Due to inheritance tax... Lee Boo-jin secures 100 billion won loan using Samsung Electronics shares as collateral

Lee Boo-jin, President of Hotel Shilla Photo by Yonhap News

[Asia Economy Reporter Jeong Hyunjin] Lee Boo-jin, president of Hotel Shilla and a member of the Samsung family, has secured a loan of 100 billion KRW by pledging Samsung Electronics shares as collateral. This is interpreted as a measure to raise funds for paying inheritance tax incurred during the inheritance process of the late Samsung Chairman Lee Kun-hee's estate.

According to the Financial Supervisory Service's electronic disclosure on the 2nd, President Lee Boo-jin borrowed 100 billion KRW on the 27th of last month from Hyundai Motor Securities by pledging 2,532,000 shares of Samsung Electronics as collateral (pledge rights established). This corresponds to 0.04% of Samsung Electronics' total shares and is valued at approximately 177.4932 billion KRW based on the closing price at that time (71,000 KRW). The pledge period is until January 24 of next year, with an interest rate of 4.00%.

President Lee's loan secured by Samsung Electronics shares is understood to be for paying the inheritance tax imposed during the inheritance process of the late Chairman Lee Kun-hee's estate. The Samsung family, including President Lee, has been raising funds through share sales and loans to pay the inheritance tax on the estate received from Chairman Lee.

Earlier, at the end of April, heirs including Samsung Electronics Vice Chairman Lee Jae-yong, former Leeum Museum Director Hong Ra-hee, President Lee Boo-jin, and Samsung Welfare Foundation Chairperson Lee Seo-hyun inherited shares of major affiliates such as Samsung Electronics, Samsung Life Insurance, Samsung C&T, and Samsung SDS held by Chairman Lee Kun-hee. The total inheritance tax burden on the heirs is known to exceed 12 trillion KRW, with the inheritance tax on shares alone reaching about 11 trillion KRW.

Hong Ra-hee, former director and the largest individual shareholder of Samsung Electronics holding a 2.3% stake, deposited 24,123,124 shares (0.4%) of Samsung Electronics with the Seoul Western District Court in April. On the 5th of last month, she also entered into a securities disposal trust contract with KB Kookmin Bank for 19,941,860 shares of Samsung Electronics.

President Lee Boo-jin also signed a trust contract with KB Kookmin Bank last month for 1,509,430 shares of Samsung SDS (valued at 236.2 billion KRW based on the closing price at that time), and Chairperson Lee Seo-hyun signed trust contracts for 1,509,430 shares of Samsung SDS (236.2 billion KRW) and 3,459,940 shares of Samsung Life Insurance (247 billion KRW). In addition, Chairperson Lee Seo-hyun extended the contract period on the 25th of last month for an 80 billion KRW loan secured by 925,390 shares of Samsung C&T, which she had borrowed from Hana Financial Investment in April.

Vice Chairman Lee Jae-yong also deposited 17.49% of Samsung C&T shares and 9.2% of Samsung SDS shares with the Seoul Western District Court in April. Regarding Samsung Electronics shares, although he initially deposited 42.02 million shares (about 0.7%) at the time of contract signing in April, the contract details have recently been changed to about 0.1%.

The Samsung family plans to pay the inheritance tax using the "installment payment" system as stipulated by law. This system requires paying one-sixth of the total tax upfront, with the remaining five-sixths paid in installments over five years.

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