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| The late Samsung Electronics Chairman Lee Kun-hee, center, is with his family members at the Consumer Electronics show held in Las Vegas, in this 2010 file photo. To his left is Hotel Shilla CEO Lee Boo-jin, and to his right is Samsung Welfare Foundation chief Lee Seo-hyun. Seen behind him are Samsung Electronics Vice Chairman Lee Jae-yong and the late chairman's wife Hong Ra-hee. Courtesy of Samsung Group |
By Yoon Ja-young
Hotel Shilla CEO Lee Boo-jin, the eldest daughter of the late Samsung Group Chairman Lee Kun-hee, reportedly borrowed 100 billion won ($84.65 million) to pay part of her huge inheritance tax bill.
According to a filing with the Financial Supervisory Service (FSS), Lee borrowed 100 billion won from Hyundai Motor Securities, Oct. 27, providing her 2.532 million shares in Samsung Electronics ― 0.04 percent of the total company stock ― as collateral. The loan is due Jan. 24 next year, and it has an interest rate of 4 percent.
Lee Boo-jin and her family have borrowed 1.7 trillion won so far, which is estimated to incur around 5 billion won in monthly interest payments.
The late chairman, who passed away in October last year, is reported to have left around 26 trillion won, around 60 percent of which will be returned to society through taxes and gifts. The bereaved family is subject to around 12 trillion won in taxes on what they inherited, including shares worth 19 trillion won.
Lee Boo-jin is estimated to pay 2.6 trillion won in inheritance tax; while her brother, Samsung Electronics Vice Chairman Lee Jae-yong, the only son of the late chairman, is estimated to owe 2.9 trillion won; and their sister Lee Seo-hyun,?chief of the Samsung Welfare Foundation, 2.4 trillion won. Their mother Hong Ra-hee, the widow of the late chairman, will pay 3.1 trillion won in tax.
To pay the unprecedented inheritance tax, the family has started the process of selling shares. Earlier last month, Hong, who is the largest individual shareholder of Samsung Electronics, with a 2.3 percent stake, signed a trust contract with KB Kookmin Bank to sell 19,941,860 of her shares. She also borrowed 1 trillion won from other banks and securities companies, providing Samsung Electronics shares as collateral. Hotel Shilla CEO Lee also signed a contract with the bank to sell her Samsung SDS stock, while Lee Seo-hyun sold her shares in Samsung Life Insurance and Samsung SDS. The value of the stock that the bereaved family started selling in October totals 2 trillion won.
They chose to pay the inheritance tax over a five-year period after making an initial payment of one-sixth of the total in April. They made the second payment last month.
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