Samsung Family Sells 2.6 Trillion Won in Affiliate Stocks... 'For Inheritance Tax Payment'

Hong Ra-hee, Lee Boo-jin, and Lee Seo-hyun Mother and Daughters, Securities Disposal Trust Agreement

The Samsung owner family is selling shares of affiliates, including Samsung Electronics worth approximately 2.6 trillion KRW, to prepare for inheritance tax payments.

According to the Financial Supervisory Service on the 5th, on the 31st of last month, former Leeum Director Hong Ra-hee, Hotel Shilla President Lee Boo-jin, and Samsung Welfare Foundation Chairperson Lee Seo-hyun signed a securities disposal trust contract with Hana Bank. The trust contract entrusts the financial company with the sale and purchase of stocks, and it was disclosed that the purpose of the sale is "for inheritance tax payment." The contract period is from the 31st of last month until April 30th of next year.

Samsung Electronics Chairman Lee Jae-yong, former Samsung Museum of Art Leeum Director Hong Ra-hee, and Samsung Welfare Foundation Chairperson Lee Seo-hyun attended the "Lee Kun-hee 3rd Anniversary Memorial Concert" held on the 19th of last month at the Samsung Electronics Human Resources Development Center Concert Hall in Yongin, Gyeonggi Province.
[Image source=Yonhap News]

The total Samsung Electronics shares being sold amount to 0.5%. Director Hong, President Lee, and Chairperson Lee are selling 0.32%, 0.04%, and 0.14% of Samsung Electronics shares, respectively. Based on the closing price on the 3rd, the total value is 2.0761 trillion KRW. Former Director Hong accounts for 1.345 trillion KRW, President Lee for 167.1 billion KRW, and Chairperson Lee for 564 billion KRW.

Director Hong, President Lee, and Chairperson Lee are selling 0.32%, 0.04%, and 0.14% of Samsung Electronics shares, respectively. The sale amount, reflecting Samsung Electronics' closing price on the 3rd, is 2.0761 trillion KRW. Former Director Hong's portion is 1.345 trillion KRW, President Lee's is 167.1 billion KRW, and Chairperson Lee's is 564 billion KRW.

President Lee is also proceeding with the sale of shares in Samsung C&T, Samsung SDS, and Samsung Life Insurance. Additional trust contracts were signed to sell shares of Samsung C&T (0.65%), Samsung SDS (1.95%), and Samsung Life Insurance (1.16%). The total value is approximately 499.3 billion KRW.

The total value of Samsung affiliate shares being sold by the three individuals is 2.5754 trillion KRW. The total inheritance tax to be paid is about 12 trillion KRW. The family of the late Samsung Chairman Lee Kun-hee has been using the installment payment system to pay the inheritance tax in installments over five years starting from April 2021.