Samsung family to sell $1.8 bn shares in group units to pay inheritance tax

[Photo by Lee Chung-woo]

South Korea’s richest corporate family behind Samsung Group will sell 2.16 trillion won ($1.8 billion) worth stakes in the group affiliates to pay the world’s highest inheritance tax.

Hong Ra-hee, widow of late Samsung Chairman Lee Kun-hee and former director of Leeum, Samsung Museum of Art, signed a contract to sell 19,941,860 shares of Samsung Electronics worth 1.43 trillion won based on the Friday closing price with KB Kookmin Bank, according to a disclosure on Saturday.

Hong, the current largest individual stakeholder with a 2.3 percent stake in the world’s largest chipmaker, decided to unload 0.33 percent for payment of the inheritance tax.

Her two daughters also inked deals with KB Kookmin Bank to hand over their holdings in other group affiliates.

Hotel Shilla CEO Lee Boo-jin will yield a 1.95 percent stake or 1,509,430 shares in Samsung SDS worth 242.2 billion won.

Samsung Welfare Foundation Chair Lee Seo-hyun will sell 3,459,940 shares in Samsung Life Insurance (worth 247.3 billion won) and 1,509,430 shares in Samsung SDS (worth 242.2 billion won).

Combined shares to be sold by the family are worth about 2.16 trillion won. This is the first time the owner family tried to sell their stakes directly via a trust.

The late chairman left about 26 trillion won worth assets including stocks valued at 19 trillion won. The bereaved family members in April said they will divide the tax dues, worth above 12 trillion won, into six over the next five years.

The widow Hong is entitled for the biggest share of 3.1 trillion won, son Jay Y. Lee for 2.9 trillion won, Boo-jin for 2.6 trillion won and Seo-hyun for 2.4 trillion won.

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