‘Prince’ Samsung pays a record inheritance tax
- Tram Ho
|The three children of the late Samsung Chairman Lee Kun Hee: from left to right, Samsung Electronics Vice President Lee Jae Yong, Hotel Shilla CEO Lee Boo Jin and Samsung Welfare Foundation Director Lee Seo Hyun. (Photo: Yonhap)|
The Samsung heirs did not disclose how they would divide the inheritance shares. This is an important issue in shaping the ownership of Korea’s No. 1 corporation.
The announcement was made by Samsung two days before the deadline to report and pay inheritance taxes to the authorities. Mr. Lee Kun Hee has a wife and three children.
The chairman of Samsung passed away in October 2020 and left a fortune of more than 22 trillion won, including shares worth about 19 trillion won. If you include real estate, his property could be up to 25 trillion won.
The Lee family said they will pay inheritance tax in installments. They can pay one-sixth of the money by the end of this month and the rest over the next five years.
Mr. Lee Kun Hee holds a 4.18% stake in Samsung Electronics, a 20.76% stake in Samsung life insurance company, 2.88% stake in Samsung C&T construction and 0.01% in the company. information technology services company Samsung SDS.
Market experts speculate that Lee’s shares could be divided to prioritize strengthening the power of Lee Jae Yong’s son, head of Samsung Group. Lee Jae Yong runs the group through a massive ownership structure that connects Samsung C&T, Samsung Life Insurance and Samsung Electronics. Although he only holds a 0.7% stake in Samsung Electronics, he holds a 17.7% stake in Samsung C&T.
Observers said that Lee Jae Yong could receive a majority stake in his father in Samsung Electronics. An unnamed Samsung official revealed that there was no discord among Samsung family members over the stock split.
As a rule, reporting inheritance tax does not mean heirs have to perfect a detailed plan. They can submit plans and then change them if they agree.
The late President’s family will donate 700 billion won to the country to overcome the Covid-19 pandemic, of which 500 billion won will be spent building the first hospital in the country to serve infectious diseases. The rest is devoted to vaccine research, treatment, and to build a national research center for epidemics. In addition, they donate an additional 300 billion won to support children with cancer and rare diseases. The amount is covered for approximately 17,000 young patients over the next 10 years.
Samsung will donate about 23,000 artworks in Mr. Lee’s collection, including famous paintings and treasures. It is estimated that these assets are worth 1 to 2 trillion won. Out of that, 21,600 antiques, including 60 state-designated properties, will be donated to local museums. About 1,600 works of contemporary art will be donated to the National Museum of Contemporary and Modern Art as well as other art centers across the country. Donated works of art include paintings by artists such as Pablo Picasso, Salvador Dali and Claude Monet.
Du Lam (According to Yonhap)
Source : Genk