Lee Kun-hee’s family are to pay one of the largest inheritance taxes in the world

Lee Kun-hee, the Chairman of Samsung Electronics Co Ltd passed away on October 25. He made Samsung a giant in smartphones and memory chip manufacturing.

His family is going to pay more than 12 trillion won, which equals $10.8 billion in inheritance tax. It is a tax on the property and money of a person who died. The inheritance tax rate in South Korea is one of the highest in the world. Lee Kun-hee’s family is to pay it in six parts during 5 years. The sum of money to be paid is one of the largest tax bills in the world.

The family members told it was their responsibility to pay all taxes. They will probably use their and Lee’s loans and dividends to pay the tax.

Lee’s shares are 4.18% of Samsung Electronics, 0.08% of Samsung Electronics preferred shares, 20.76% of Samsung Life Insurance Co Ltd and 2.88% of Samsung C&T, and 0.01% of Samsung SDS Co Ltd. Jay Y. Lee, Lee’s son and the Vice Chairman of Samsung Electronics Co Ltd possesses the biggest stake of Samsung – 17,33%. He has been in prison since January for stock manipulation and fraud.

Lee Kun-hee’s family is planning to donate 1 trillion won for medical system development and building a hospital to treat infections. Lee’s art collection will be given to the state – to the National Museum of Korea and the National Museum of Modern and Contemporary Art. Among the paintings, there are ones by Monet, Picasso, and Chagall. The family was allowed to donate works of art instead of some part of the tax.