Chairman Lee Kun-hee, that died Sunday, can face billions of dollars in inheritance tax. But that does not necessarily indicate they will need to seize control within the bunch by selling stocks.
South Korea’s wealthiest guy had an estimated fortune of about $20.7 billion, with the majority of it included of his bets at four Samsung units, according to the Bloomberg Billionaires Index. Together with the nation’s levy of up to 60 percent on average stocks for big shareholders and 50 percent on property and other resources, Lee’s household may owe a tax charge of roughly $10 billion — that may be Korea’s biggest — according to Friday’s closing rates.
The heirs will probably not sell stock to fund the fee, based on Chung Sun-sup, chief executive officer of Seoul-based corporate-analysis company Chaebul.com. On Monday, speculation which Samsung Group business {} dividends to {} it raised their stocks.
“Share earnings can lead to trouble since they’d lessen the household’s control within the group. No conglomerates will do this,” Chung said. “Rather, many of them choose to produce the money payment within five decades. Money can be ready through methods such as wages or wages.”
That is how Chairman Koo Kwang-mo, that took on the reins of LG Group at 2018 following his dad’s passing, is performing this: He and loved ones are spending his 921.5 billion won ($817 million) inheritance tax within five decades.
Even though Samsung Electronics dropped to comment on the way in which the family intends to cover and divide the fortune,” it stated”all taxes about the inheritance would be {} as required by legislation.”
Lee’s bets included a 4 percent holding from the planet’s biggest manufacturer of televisions, smartphones and memory processors and 21 percent of Samsung Life Insurance Co., which owns the second-biggest chunk of Samsung Electronics.
If he inherit each the late leader shares in Samsung Electronics and Samsung Life Insurance, then he might use dividends and funding from relatives to get ready for the tax payment,” stated Jongwoo Yoo, an analyst at Korea Investment & Securities.
“It is unsure how much money assets that the household holds today, however dividend income will not be sufficient to pay the taxation cost,” he wrote in a notice. “Thus, it is also highly possible that the household will rely on financing”
The younger Lee has been shrouded in legal issues associated with some controversial merger of 2 Samsung franchisees in 2015 that resisted his management of this group. While he retains less than 1 percent in Samsung Electronics, during the marriage he procured a 17% management at Samsung C&T Corp., that subsequently directly owns 5 percent of their tech firm.
Lee is anticipating a last judgment about a bribery situation who delivered him {} 2017, and he is facing another trial on financial-fraud fees for example stock-price manipulation to ease his series. While he’s denied any wrongdoing, he also made a personal apology to its recurring corruption scandals in Samsung and vowed to not hand down direction to his or her children.
“I offer my note here now that from today on, there’ll not be any more controversy concerning string,” Lee said in a media conference in May. “There will be no breach against law”
Samsung is the latest among a growing number of strong Korean family-run conglomerates committing to another generation. Before this month, Hyundai Motor Group called Euisun Chung as chairman at a movement that finished his takeover of top names out of his dad.
The heirs {} to prove they could bring changes because the so-called chaebols have regularly come under fire in recent years after a string of corruption scandals, based on Chaebul.com’s Chung.
“So it is important to learn how the Samsung household will care for the inheritance difficulty,” he explained.
–With the aid of Pei Yi Mak, Sohee Kim, Heejin Kim and Min Jeong Lee.
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