The family of Chairman Lee Kun-hee, the late owner of Samsung Electronics, said it will pay more than $10.8 billion in inheritance tax and will donate his sizable private art collection to charity following the tycoon’s death.
“It is our civic duty and responsibility to pay all taxes,” the family said in a statement released by Samsung on Wednesday, announcing that they will pay over 12 trillion won ($10.8 billion) in inheritance tax over five years in six instalments, starting this month.
Chairman Lee Kun-hee, who died on October 25, 2020, had an estate valued at around 26 trillion won ($23.3 billion), according to local media. He was credited with turning Samsung into the world’s largest memory chip and smartphone maker.
The inheritance tax bill is the largest ever in South Korea’s history and the family’s discussion has been keenly watched by the market as investors wonder what the family will do with Lee’s shares and controlling stake in Samsung.
Wednesday’s statement was reportedly met with disappointment as it gave no details about how Lee’s share in the conglomerate would be divided. Shares in Samsung C&T Corp fell by around 3% following the statement. There was also no information concerning how the family would pay the tax bill.Heir, Jay Y. Lee, is currently serving a 30-month jail sentence for bribery and embezzlement. A call for the 52-year-old to be pardoned was turned down.
The family also announced on Wednesday that it would be donating one trillion won to improve public healthcare, including 500 billion to build the country’s first specialist facility for infectious diseases.
The National Museum of Korea and National Museum of Modern and Contemporary Art will be the recipients of most of Lee’s $1.76 billion personal art collection. The collection includes works by Picasso, Monet and Chagall.
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