(from left) Hong Ra-hee, the wife of the late Lee Kun-hee; Lee Seo-hyun, the head of Samsung Welfare Foundation; and Lee Boo-jin, the CEO of Hotel Shilla
Following the passing of the late Lee Kun-hee, the former chairman of Samsung, in 2020, it has been revealed that the mother and two daughters of the Samsung owning family, including Hong Ra-hee, the former director of the Leeum Samsung Museum of Art; Lee Boo-jin, the CEO of Hotel Shilla; and Lee Seo-hyun, the head of the Samsung Welfare Foundation, are planning to sell a total of 2.8 trillion won (US$2.12 billion) worth of Samsung Electronics and major affiliate stakes as of the closing price on Jan. 10. This move aims to secure funds to cover the 12 trillion won inheritance tax imposed after Lee Kun-hee’s death.
According to financial sources on Jan. 10, the two daughters of the late Lee Kun-hee, along with his wife, have reportedly started forecasting demand for a massive sale, or block deal, involving a total of 2.19 trillion won worth of Samsung Electronics shares after the market closed on the same day. The sales volume is said to be led by Hong with 19,324,106 shares. Following her are Lee Seo-hyun, with 8,103,854 shares and Lee Boo-jin with 2,401,223 shares. In terms of ownership percentages, they represent 0.32 percent, 0.14 percent, and 0.04 percent, respectively. The sale is reported to be coordinated by firms such as Goldman Sachs and Citigroup.
The late Lee Kun-hee, the former chairman, left behind an inheritance worth 26 trillion won upon his passing. Consequently, the inheritance tax that the Samsung owner family is obligated to pay amounts to approximately 12 trillion won. The family has announced their intention to utilize the annual installment payment system, beginning in April 2021, to gradually settle the inheritance tax over a span of five years.
The late Lee’s two daughters and his wife have reportedly faced significant financial strain in settling their inheritance taxes, even after securing stock loans, with an annual interest burden reaching a considerable 200 billion won.
Lee Jae-yong, the chairman of Samsung Electronics, is said to have arranged funds for inheritance tax without resorting to separate stock-secured loans. Instead, he reportedly utilized a credit loan obtained in 2021 and dividends from Samsung affiliates.
Post Disclaimer
The information provided in our posts or blogs are for educational and informative purposes only. We do not guarantee the accuracy, completeness or suitability of the information. We do not provide financial or investment advice. Readers should always seek professional advice before making any financial or investment decisions based on the information provided in our content. We will not be held responsible for any losses, damages or consequences that may arise from relying on the information provided in our content.
