Samsung’s Lee Family Completes Record Tax Payment

The Lee family, which controls South Korean giant Samsung, has completed the repayment of a 12tn won inheritance tax bill, equivalent to about $8bn. According to the BBC, it is the largest such payment in South Korea’s history.

The amount is linked to the estate of the company’s late chairman, Lee Kun-hee, who died in October 2020 and left assets worth about $17bn.

The payments were made by Samsung Chairman Lee Jae-yong and other family members in six instalments over five years. Samsung confirmed that the final instalment had been paid, and said the total amount was equivalent to about one and a half times the country’s annual inheritance tax revenue.

South Korea’s inheritance tax rate is 50%, among the highest in the world. Investors followed the process closely because it could have affected the family’s control of the company.

The family also donated some assets, including works by artists such as Pablo Picasso and Salvador Dali, to cultural institutions. According to available data, the family’s combined wealth exceeds $45bn, and its value has risen because of demand for chips used in artificial intelligence.

(max)