Samsung heirs initiate stock disposal to address inheritance tax

From left Samsung Electronics Co. executive chairman Jay Y. Lee, Samsung Welfare Foundation head Lee Seo-hyun, former head of Leeum Museum of Art Hong Ra-hee, and Hotel Shilla President and CEO Lee Boo-jin [Photo by Lee Chung-woo]

Members of Samsung Group’s founding family initiated a stock disposal of approximately 2.6 trillion won ($1.98 billion) to address part of the inheritance tax related to the late Lee Kun-hee’s estate.

According to the Financial Supervisory Service’s electronic disclosure system on Sunday, Hong Ra-hee, former head of Leeum Museum of Art, Hotel Shilla President and CEO Lee Boo-jin, and Samsung Welfare Foundation head Lee Seo-hyun entered into stock disposal trust agreements with Hana Bank on October 31, 2023. The purpose of these agreements, as stated by the mother and daughter trio, is to facilitate payment of inheritance taxes. The trust agreements are set to expire on April 30, 2024.

As a result of these agreements, Hong, with a 0.32 percent stake, Lee Boo-jin, with a 0.04 percent stake, and Lee Seo-hyun, with a 0.14 percent stake, will sell their Samsung Electronics shares. Based on the closing price of 69,600 won on the latest trading day, Hong is set to dispose of shares worth 1.34 trillion won, Lee Boo-jin 167.1 billion won, and Lee Seo-hyun 564 billion won. On the same day, Lee Boo-jin also entered into trust agreements to dispose of her stock in Samsung C&T (0.65 percent), Samsung SDS (1.95 percent), and Samsung Life Insurance (1.16 percent), with the disposal amounting to 499.3 billion won based on the closing prices.

The total value of the stocks the family is divesting in this effort amounts to 2.57 trillion won, while the inheritance tax that the family is obligated to pay after Lee Kun-hee’s death totals 12 trillion won.