Lee Kun-hee, the late chairman of Samsung Group who passed away in 2020, reached an agreement with Hana Bank to sell shares of various companies within the conglomerate worth 2.57 trillion won or approximately 70,000 million baht to pay inheritance tax. The shares sold include Samsung Electronics, Samsung C&T, and Samsung Life Insurance.
This share sale is just a portion of the total inheritance tax that the heirs of the Lee family have to pay, which amounts to around 12 trillion won or approximately 326,000 million baht. The payment will be divided over 5 years starting from 2021, and approximately 6 trillion won has already been paid.
Among the heirs, Lee Jae-yong, the chairman of Samsung Group, chose not to sell any shares. Instead, he will pay the tax with loans and dividends from shares, with Lee himself having to pay a tax of 500 trillion won annually.
South Korea has one of the highest inheritance tax rates in the world, with rates reaching up to 60% in some cases involving inherited shares.
TLDR: The late Lee Kun-hee, former chairman of Samsung Group, made a deal with Hana Bank to sell shares worth 2.57 trillion won to pay for inheritance tax. The heirs of the Lee family will have to pay a total tax of around 12 trillion won over 5 years. Lee Jae-yong, the current chairman, will pay the tax with loans and dividends, facing an annual tax payment of 500 trillion won. South Korea has one of the highest inheritance tax rates globally, reaching up to 60% in certain cases involving shares.
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