The Samsung owner family will wrap up payment this month of about 12 trillion won in inheritance tax imposed after former Chairman Lee Kun-hee died in 2020.
According to the business community on the 5th, Samsung Electronics Chairman Lee Jae-yong; Hong Ra-hee, honorary director of Leeum Museum of Art; Hotel Shilla President Lee Boo-jin; and Samsung C&T President Lee Seo-hyun, among other surviving family members, will pay the final installment of the inheritance tax this month. The inheritance tax, paid in partitioning over five years, totals about 12 trillion won. When former Chairman Lee Kun-hee died in 2020, he left an estate of about 26 trillion won, including stocks, real estate and artworks.
The inheritance tax burden is known to be 3.1 trillion won for Honorary Director Hong Ra-hee, 2.9 trillion won for Chairman Lee Jae-yong, 2.6 trillion won for President Lee Boo-jin and 2.4 trillion won for President Lee Seo-hyun, in that order. When they filed the inheritance tax in 2021, the family chose an installment payment plan, dividing the payments into six over five years.
In securing funds, Honorary Director Hong Ra-hee and Presidents Lee Boo-jin and Lee Seo-hyun gradually sold equity in affiliates such as Samsung Electronics, Samsung SDS and Samsung C&T, and used trust agreements. In January, Hong Ra-hee also signed a disposal trust agreement for 15 million shares of Samsung Electronics, continuing the final stage of fundraising.
Chairman Lee Jae-yong did not sell equity in core affiliates, raising funds for the inheritance tax through dividends and personal credit loans. Lee's equity in Samsung Electronics (common shares) increased to 1.67% from 0.70% before the inheritance, and his equity in Samsung C&T rose to 22.01% from 17.48%. His equity in Samsung Life Insurance also grew to 10.44% from 0.06%.
In 2021, the family donated 1 trillion won for medical contributions and gifted about 23,000 artworks collected by former Chairman Lee Kun-hee to the state.