Print Records, Heir Boss Of Samsung Conglomerate Lee Kun-hee Pays Inheritance Tax Of Up To Rp155 Trillion

JAKARTA - The heirs of the late Samsung Group Head Lee Kun-hee said they would pay inheritance tax of more than 12 trillion won, or about 10.7 billion US dollars, equivalent to Rp155,313,710,000,000, Wednesday, April 28.

This will be the largest tax payment in South Korean history, although it has not been disclosed how the family will divide the inheritance between them.

The announcement was made two days before the deadline for reporting and payment of inheritance tax to South Korean authorities.

The late Lee Kun-hee left behind his wife, Hong Ra-hee, only son, Jae-yong, and two daughters - Boo-jin and Seo-hyun.

Lee senior, who was the richest person in South Korea, died in October last year and left behind assets estimated to be worth more than 22 trillion won, including stocks worth about 19 trillion won. When real estate is calculated, the assets may be up to 25 trillion won.

The Lee family said they would pay the inheritance tax in installments. They can pay off one-sixth of the inherited assets by the end of this month and pay the remainder over the next five years.

They tend to fund their inheritance taxes with stock dividends, but can also get a bank loan to pay around 2 trillion won annually to receive late Lee's wealth.

The late Lee owned 4.18 percent of the shares in flagship Samsung Electronics, 20.76 percent in Samsung Life Insurance, 2.88 percent in Samsung CT, the group's parent company, and 0.01 percent in Samsung SDS. .

South Korean business market observers have speculated that Lee's shares will be distributed to support the leadership of Lee Jae-yong, the de facto leader of the Samsung Group who is also his eldest son.

Jae-yong controls the group with a spiderweb-like ownership structure linking Samsung CT, Samsung Life Insurance and Samsung Electronics.

He only holds a 0.7 percent stake in Samsung Electronics, but controls the Samsung Group through his hold on Samsung CT with a 17.33 percent stake.

Jae-yong is currently serving a 30-month prison sentence for preparation and other offenses. The South Korean government has rejected a pardon application for him filed by a business lobby group.

To note, the family of the late Lee Kun-hee said they would return some of the late Lee's wealth to society.