Late Samsung chairman’s family sell $2 billion worth of shares to help pay huge South Korean inheritance tax

Late Samsung chairman’s family sell $2 billion worth of shares to help pay huge South Korean inheritance tax

Late Samsung chairman's family sell $2 billion worth of shares to help pay huge South Korean inheritance tax

  • 2020 saw the passing of the richest person in South Korea, the former chairman of Samsung Electronics.
  • Currently, billions of shares are being sold by Lee Kun-hee’s family to cover inheritance taxes.

According to The Korea Times, which cited industry insiders, the widow of the former chairman of Samsung Electronics and her two daughters sold shares valued at billions of dollars to assist pay off their inheritance tax.

When he passed away in October 2020, Lee Kun-hee was the richest person in Korea, according to Reuters, with an estimated net worth of $21 billion.

However, the family was slammed with more than 12 trillion won, or around $9 billion, in tax obligations as a result of South Korea’s highest inheritance tax rate of 50%, which is now the second highest in the world.

In an effort to generate money to help with the cost, Lee’s wife Hong Ra-hee and her daughters Boo-jin and Seo-hyun sold a combined $2 billion worth of shares this week.

Late Samsung chairman’s family sell $2 billion worth of shares to help pay huge South Korean inheritance tax

According to Reuters, which cited the Korea Economic Daily, shares of Samsung Electronics were scheduled to be sold at a 1.2% to 2% discount to the stock’s previous closing price.

In an attempt to reduce the enormous tax burden, the family also announced in 2021 that it would give up around 23,000 pieces of its art collection, which included pieces by Spanish surrealist Salvador DalĂ­ and cubist Pablo Picasso, to national institutions in South Korea.

The family further stated that, as previously reported by Business Insider, it also intended to donate $900 million to charitable organizations.

According to the BBC, Jay Y. Lee, the son of Lee Kun-hee, has been de facto leader of Samsung since 2014.

The younger Lee was suspected of paying a previous president to secure support for his succession at Samsung, and as a result, he twice risked prison time for his involvement in a government corruption scandal.

In 2022, the Justice Ministry granted him a pardon, citing his importance as a businessman in aiding the nation in overcoming a “national economic crisis.”

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