The family of late Samsung Electronics president Lee Kun-hee said Wednesday that it will pay more than 12 trillion won ($ 10.78 billion) in inheritance taxes for the late patriarch’s inheritance.
Lee, who is credited with turning Samsung into the largest smartphone and memory chip maker in the world, died on October 25. Its assets included holdings in Samsung affiliates worth $ 17 billion.
The Lee family’s handling of the hefty inheritance tax bill – one of the largest ever seen both in Korea and globally – had been closely watched as it could have led to the dilution of the family’s controlling stake in Samsung.
The family was discussing using shares in affiliates as collateral for personal loans to pay part of the tax bill, a measure that would prevent the sale of their vast Samsung holdings, Reuters reported last week, citing sources.
Wednesday’s family statement did not provide details on how Lee’s shares will be distributed among the heirs or whether any will be sold. In addition to the loans, the family is expected to use dividends from their holdings and Lee to pay taxes, analysts said.
Lee’s holdings included a 4.18% stake in Samsung Electronics, 0.08% of the preferred stock of Samsung Electronics, 20.76% of Samsung Life Insurance, 2.88% of Samsung C&T and a stake of 0.01% in Samsung SDS, which according to the South Korean tax code valuation was worth about 18.96 trillion won ($ 17 billion).
South Korea’s tax code allows for payment in installments, with one sixth of the total tax bill to be paid first, then the remainder over five years at an annual interest rate currently set at 1.2%.
The family also announced that it will donate 1 trillion won to public health charities, including for the creation of a laboratory specializing in infectious diseases. Lee’s extensive collection of antiques and paintings will be donated to the National Museum of Korea and other cultural organizations.
(This story was not edited by NDTV staff and is automatically generated from a syndicated feed.)