"Due to Inheritance Tax"... Samsung Family to Sell Affiliate Shares Worth 2 Trillion Won

Hong Ra-hee, Lee Boo-jin, and Lee Seo-hyun Sign Disposal Trust Contract with KB Kookmin Bank
Vice Chairman Lee Jae-yong Only Made a Deposit at the End of Last Month

[Image source=Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] The Samsung family, including former Leeum Museum director Hong Ra-hee, has decided to sell affiliate stocks worth more than 2 trillion won to pay inheritance tax on the estate left by the late Samsung Chairman Lee Kun-hee.

According to the Financial Supervisory Service's electronic disclosure on the 9th, former director Hong signed a securities disposal trust contract with KB Kookmin Bank on April 5 for 19,941,860 shares of Samsung Electronics. This corresponds to 0.33% of Samsung Electronics' total shares, and considering the closing price of 71,500 won on the previous day, the total value is about 1.4258 trillion won. The trust contract period is from April 5 to April 25 of next year. Samsung Electronics disclosed that the purpose of the trust contract is "for inheritance tax payment." Currently, former director Hong holds 137,244,666 shares (2.3%) of Samsung Electronics.

Shilla Hotel President Lee Boo-jin and Samsung Welfare Foundation Chairperson Lee Seo-hyun also signed trust contracts with KB Kookmin Bank for the same purpose on April 8 for 1,509,430 shares of Samsung SDS (worth 242.2 billion won based on the closing price on the 8th), Samsung SDS announced. In the case of Chairperson Lee Seo-hyun, she also signed a trust contract for 3,459,940 shares of Samsung Life Insurance (worth 247.3 billion won) for the same purpose. Vice Chairman Lee Jae-yong has not signed any trust contracts for stock sales separately.

The value of the stocks the Samsung family intends to dispose of amounts to 2.1575 trillion won based on the closing price on the 8th. Previously, the Samsung family, including Vice Chairman Lee Jae-yong, deposited some shares of affiliates such as Samsung Electronics, Samsung C&T, Samsung SDS, and Samsung Life Insurance with the court for installment payment of inheritance tax. This is the first time they have proceeded with stock disposal.

The Samsung family's decision to sell affiliate stocks is interpreted as a move to secure funds for inheritance tax payment. It is reported that the Samsung family inherited about 26 trillion won in assets, including affiliate stocks worth about 19 trillion won and real estate from Chairman Lee. Regarding the inheritance tax on the shares, former director Hong is estimated to bear about 3.1 trillion won, President Lee Boo-jin 2.6 trillion won, and Chairperson Lee Seo-hyun 2.4 trillion won.

The Samsung family has announced that they will pay the inheritance tax in six installments over the next five years through the installment payment system. They made one installment payment when filing the inheritance tax at the end of April and must make another payment by the end of April next year. To this end, they have taken loans from financial institutions using stocks as collateral and have also taken out unsecured loans due to loan limit regulations at securities firms.