Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. Korea, republic of
  4. Korea Stock Exchange
  5. Samsung Electronics Co., Ltd.
  6. News
  7. Summary
    A005930   KR7005930003

SAMSUNG ELECTRONICS CO., LTD.

(A005930)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Samsung's Lee family to pay more than $10.8 billion inheritance tax

04/28/2021 | 04:29am EDT
FILE PHOTO: Samsung Group Chairman Lee reacts during a news conference regarding his resignation at the company's headquarters in Seoul

SEOUL (Reuters) - The family of late Samsung Electronics Co Ltd Chairman Lee Kun-hee said on Wednesday they will pay over 12 trillion won ($10.8 billion) in inheritance tax for his estate and donate his vast private art collection to state curators.

Lee, who is credited with transforming Samsung into the world's largest smartphone and memory chip maker, died on Oct. 25 with an estate local media valued at around 26 trillion won.

The inheritance tax bill - one of the largest-ever in South Korea and globally - has been closely watched due to its potential to dilute the family's controlling stake in Samsung.

The family said it planned to pay the bill over five years in six instalments, starting this month.

"It is our civic duty and responsibility to pay all taxes," the family said in a statement released by Samsung.

The share price of Samsung C&T Corp - the Samsung conglomerate's de facto holding company - dropped as much as 5.5% after the statement, which provided no detail on how Lee's shares would be distributed or sold, nor specifics on how the family planned to fund the payments.

"There was general investor disappointment as no details about how the stakes will be divided were revealed," said analyst Lee Sang-hun at HI Investment & Securities.

Investors will instead need to wait for regulatory filings to discover changes in shareholding by Lee's son and Samsung Electronics' vice chairman Jay Y. Lee or other family members.

The family had been discussing using shares in affiliated companies as collateral for personal loans to pay part of the tax bill to avoid selling Samsung holdings, Reuters reported last week.

Analysts have said the family is likely to use loans and dividends from both their own and Lee's shares to pay the tax.

Lee's shareholding, by value, includes 4.18% of Samsung Electronics, 0.08% of Samsung Electronics preferred shares, 20.76% of Samsung Life Insurance Co Ltd, 2.88% of Samsung C&T, and 0.01% of Samsung SDS Co Ltd.

Jay Y. Lee is the largest shareholder of Samsung C&T with a 17.33% stake.

The heir is currently halfway through a 30-month jail sentence for bribery and other offences. The presidential Blue House on Tuesday dismissed calls from business lobby groups for a pardon.

HEALTHCARE AND ART

In 2008, Samsung announced plans for a large donation to society as Lee stepped down as chairman, after being accused of tax evasion.

On Wednesday, as anticipated, the family said it will donate 1 trillion won to improve public healthcare, including 500 billion won to build South Korea's first specialist hospital for infectious disease.

Much of Lee's $1.76 billion personal art collection, including works by Picasso, Monet and Chagall, will be donated to organisations including the National Museum of Korea and National Museum of Modern and Contemporary Art, the family said.

Remaining works by Giacometti, Rothko and others will be managed by the family and Leeum Samsung Museum of Art, Yonhap news agency reported.

The collection was previously the subject of public calls to keep all of the artwork in South Korea. Last month, former culture ministers and art groups called for a new law to allow the family to donate the art in lieu of some of the tax bill.

Samsung Electronics shares closed down 1% on Wednesday, in line with the KOSPI benchmark stock price index. Samsung C&T ended down 3%.

($1 = 1,111.7700 won)

(Reporting by Joyce Lee and Heekyng Yang; Editing by Himani Sarkar and Christopher Cushing)

By Joyce Lee and Heekyong Yang


© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
SAMSUNG C&T CORPORATION -0.82% 120500 End-of-day quote.-12.68%
SAMSUNG ELECTRO-MECHANICS CO., LTD. -0.32% 156500 End-of-day quote.-12.08%
SAMSUNG ELECTRONICS CO., LTD. 0.28% 70400 End-of-day quote.-13.09%
SAMSUNG LIFE INSURANCE CO., LTD. -0.85% 70400 End-of-day quote.-11.00%
SAMSUNG SDS CO.,LTD. -0.96% 155500 End-of-day quote.-12.89%
All news about SAMSUNG ELECTRONICS CO., LTD.
06:14aSAMSUNG HEAVY INDUSTRIES : Secures Lloyd's Register Approval for Storage Tank, Liquefied H..
MT
05:52aEUROPEAN MIDDAY BRIEFING : Stocks Rise as Evergrande News Lifts Asia
DJ
05:28aSouth Korea Stocks Slightly Slip as Investors Await Q3 GDP Data, Earnings; SK Hynix Add..
MT
04:53aSouth Korea Benchmarks Slightly Decline as Investors Eye Q3 GDP Data, Corporate Earning..
MT
04:35aKAKAO : S.Korea's Kakao Pay prices IPO at top of range to raise $1.3 bln
RE
04:27aSAMSUNG ELECTRONICS : Solidifies Its Brand Value With Top-Five Ranking in Interbrand's Bes..
AQ
04:27aSAMSUNG ELECTRONICS : The People Behind Bespoke - Samsung's Bespoke Home Puts Your Unique ..
AQ
03:57aSTELLANTIS N : Samsung SDI Agree to Form Joint Venture to Produce Lithium-Ion Battery
MT
03:43aSAMSUNG SDI : Starts Test Run of South Korea-based Cathode Manufacturing Facility
MT
12:25aSTELLANTIS N : Samsung SDI to Set Up New Battery Plant in North America
MT
More news
Analyst Recommendations on SAMSUNG ELECTRONICS CO., LTD.
More recommendations
Financials
Sales 2021 275 166 B 234 B 234 B
Net income 2021 39 385 B 33,4 B 33,4 B
Net cash 2021 108 097 B 91,8 B 91,8 B
P/E ratio 2021 11,8x
Yield 2021 2,05%
Capitalization 473 102 B 402 B 402 B
EV / Sales 2021 1,33x
EV / Sales 2022 1,15x
Nbr of Employees -
Free-Float 82,7%
Chart SAMSUNG ELECTRONICS CO., LTD.
Duration : Period :
Samsung Electronics Co., Ltd. Technical Analysis Chart | A005930 | KR7005930003 | MarketScreener
Technical analysis trends SAMSUNG ELECTRONICS CO., LTD.
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 39
Last Close Price 70 400,00 KRW
Average target price 98 342,11 KRW
Spread / Average Target 39,7%
EPS Revisions
Managers and Directors
Hyun-Suk Kim Co-President, Co-CEO & Director
Dongjin Koh Co-President, Co-CEO & Director
Kinam Kim President, Co-CEO & Director
Tae Moon Roh Co-President & Head-Research & Development
Hee-Chan Roh Chief Financial Officer
Sector and Competitors
1st jan.Capi. (M$)
SAMSUNG ELECTRONICS CO., LTD.-13.09%400 971
APPLE INC.12.65%2 470 929
XIAOMI CORPORATION-31.93%72 127
WINGTECH TECHNOLOGY CO.,LTD-1.01%19 296
SHENZHEN TRANSSION HOLDINGS CO., LTD.-5.67%17 297
HTC CORPORATION70.73%1 418