Samsung family announces plans to pay off more than $10 billion of inheritance tax

Samsung family announces plans to pay off more than  billion of inheritance tax [ad_1]

A Samsung flag (R) and South Korean nationwide flag flutter on the firm’s Seocho constructing in Seoul on April 28, 2021.

JUNG YEON-JE | AFP by way of Getty Images

SINGAPORE — The family of Samsung Electronics’ late chairman introduced Wednesday they are going to be paying off a large inheritance tax invoice of more 12 trillion Korean received (about $10.78 billion).

The inheritance tax cost is one of the most important within the historical past of South Korea and globally — “equivalent to three to four times the Korean government’s total estate tax revenue last year,” Lee Kun-hee’s family mentioned in an announcement.

“As provided for under the law, the Family plans to pay the full amount of the inheritance tax over a period of five years, starting in April 2021,” the Lee family mentioned.

Lee passed away in October 2020 at the age of 78, after rising the Samsung Group into South Korea’s largest conglomerate. He took the helm in 1987 following the dying of his father, Lee Byung-chul, who based the conglomerate.

Lee’s huge property

Yonhap reported that the family is probably going to fund the inheritance taxes with inventory dividends however might additionally get financial institution loans.

The family didn’t reveal how the members will cut up the patriarch’s stockholdings.

Reuters reported in October that Lee was the wealthiest stock owner in South Korea.

His property was valued at about $23.4 billion {dollars}, in accordance to Reuters which cited native media. Lee’s inventory possession consists of 4.18% of Samsung Electronics widespread shares and 0.08% of most well-liked shares, 20.76% stake in Samsung Life Insurance, 2.88% stake in Samsung C&T and a 0.01% stake in Samsung SDS, reported Reuters.

Shares of these companies declined after information of the tax announcement on Wednesday. Samsung Electronics fell 0.97% and Samsung C&T dropped 2.92%. Samsung SDS slipped 0.8% whereas Samsung Life Insurance was 0.24% decrease.

The family additionally mentioned they are going to be donating 1 trillion received to health-care and medical causes.

“The late Chairman Lee’s collection of antiques, Western paintings and works by Korean artists — approximately 23,000 pieces in total — will be donated to national organizations,” they mentioned, in recognition of his ardour for artwork assortment and “his belief in the importance of passing on our cultural heritage to new generations.”

South Korean chaebols

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