The household of late Samsung Electronics chairman Lee Kun-hee mentioned on Wednesday they’ll pay greater than $10.8 billion in inheritance taxes for his property and donate his huge non-public artwork assortment to state curators.
Lee, who’s credited with remodeling Samsung into the world’s largest smartphone and reminiscence chip maker, died on October 25 with an property valued at round 26 trillion received.
The Lee household’s dealing with of the hefty inheritance tax invoice – one of many largest-ever in Korea and globally – has been intently watched because it may have resulted within the dilution of the household’s controlling stake in Samsung.
There was additionally important public curiosity amid requires Lee’s $1.76 billion artwork assortment to remain in South Korea and studies the household deliberate to make a big donation to make reparations for Lee’s conviction on tax evasion and embezzlement prices over a decade in the past.
The household mentioned they deliberate to pay the tax invoice over a interval of 5 years in six installments, beginning this month.
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“It is our civic duty and responsibility to pay all taxes,” it mentioned in a press release launched by Samsung.
Shares in Samsung C&T shares dropped as a lot as 5.5%, nonetheless, because the assertion supplied no element on how Lee’s shares can be distributed if any shares can be bought, nor specifics on how the household deliberate to fund the funds.
“There was general investor disappointment as no details about how the stakes will be divided were revealed,” mentioned Lee Sang-hun, an analyst at HI Funding & Securities.
Traders will as a substitute want to attend for regulatory filings to find adjustments in shareholdings by Lee’s son and Samsung Electronics vice chairman Jay Y. Lee or different members of the family.
The household had been discussing utilizing shares in affiliated firms as collateral for private loans to pay a part of the tax invoice to keep away from the sale of their Samsung holdings, Reuters reported final week, citing sources.
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Analysts have mentioned the household is probably going to make use of loans and dividends from each their very own and Lee’s shares to pay the tax.
Lee’s shareholdings included a 4.18% stake in Samsung Electronics, 0.08% of Samsung Electronics most well-liked shares, 20.76% of Samsung Life Insurance coverage, 2.88% of Samsung C&T, and a 0.01% stake in Samsung SDS.
Samsung C&T is the de facto holding firm of Samsung conglomerate, of which Jay Y. Lee is the most important shareholder with 17.33% stake.
The inheritor is at present midway by means of a 30-month jail sentence for bribery and different offenses. The presidential Blue Home on Tuesday dismissed calls from some enterprise foyer teams to grant him a pardon.
HEALTHCARE AND ART
As anticipated, the household introduced it is going to donate 1 trillion received to enhance public healthcare, together with 500 billion received to construct South Korea’s first specialist hospital for infectious illnesses.
A lot of Lee’s intensive private artwork assortment, together with masterpieces by Picasso, Monet, and Chagall, might be donated to organizations together with the Nationwide Museum of Korea and the Nationwide Museum of Trendy and Modern Artwork, the household mentioned in its assertion.
The remaining works by Giacometti, Rothko, and others might be managed by the household and Leeum Samsung Museum of Artwork, Yonhap information company reported.
Former tradition ministers and artwork teams had earlier referred to as for a brand new legislation to permit the household to donate the artwork in lieu of a few of the tax invoice.