Samsung’s family members plan to sell Samsung Electronics and major affiliates’ shares to pay the inheritance tax imposed after the passing of former Chairman Lee Kun-hee in 2020.
It has been reported that members of the Samsung family, including Hong Ra-hee, former Director of Leeum Samsung Museum of Art, Lee Boo-jin, President of Hotel Shilla, and Lee Seo-hyun, Head of Samsung Welfare Foundation, are planning to sell shares of Samsung Electronics and other major affiliates of the group for a total of 2.8 trillion won ($2.1 billion).
This is being done to raise funds for the $9.1 billion inheritance tax imposed on their assets.
The aforementioned members of the Samsung family initiated forecasting demand for a massive sale of Samsung Electronics shares worth a total of $1.6 billion through block deals on Jan. 10, according to the sources.
Block deals refer to a type of stock trade that involves buying or selling a large number of shares between two parties outside the open market. This type of trade is particularly beneficial for large investors who intend to execute significant transactions without causing any substantial price fluctuations in the market.
Hong plans to sell the largest amount of shares in Samsung Electronics, totaling to 19.2 million or a 0.32 percent stake. Seo-hyun plans to sell 8.1 million shares or 0.14 percent, while Boo-jin plans to sell 2.4 million shares or 0.04 percent, according to reports. The sale is being managed by Goldman Sachs, Citibank, and other financial institutions.
The former Chairman Lee Kun-hee left an inheritance worth $19.7 billion, resulting in an inheritance tax of approximately $9.1 billion for the Samsung family. The family announced their plan to pay the inheritance tax over five years starting from April 2021, using the postponement of tax payment system.
It is known that Hong and her two daughters have been under financial pressure, as they took out loans backed by their stocks to pay the inheritance tax. The annual interest alone amounts to $151 million.
Meanwhile, Samsung Electronics Chairman Lee Jae-yong is reportedly raising funds for the inheritance tax using credit loans received in 2021 and dividend income from Samsung affiliates. It is stated that he is not taking any separate security-based lendings for this purpose.
Source: Chosunilbo
