Lee Jae-yong, executive chairman of Samsung Electronics. Image Courtesy: Getty Images
The family behind Samsung has completed payment of an $8 billion inheritance tax bill, marking the largest such settlement in South Korea’s history. The payments, spread over five years, were tied to the estate of the late chairman Lee Kun-hee, who passed away in 2020.
The final installment was confirmed by Samsung, bringing the total tax paid to about 12 trillion won. The payments were made in six stages by family members including Lee Jae-yong and his relatives, as reported by BBC News.
South Korea has one of the highest inheritance tax rates globally, set at around 50 percent for large estates. The scale of this particular case was notable, with the tax amount equaling roughly one and a half times the country’s total inheritance tax revenue for 2024.
Lee Kun-hee’s estate was valued at approximately 26 trillion won and included a wide range of assets such as company shares, real estate, and a significant art collection. Some of these artworks, including pieces by Pablo Picasso and Salvador Dali, were donated to national museums and cultural institutions.
The tax settlement had been closely monitored by investors, as it raised questions about whether the family might need to sell shares to meet the obligation, potentially affecting control of the company. However, the structured payment plan allowed the family to manage the liability over time.
Samsung remains a central part of South Korea’s economy, operating across sectors including electronics, construction, finance, and heavy industry. It is one of the country’s largest chaebols, a term used to describe family controlled conglomerates.
In recent years, the company’s market value has been supported by growing demand for semiconductors, particularly driven by the expansion of artificial intelligence technologies. This has contributed to a significant increase in the family’s overall wealth, which is estimated to exceed $45 billion.
The completion of the tax payments closes a major financial chapter for the Lee family, while reinforcing the scale of wealth tied to one of the world’s largest technology companies.
