The widow of former Samsung Group Chairman Lee Kun-hee, Hong Ra-hee, has sold 15 million shares of Samsung Electronics Co., Ltd. (SSNLF.US) through a block trade, in one of the largest such transactions in South Korea. The shares were priced at 205,237 won each, bringing the total transaction value to nearly 3.1 trillion won (approximately $2.1 billion). Following the sale, Hong Ra-hee's stake in Samsung Electronics decreased from 1.49% to 1.24%.
The sale was conducted to fulfill inheritance tax obligations. Lee Kun-hee passed away in October 2020, leaving an estate valued at approximately 26 trillion won (around 119 billion USD). Under South Korea's top inheritance tax rate of 50%, the total tax liability reached about 12 trillion won. Since April 2021, Hong Ra-hee and her children, Lee Jae-yong, Lee Boo-jin, and Lee Seo-hyun, have been settling the tax bill in six installments by selling shares in group subsidiaries and securing multiple rounds of loans against their holdings.
This latest divestment marks the completion of the Samsung family's five-year plan to pay off the inheritance tax. With the final payment made, the long-standing pressure from the need to reduce core shareholdings is expected to ease, potentially accelerating current Chairman Lee Jae-yong's "New Samsung" growth strategy.
Analysts suggest that settling the inheritance tax will allow Samsung Group to move beyond financial and governance constraints linked to the succession process. Combined with Lee Jae-yong's acquittal last year in a controversial merger case and improved performance in Samsung's semiconductor business, the resolution of the tax issue is likely to significantly reduce management uncertainties for the conglomerate.
At the time of reporting, Samsung Electronics' shares listed in South Korea were down more than 3%.
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