Questions Remain over Samsung Inheritance

29 April, 2021
Questions Remain over Samsung Inheritance
Samsung on Wednesday didn't reveal how much of patriarch Lee Kun-hee's shareholdings in Samsung subsidiaries each heir will probably inherit.

Lee owned 4.18 percent of Samsung Electronics, 20.75 percent of Samsung Life, a controlling 2.88 percent of de facto holding company Samsung C&T, and 0.01 percent of Samsung SDI, worth a complete of around W19 trillion.

The Byzantine ownership structure of Samsung, Korea's most significant conglomerate, signifies that who controls the empire depends upon how those equity stakes will be distributed between Lee's widow Hong Ra-hee, son Lee Jae-yong and daughters Lee Bu-jin and Lee Seo-hyun.

By law, Hong stands to receive W6.3 trillion worth of shares in Samsung affiliates, while the three children each get W4.2 trillion. But an internal source said, "The inheritance had not been divided according to the legal ratio. I’m told that Hong quit her portion." Which means the stakes will be divided by the three children.

Lee Jae-yong is already the new Samsung chief while his sisters have smaller roles in the family empire. The prevailing view is that they reached an agreement to ensure the inherited stakes will secure his control over the conglomerate.

Lee senior didn't leave a will, so 50 percent of the shares are anticipated to visit Lee Jae-yong, as the two daughters get twenty five percent each. Lee Jae-yong already owns a 0.7 percent stake in Samsung Electronics and can end up with almost all of his father's equity in the electronics giant, while the two daughters are anticipated to inherit their late father's stocks in Samsung Life.

Rumor said that the reason the allocation was not announced is that there remains some conflict in the family, but Samsung denied the speculation and said the stake allocation will be announced soon.