Samsung Heirs, who also hold senior management positions in the company, are selling their shares to be able to pay government tax. The tax of the Lee family is the highest amount of inheritance tax in the history of the country.
Starting back to last October, Samsung chairman Lee Kun-hee passed away at the age of 78. According to the reports, his fortune is estimated at 26 trillion won ($ 21 billion), that $18 billion of it is the company’s stock. The South Korean government is now seeking to collect inheritance tax from Samsung’s heir family. As a result, the family has decided to sell its stake in the Samsung Group companies to pay government taxes.
Samsung heirs tax is about 11 trillion won ($ 9 billion), the highest inheritance tax in South Korean history. Of course, under certain conditions, it is possible to pay this amount in 5 years, and it is not necessary to pay it all at once. Widow of Lee Kun-hee, Jay Y. Lee, Lee Boo-jin, and Lee Seo-hyun are responsible for paying the tax.
The widow Hong Ra-hee sold 19,941,860 shares of the company, and this amount of shares bought her 1.43 trillion won ($1 billion). She owns 2.3% of Samsung Electronics.
Lee Seo-hyun has sold 3,459,940 shares of Samsung Life Insurance, bringing him 247.3 billion won ($ 200 million). He also sold 1,509,430 shares in Samsung SDS that are worth around 242.2 billion won. Lee Kun-hee’s other heirs must also be prepared to pay taxes if they have acquired a part of his assets.
Management instabilities are the biggest threat against Samsung
As one of South Korea’s largest and wealthiest companies, Samsung plays a huge role in the country’s economy and GDP. But the company has been struggling with management problems for years, and even one of its heirs, Lee Jae-yong, has spent time in prison for paying bribes to the former president. The South Korean government recently granted him parole. Of course, this case is not over yet, and one of the most important Samsung heirs must appear in the Supreme Court again and answer for the accusations.
The biggest threat to Samsung’s current position in the market is not rival companies but managerial instability within the company itself. If the company’s heirs can not end this unrest, the company’s position in the market will be shaky.