By Baek Byung-yeul
Samsung Group announced Wednesday that the heirs of the late Chairman Lee Kun-hee will pay over 12 trillion won ($10.8 billion) in inheritance tax over the next five years, but did not detail the allocation of his shares in the group affiliates ― including the crown jewel, Samsung Electronics ― to his children.
Given the shares allocation could directly affect the conglomerate s organizational structure, the issue has been of primary concern, and questions are being asked as to why Samsung deferred an announcement on how the late chairman s shareholdings will be divided.
Samsung Group has retained a web-like governance structure linking Samsung C&T, Samsung Life Insurance and Samsung Electronics. The late chairman owned 4.18 percent of the shares of Samsung Electronics, 20.76 percent of Samsung Life Insurance, 2.88 percent of Samsung C&T and 0.01 percent of Samsung SDS.
That s the legacy plan unveiled today by the heirs of late Samsung patriarch Lee Kun-hee.
Lee Kun-hee, who is credited with transforming Samsung into the world s largest smartphone and memory chip maker, died in October last year with an estate valued at around 23 billion dollars.
The Lee family s handling of the hefty inheritance tax bill - one of the largest-ever in Korea and globally - has been closely watched as it could have resulted in the dilution of the family s controlling stake in Samsung.
Our Min Suk-hyen is live in the studio to dig deeper into this story. Good afternoon.
Lee Jae Yong, the Samsung heir, and de facto leader is spending time in jail after he was sentenced to a two and a half year jail term in January of this year. He was convicted in a case related to his bribery activities involving former South Korean president Park Geun Hye.
Business leaders calling for the Samsung chief’s freedom
But it seems that Lee Jae Yong has a chance to shorten his stay in prison as business leaders have started to call for his release. In fact, it was reported last week that business lobby groups have stepped up to ask the government to pardon the controversial Samsung heir.
Family of late Samsung Chair Lee Kun-hee to foot hefty inheritance tax bill trbusiness.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from trbusiness.com Daily Mail and Mail on Sunday newspapers.
Biz community joins calls for pardon of Samsung heir
Posted : 2021-04-27 09:27
Samsung Electronics Vice Chairman Lee Jae-yong / Korea Times file
South Korea s major business lobby groups on Tuesday said they have submitted a petition for the pardon of Lee Jae-yong, the imprisoned de facto leader of Samsung Group, to the presidential office for the sake of the national economy amid a global semiconductor shortage.
The five major lobby groups ― the Korea Chamber of Commerce and Industry, the Korea Enterprises Federation, the Korea Federation of SMEs, the Korea International Trade Association and the Federation of Middle Market Enterprises of Korea ― presented a pardon recommendation letter for Lee to Cheong Wa Dae on Monday, according to them.