Samsung Family to Sell Shares Worth 2.8 Trillion Won in Block Deal

SEOUL — In a major financial move, family members of Samsung Group are set to sell approximately 2.8 trillion won (US$2.12 billion) worth of shares in Samsung Electronics and other affiliates. This sale, taking the form of a block deal, is primarily aimed at facilitating the payment of inheritance taxes, as per information provided by industry sources on Wednesday.

According to Yonhap News Agency, Hong Ra-hee, the mother of Samsung Electronics Co. Chairman Lee Jae-yong, alongside her daughters Lee Boo-jin, CEO of Hotel Shilla Co., and Lee Seo-hyun, chief of the Samsung Welfare Foundation, are leading the charge in this significant transaction. They are expected to sell a combined total of 29.8 million shares in Samsung Electronics, valued at around 2.2 trillion won. The sale will be conducted at a discount of 1.2-2 percent from the closing share price of Samsung Electronics, which stood at 73,600 won on Wednesday. This block deal is anticipated to be finalized before the opening of the stock market on Thursday.

Hong is set to sell the largest portion, offloading 19.2 million shares, equivalent to a 0.32 percent stake in Samsung Electronics. Following her, Seo-hyun plans to sell 8.1 million shares (0.14 percent), and Boo-jin intends to sell 2.4 million shares (0.04 percent). Additionally, the CEO of Hotel Shilla is also looking to sell some of her stakes in other Samsung entities, including Samsung C and T Corp., Samsung SDS Co., and Samsung Life Insurance Co.

This block sale is largely interpreted as an effort to address the inheritance tax obligations, which total 12 trillion won, following the death of the late Samsung Group Chairman Lee Kun-hee in October 2020. Since his passing, the members of the owner's family have been progressively paying off their inheritance taxes in installments, a process that commenced in April 2021 and is spread over a five-year period.