Family members of Samsung Electronics chairman Jay Y. Lee have sold 2.8 trillion won (US$2.12 billion) worth of shares in the company and its affiliates to pay inheritance taxes.
The sale of about 29.8 million shares, or a 0.5% stake in Samsung Electronics, was at a discount of 1.2% to 2.0% from Samsung shares’ Wednesday closing price of 73,600 won, citing unnamed investment banking sources.
Shares in affiliates Samsung C&T, Samsung SDS and Samsung Life Insurance were also offered simultaneously in block deals worth around 644 billion won for the same purpose, the report said.
The shares were sold by Hong Ra-hee, the widow of late Samsung Group chairman Lee Kun-hee, and her children, including Jay Y. Lee.
Korea’s top inheritance tax rate of 50% is considerably greater than the OECD’s typical rate of 25% and is second only to Japan’s 55%. It is therefore not uncommon for members of Korea’s chaebol families to sell company shares or secure bank loans using those shares as collateral to cover their inheritance tax obligations.