In a strategic move, three members of Samsung Group's founding family have recently divested their shares, amounting to a substantial $2 billion in various group affiliates, including Samsung Electronics. This move is believed to be a calculated step to address inheritance tax obligations. The announcement came through a regulatory filing by Samsung Electronics, disclosing that Hong Ra-hee, the mother of Samsung Electronics Chairman Lee Jae-yong, alongside her two daughters – Hotel Shilla CEO Lee Boo-jin and Lee Seo-hyun, chief of the Samsung Welfare Foundation – collectively sold 29.8 million shares valued at 2.17 trillion won in the company.
The shares were offloaded at 72,717 won per share in a block deal, resulting in reduced stakes in Samsung Electronics for the trio, now standing at 1.45%, 0.78%, and 0.7%, respectively, according to reports from Yonhap news agency.
Additionally, other group affiliates such as Samsung C&T Corp., Samsung SDS Co., and Samsung Life Insurance Co. also confirmed in regulatory filings that Lee Boo-jin divested 0.65%, 1.95%, and 1.16% of her stakes in these companies on the same day.
This significant block sale is widely interpreted as a strategic move to cover inheritance taxes amounting to 12 trillion won, following the demise of the late Samsung Group Chairman Lee Kun-hee in October 2020. In the aftermath of his passing, the family members of the owner group have been making structured payments of their inheritance taxes, with the installment plan spanning five years and commencing in April 2021.
(With Agency Inputs)
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