Samsung Group heirs finalise 12 trillion won inheritance tax on former chairman’s estate

Industrial sources in South Korea reported today that the founding family of the Samsung Group has completed the payment of inheritance taxes amounting to approximately 12 trillion won ($8 billion) on the assets left by the late Chairman Lee Kun-hee.

These payments, which were scheduled to be settled over a five-year period starting from 2021, mark the conclusion of one of the largest inheritance tax obligations in South Korean history.

According to the sources, Lee Jae-yong, the late chairman’s only son, along with other heirs, funded the tax burden by selling additional shares in group affiliates, using dividend income, and employing other financing measures.

The other heirs include his mother Hong Ra-hee, the honorary director of the Leeum Museum of Art, and his sisters Lee Boo-jin, CEO of Hotel Shilla, and Lee Seo-hyun, President of Samsung C&T. Upon filing the inheritance tax return, the family expressed their commitment to paying in accordance with the law and principles, noting that the payment of taxes is a natural duty of citizens.

Since the death of Lee Kun-hee in 2020, the family has received nearly 4 trillion won in dividends from Samsung affiliates and, when considering previously accumulated dividends, it is estimated that the family utilised more than 6 trillion won to fund the tax payments. Furthermore, the rise in share prices of major group affiliates, including Samsung Electronics, helped ease the financial burden associated with securing the funds.

Lee Kun-hee left behind a fortune valued at an estimated 26 trillion won, consisting of shares, real estate, and art collections, with the inheritance tax on that wealth estimated at 12 trillion won, representing one of the largest inheritance taxes ever imposed in South Korean history.

WAM