"Leading Social Responsibility as Late Father Yeom Wished"… Lee Geonhee's Lifetime Pledge Continues to Future Generations

Returning Over 60% of Entire Wealth... 'A Great Legacy'

the late Lee Kun-hee, Chairman of Samsung

[Asia Economy Reporter Kim Heung-soon] The bereaved family of the late Samsung Chairman Lee Kun-hee announced on the 28th a plan to pay the highest level of inheritance tax in history and to give back to society, which can be recorded as the 'great legacy' of the late chairman who grew Samsung into a truly global company. This is not only because of the success story of the entrepreneur who grew the company about 700 times after taking office as Samsung chairman in 1987, but also because it is regarded as an exemplary case of 'noblesse oblige' (the high moral obligation required of the social elite) by fulfilling social duties and responsibilities even after death.

Inheritance Tax of 12 Trillion Won... World’s Highest Level
Focus on Building Infectious Disease Specialized Hospital and Infrastructure to Overcome COVID-19

The bereaved family plans to pay over 12 trillion won in inheritance tax over six installments within five years starting from April this year, based on shares of affiliates such as Samsung Life Insurance, Samsung Electronics, Samsung C&T, and real estate left by Chairman Lee. This amount is considered the highest level of inheritance tax payment not only domestically but also globally. The family stated, "Paying taxes is a natural duty of citizens and must be done properly." Additionally, 1 trillion won will be contributed to medical donations, along with art donations. Combined, this means Chairman Lee is leaving about 60% of his total assets held during his lifetime to society.

Above all, attention should be paid to the effort to build infrastructure to overcome infectious diseases threatening humanity such as COVID-19 and to treat those suffering from rare diseases.

In particular, among the social contributions, 500 billion won will be used to build Korea’s first infectious disease specialized hospital, the 'Central Infectious Disease Specialized Hospital.' The hospital will be built at a world-class level with 150 beds equipped with advanced facilities including general, intensive care, and high negative pressure rooms, negative pressure operating rooms, and biosafety laboratories.

An additional 200 billion won will be used to expand infrastructure for infectious disease response, including constructing a state-of-the-art research institute and necessary facilities under the National Institute of Infectious Diseases affiliated with the Korea Disease Control and Prevention Agency, and supporting research for the development of infectious disease vaccines and treatments. This reflects the family’s continuation of the late chairman’s special interest in the medical field during his lifetime. The family also plans to continue various social contribution projects in accordance with Chairman Lee’s repeated emphasis on 'corporate social responsibility and coexistence efforts' during his lifetime.

Group Market Capitalization from 1 Trillion to 682 Trillion Won
Not Only a Business Success Story
But Also an Exemplary Noblesse Oblige

When Chairman Lee took office, Samsung had no presence on the global stage and was merely a company that was not even number one in Korea. Upon taking office, he declared, "I will grow Samsung into a world-class top-tier company," and fulfilled that promise. Samsung’s market capitalization, which was 1 trillion won in 1987, grew nearly 700 times to 682 trillion won last year.

The late chairman also pledged at the 10th anniversary memorial service of his predecessor Lee Byung-chul in 1997, "The bereaved family will unite with one mind to inherit and develop the philosophy and ideology of our late father," and "We will take the lead in fulfilling social responsibilities as our late father wished for companies to contribute to the national economy and social development."

Since then, he focused on ways to create a better world based on warm humanity and the philosophy of 'coexistence and co-prosperity' with society. In 2000, he emphasized social responsibility in a media interview, saying, "I always keep in mind that the burial clothes I wear after death have no pockets," and put this into practice. The wealth accumulated during the process of growing Samsung into a global company will be paid as astronomical inheritance tax, thus fulfilling that promise even after death.

The late chairman’s respect for human dignity and philosophy of coexistence are expected to continue through Samsung and the family’s intentions. In particular, Chairman Lee’s great legacy is likely to become the foundation of the ‘New Samsung’ promised by his successor, Vice Chairman Lee Jae-yong of Samsung Electronics. Earlier, at the end of 2019, Vice Chairman Lee clearly expressed his intention to carry on the chairman’s will in his speech commemorating the 50th anniversary of Samsung Electronics, saying, "Sharing together and growing together is the path to becoming the world’s best."

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