Samsung heirs finish $8bn tax payment as wealth doubles

The founding family of Samsung Group has completed its payment of a 12 trillion won ($8 billion) inheritance tax bill, marking the largest such settlement in South Korean history. The payment, made in six installments over five years, stemmed from the estate of late Chairman Lee Kun-hee, who died in October 2020. Lee Kun-hee left behind a fortune valued at approximately 26 trillion won, including shares, real estate and art collections. Chairman Lee Jae-yong, along with his mother Hong Ra-hee and sisters Lee Boo-jin and Lee Seo-hyun, fulfilled the obligation, with Samsung confirming Sunday that the final payment had been made. The Lee family's combined net worth has more than doubled over the past year, reaching approximately $45.5 billion as of March, according to the Bloomberg Billionaires Index. The surge in wealth has been driven by an AI-driven semiconductor rally that lifted Samsung Electronics shares by 126 percent over the past year, their strongest performance in more than two decades. The family described paying the tax as a "natural duty of citizens" and pledged full compliance upon filing in April 2021. They funded the payments through a combination of dividend income, selling stakes in non-core affiliates and stock trust agreements, while Lee Jae-yong largely avoided selling shares in core units, relying instead on personal loans and dividends to maintain and increase his holdings in key affiliates. The market rally has enabled the family to meet its obligations while actually expanding control over the conglomerate. Lee Jae-yong's stake in Samsung Electronics common shares has risen to 1.67 percent from 0.70 percent, while his stake in Samsung C&T increased to 22.01 percent from 17.48 percent. Samsung's economic footprint has also grown, with combined revenue at seven key affiliates accounting for 19.3 percent of South Korea's GDP last year. The family has also expanded its philanthropic efforts, including pledging 1 trillion won toward medical facilities and donating more than 23,000 artworks, including national treasures, to the state.