Inheritance Tax Set at over 11 Trillion Won

Samsung Electronics vice chairman Lee Jae-yong is headed for court for his trial on Dec. 9.

The stock inheritance tax of the bereaved family of the late Samsung Group chairman Lee Kun-hee has been fixed at more than 11 trillion won. The total inheritance tax including those on real estate properties exceeds 12 trillion won, more than 300 percent of the family’s inheritance tax reported last year. The tax return deadline is April 30, 2021.

The family is likely to divide the payment in view of the size of the tax. Then, one-sixth of the total payment must be made next year with an annual interest of 1.8 percent applied and the rest must be paid for five years.

This is a huge burden on the part of Samsung Electronics vice chairman Lee Jae-yong. According to industry sources, the vice chairman may sell his shares, take out loans by using his shares and increase dividend payments from subsidiaries. “Samsung Life Insurance and Samsung SDS shares are highly likely to be disposed of and major subsidiaries, including Samsung Electronics, are likely to increase their dividend payments,” one of them said.

The inheritance tax burden is hanging heavy on the vice chairman, who is already facing multiple lawsuits. These include the litigation related to the 2016 South Korean political scandal, which is about to end, and that related to his corporate succession, which began two months ago.

The former has continued for no less than four years or so. The latter is much more complicated than the former and the duration of the litigation is predicted to be far longer than that of the former.
 

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