling without further deliberation.
The dispute began after a 2018–2019 tax audit during which authorities claimed that 126,620 shares of Hankook Tire purchased by Ms. Cho in 2009 were in fact beneficially owned by her father and held under her name. This triggered the application of Korea’s “nominee trust deemed gift” rule. Authorities also argued that ₩4.5 billion in dividend payments and cash withdrawals from her account were additional unreported gifts.
Ms. Cho asserted that the shares and funds were her own property. Both the trial and appellate courts ruled in her favor, citing insufficient evidence of nominee ownership or disguised gifting. The Supreme Court’s final decision affirms the cancellation of the ₩6.12 billion gift tax, ending the protracted legal dispute.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
