Samsung family to sell $2B worth of shares to cover inheritance tax

Industry

Published: 06 Nov. 2023, 13:06

Samsung family to sell $2B worth of shares to cover inheritance tax

From left to right, Samsung Welfare Foundation's chief Lee Seo-hyun, Samsung Electronics Executive Chairman Lee Jae-yong and Hong Ra-hee attend a memorial concert held for late chairman Lee Kun-hee. [SAMSUNG ELECTRONICS]

Members of Samsung Group's owning family will sell nearly 2.6 trillion won ($2 billion) worth of shares in Samsung affiliates to cover inheritance taxes, according to a regulatory filing Sunday.

Since the death of the late Samsung Chairman Lee Kun-hee in October 2020, the family has been paying inheritance taxes in installments for the assets inherited according to a five-year plan. The total inheritance tax amounted to 12 trillion won.

According to the regulatory filing with the Financial Supervisory Service, Hong Ra-hee, the widow of Lee, and their two daughters, Hotel Shilla CEO Lee Boo-jin and Samsung Welfare Foundation's chief Lee Seo-hyun, signed a deal last Tuesday entrusting share disposal to Hana Bank.

Under the deal aimed at "inheritance tax payment," Hana Bank is required to dispose of a 0.32 percent share Hong has in Samsung Electronics and a combined 0.18 percent share owned by the two daughters in the firm by April 30, 2024.

The Samsung Electronics shares up for sale amount to about 2.08 trillion won when the latest market closing price of 69,600 won per share is applied.

The Hotel Shilla CEO also signed an additional deal entrusting the sale of her shares, which include a 0.65 percent share in Samsung C&T, a 1.95 percent share in Samsung SDS and a 1.16 percent share in Samsung Life Insurance. The combined value of the shares is 499.3 billion won.

BY KIM JU-YEON, YONHAP [kim.juyeon2@joongang.co.kr]