Samsung's Lee family to pay more than 12 trln won inheritance taxes

SAMSUNG SDS

28/04/2021 03:00

SEOUL, April 28 (Reuters) - The family of deceased Samsung
Electronics  005930.KS  chairman Lee Kun-hee said on Wednesday
it will pay more than 12 trillion won ($10.78 billion) in
inheritance taxes for the estate of the late patriarch.
    Lee, who is credited with transforming Samsung into the
world's largest smartphone and memory chip maker, died on Oct.
25. His estate included shareholdings in Samsung affiliates
valued at $17 billion.
    The Lee family's handling of the hefty inheritance tax bill
- one of the largest ever in both 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.
 urn:newsml:reuters.com:*:nL1N2ME00M 
    The family's statement on Wednesday did not give details of
how Lee's shares will be distributed among the heirs or whether
any will be sold. Besides loans, the family is expected to use
dividends from both their own and Lee's shareholdings to pay the
tax, analysts have said.
    Lee's shareholdings included a 4.18% stake in Samsung
Electronics, 0.08% of Samsung Electronics preferred shares,
20.76% of Samsung Life Insurance  032830.KS , 2.88% of Samsung
C&T  028260.KS , and 0.01% stake in Samsung SDS  018260.KS ,
which according to South Korean tax code valuation were worth
about 18.96 trillion won ($17 billion).
    South Korea's 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%. 
    The family also announced it will donate 1 trillion won to
public health care charities, including for the creation of a
specialized infection diseases laboratory. Lee's extensive
collection of antiques and paintings will be donated to the
National Museum of Korea and other cultural organizations. 
    
($1 = 1,113.3700 won)

 (Reporting by Joyce Lee; editing by Jane Wardell)
 ((jungyoon.lee@tr.com; +82 2 6936 1467;))