When Samsung Electronics Stock Price Rises by 1,000 Won, Inheritance Tax Increases by 160 Billion Won

Samsung Electronics Stock Price Rise Causes Late Chairman Lee Kun-hee's Share Value to Surge
Vice Chairman Lee Jae-yong's Inheritance Tax Also Significantly Increases

[Asia Economy Reporter Changhwan Lee] After Samsung Chairman Lee Kun-hee passed away last month, Samsung Electronics' stock price rose by 5,500 won (9.1%), causing the inheritance tax that the owner family, including Vice Chairman Lee Jae-yong, must pay to surge by about 900 billion won.

When the stock price rises by 1,000 won, the inheritance tax increases by more than 160 billion won. The inheritance tax burden has become so heavy that there is an analysis suggesting that the family may have to borrow money to pay the tax or, in the worst case, sell some shares.

According to Samsung Electronics on the 18th, Chairman Lee's shareholding ratio in the company is 4.18%, worth 16.4 trillion won based on the previous day's closing price. This is an increase of about 1.5 trillion won from 14.9 trillion won as of the date of his passing on the 25th of last month, in less than a month. This is because Samsung Electronics' stock price rose about 9.1% from 60,200 won to 65,700 won during the same period.

Although the stock price has risen, the Samsung family’s mood is not bright. The inheritance tax they must pay has also increased significantly due to the stock price rise. South Korea's inheritance tax rate is 50%, with an additional 20% surcharge for major shareholders. Even after applying a 3% voluntary reporting deduction, the inheritance tax payable to inherit Chairman Lee's Samsung Electronics shares as of the 25th of last month amounted to 8.6 trillion won.

Due to the rise in Samsung Electronics' stock price, the inheritance tax based on the previous day's closing price has surged to 9.5 trillion won, an increase of about 900 billion won in less than a month. Stock inheritance tax is calculated based on the average stock price over two months before and after the date of death, and if Samsung Electronics' stock price continues to rise, the inheritance tax burden is expected to increase further.

Samsung Electronics Vice Chairman Lee Jae-yong is entering the Seoul High Court in Seocho-dong on the 9th, where the retrial for the 'state corruption' case is being held. Photo by Moon Ho-nam munonam@

This content was produced with the assistance of AI translation services.