The Samsung owning family is selling a portion of their Samsung Electronics shares to prepare for inheritance tax.
According to the Financial Supervisory Service on Nov. 3, Hong Ra-hee, the former director of Leeum, Samsung Museum of Art; Lee Boo-jin, CEO of Hotel Shilla; and Lee Seo-hyun, chairperson of the Samsung Welfare Foundation signed a trust agreement for the sale of securities with Hana Bank on Oct. 31. This is to pay inheritance tax on the property they inherited from the late Lee Kun-hee, the former chairman of Samsung Electronics. The trust agreement is valid until April 30 of next year.
They each plan to divest their holdings in Samsung Electronics, with Former Director Hong set to divest 19,324,106 shares, which represents 0.32 percent of total shares, while CEO Lee is set to divest 2,401,223 shares, which amounts to 0.04 percent of total shares, and Chairperson Lee is set to divest 8,103,854 shares, equivalent to 0.14 percent of all shares.
Based on the closing price of 69,600 won (US$53.05) on Nov. 3, the total value of the shares that the three individuals are divesting amounts to 2.08 trillion won. Additionally, CEO Lee also signed trust agreements to sell stakes in Samsung C&T, equivalent to 0.65 percent of the shares’ value; Samsung SDS, equivalent to 1.95 percent of the shares’ value; and Samsung Life, equivalent to 1.16 percent of the shares’ value, on the same day. The total value of these stakes, based on the closing price on Nov. 3, amounts to 499.3 billion won.
The total value of the shares that the three family members are currently pursuing for divestment amounts to approximately 2.58 trillion won.
Following the passing of the late Chairman Lee, the Samsung family is facing an inheritance tax of 12 trillion won. The family members have been utilizing the yearly installment payment system, making partial payments of the inheritance tax over five years starting from April 2021. Chairman Lee Jae-yong owns 1.63 percent of Samsung Electronics shares.
In October 2021, former Director Hong also signed a trust agreement with KB Kookmin Bank and sold 0.33 percent of Samsung Electronics shares. At that time, CEO Lee divested 1,509,430 shares of Samsung SDS, and Chairperson Lee divested 3,459,940 shares of Samsung Life and 1,509,430 shares of Samsung SDS.
A source within the business sector pointed out, “So far, the Samsung family has explored various options such as stock collateral loans and credit loans, but it may be challenging to bear the entire 12 trillion won inheritance tax. The weakening of control over Samsung could become a reality.”