Samsung family to sell $2.12 billion worth of company shares to pay inheritance taxes

Finance

Published: 11 Jan. 2024, 10:26

Samsung family to sell $2.12 billion worth of company shares to pay inheritance taxes

From left, Hong Ra-hee, Lee Jae-yong and Lee Seo-hyun attend a concert held in commemoration of late Samsung Group chairman Lee Kun-hee in October 2023. [YONHAP]

Samsung Group's family members plan to sell nearly 2.8 trillion won ($2.12 billion) worth of their shares in Samsung Electronics and other affiliates in a block deal in an apparent bid to pay inheritance taxes.

Hong Ra-hee, the widow of late Samsung Group chairman Lee Kun-hee, her son Samsung Electronics Chairman Lee Jae-yong and two daughters — Hotel Shilla CEO Lee Boo-jin and Lee Seo-hyun, chief of the Samsung Welfare Foundation —are pushing to unload a combined 29.8 million shares worth 2.2 trillion won in Samsung Electronics, according to industry sources on Wednesday.

The sale will be at a discount of 1.2 to 2 percent from Samsung Electronics' closing share price of 73,600 won on Wednesday. The block deal is expected to be completed before the stock market opens Thursday.

Hong plans to unload the largest amount at 19.2 million shares or a 0.32 percent stake in Samsung Electronics, followed by Lee Seo-hyun with 8.1 million shares or 0.14 percent and Lee Boo-jin with 2.4 million shares or 0.04 percent.

The Hotel Shilla CEO also plans to unload some of her stakes in Samsung C&T, Samsung SDS and Samsung Life Insurance in a block deal, according to the sources.

The block sale is widely seen as aimed at paying inheritance taxes totaling 12 trillion won following the death of Lee Kun-hee in October 2020.

Since his death, the owner group's family members have been paying their inheritance taxes in installments over a five-year span that started in April 2021.

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