Samsung's Lee family to pay over $14.3b in inheritance taxes
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The late Mr Lee Kun-hee left an estate that included stakes in Samsung affiliates valued at US$17 billion (S$22.6 billion).
PHOTO: REUTERS
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SEOUL • The family of the late Samsung Electronics chairman Lee Kun-hee said yesterday that it would pay more than 12 trillion won (S$14.3 billion) in inheritance taxes.
Mr Lee, who is credited with transforming Samsung into the world's largest smartphone and memory chipmaker, died on Oct 25. His estate included stakes in Samsung affiliates valued at US$17 billion (S$22.6 billion).
The Lee family's handling of the hefty inheritance tax bill - one of the largest ever in both South Korea and globally - had been closely watched as it could have resulted in the dilution of the family's controlling stake in Samsung.
The family had been discussing using shares in affiliated companies as collateral for personal loans to pay part of the tax bill, a measure that would avoid the sale of their extensive Samsung holdings, Reuters reported last week, citing sources.
The family's statement yesterday did not give details of how Mr Lee's shares would be distributed among the heirs or whether any would be sold. Besides loans, the family is expected to use dividends from both its own and Mr Lee's shareholdings to pay the tax, analysts have said.
Mr Lee's shareholdings included a 4.18 per cent stake in Samsung Electronics, 0.08 per cent of Samsung Electronics preferred shares, 20.76 per cent of Samsung Life Insurance, 2.88 per cent of Samsung C&T, and 0.01 per cent stake in Samsung SDS, which according to South Korean tax code valuation were worth about 18.96 trillion won.
The tax code allows payment in instalments, with one-sixth of the total tax bill to be paid first, then the rest over five years at an annual interest rate currently set at 1.2 per cent.
The family also announced that it would donate one trillion won to public healthcare charities, including for the creation of a specialised infection diseases laboratory.
Mr Lee's extensive collection of antiques and paintings will be donated to the National Museum of Korea and other cultural organisations.
REUTERS
