Hotel Shilla’s CEO, Lee Boo-jin, is divesting her shares in Samsung Electronics to secure funds for hefty inheritance tax payments. The CEO has consistently been selling stakes in Samsung Electronics and its affiliates as part of her efforts to manage the tax burden.
Lee Boo-jin has initiated the sale of her 5,247,140 shares of Samsung Electronics through off-hours bulk trading, also known as block deals. The shares represent 0.09 percent of Samsung Electronics’ ownership, and the sale will decrease the CEO’s stake from 0.89 percent to 0.8 percent.
The planned selling price per share ranges from 83,700 won to 84,500 won, with a maximum discount of 0.95 percent compared to the previous day’s closing price. The total value of the sale amounts to 443.4 billion won. Citigroup Global Markets Korea Securities Limited has been appointed as the lead underwriter for the block deal.
Last month, Lee Boo-jin entered into a trust agreement with Hana Bank for the disposal of Samsung Electronics shares to repay loans. In January, she also sold stakes in Samsung Electronics and its affiliates through block deals, totaling 558.6 billion won.
The motivation behind these sell-offs is the burdensome inheritance tax imposed on high net worth individuals in South Korea. The country’s highest inheritance tax rate is 50 percent, second only to Japan’s 55 percent. Moreover, the tax rate increases for the largest shareholders who inherit a company, reaching a maximum of 60 percent, which is significantly higher than the average rate among OECD countries.
Lee Boo-jin is not the only member of the Lee family facing this hefty tax burden. Hong Ra-hee, former director of Leeum, the Samsung Museum of Art, Lee Seo-hyun, president of Samsung C&T, and even Samsung Electronics Chairman Lee Jae-yong are all actively managing their assets and utilizing various strategies to fulfill their tax obligations.
In conclusion, the sale of Lee Boo-jin’s Samsung Electronics shares is part of her ongoing efforts to address the substantial inheritance tax she faces. As a prominent figure in the business world, Lee’s actions shed light on the challenges and considerations faced by high net worth individuals when it comes to managing their wealth and inheritance tax obligations.
Hotel Shilla CEO, Lee Boo-jin, has recently divested her shares in Samsung Electronics in order to secure funds for hefty inheritance tax payments. This move is part of her ongoing efforts to manage her tax burden. Lee has been consistently selling stakes in Samsung Electronics and its affiliates to address this issue.
In a recent development, Lee initia