Thank you for the e-mail.
We are aware that J&J is interested in purchasing 100% of DMOs’ shares. Under Korean law, DMO is classified as an SME which allows DMO to benefit from a special tax benefit open to SMEs. We understand that J&J is wondering if such tax benefits can be continued after acquiring DMO shares.
The tax benefit law in question requires SMEs to meet certain qualifications in order to benefit from it. A couple of these requirements include having annual sales no bigger than KRW 80 billion, and also having total asset values that do not exceed KRW 500 billion. On top of that, Korean tax law states that if the total asset size of a SME shareholder that has over 30% of the shares exceeds KRW 500 billion, the company can no longer be qualified as an SME.
As the total size J&J’s assets amount to KRW 1.3trillion, J&J does not qualify for the given requirements. Thus, we regret to inform that J&J cannot benefit from the said tax exemption law after purchasing DMO’s shares.
Thank you for expressing your interest in DMO.