IBX-Jakarta. To settle inheritance taxes, family members of Jay Y. Lee, the chairman of Samsung Electronics, have divested shares valued at 2.8 trillion won (US$2.12 billion) in the company and its subsidiaries. Approximately 29.8 million shares, constituting a 0.5% stake in Samsung Electronics, were sold at a discount ranging from 1.2% to 2.0% compared to the Wednesday closing price of 73,600 won, as reported by the Seoul Economic Daily, citing anonymous investment banking sources.
Concurrently, shares in affiliated companies such as Samsung C&T, Samsung SDS, and Samsung Life Insurance were also part of block deals totaling around 644 billion won, all aimed at fulfilling the inheritance tax requirements, according to the same report. The individuals responsible for the sale include Hong Ra-hee, the widow of the late Samsung Group chairman Lee Kun-hee, along with her children, including Jay Y. Lee.
Given South Korea’s high inheritance tax rate of 50%, which surpasses the OECD’s typical rate of 25% and is second only to Japan’s 55%, it is a common practice for members of chaebol families in Korea to sell company shares or leverage them for bank loans to meet their inheritance tax obligations, as noted by The Korea Times.
Source: Samsung family members sell $2B worth of shares to pay inheritance taxes (msn.com)
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