 |
| Late Samsung Group Chairman Lee Kun-hee, center, attends the 2010 Consumer Electronics Association (CES) in Las Vegas with his family members. / Yonhap |
Samsung Group's market cap grew by 348 times during 27 years under chairman's leadership
By Anna J. Park
Having long been the richest person in Korea based on his equities of the family-controlled global conglomerate, the late Samsung Chairman Lee Kun-hee left behind about 18.2 trillion won ($16.1 billion) worth of shares as he passed away.
The deceased chairman owned various Samsung stocks, including 4.18 percent of Samsung Electronics shares, 20.76 percent of Samsung Life, 2.88 percent of Samsung C&T and 0.08 percent of preferred stocks of Samsung Electronics as well as 0.01 percent of Samsung SDS. The shares' total value stood at about 18.2 trillion won as of last Friday's closing.
His son, Samsung Vice Chairman Lee Jae-yong, is now the second-richest person in Korea in terms of stock ownership with about 7.2 trillion won worth of stocks. The Lee family's stocks are maintaining an overwhelming lead over other conglomerate chiefs, such as Celltrion Group Chairman Seo Jung-jin at 4.49 trillion won, Hyundai Motor Group Honorary Chairman Chung Mong-koo at 4.47 trillion won and SK Group chief Chey Tae-won's 2.6 trillion won.
With Lee's passing, his heirs ― his wife Hong Ra-hee, his son Lee Jae-yong, his first daughter Hotel Shilla CEO Lee Boo-jin and his second daughter Samsung Foundation head Lee Seo-hyun ― are expected to pay over 10 trillion won of inheritance tax for the stock assets alone.
Under Korea's inheritance law, the heirs are estimated to pay 60 percent of the inherited stocks' value as inheritance tax and a 50 percent tax rate will be applied to the rest of the inherited assets. Market watchers expect the late Samsung chief's bereaved family members to pay the taxes over several years, as it is allowed to pay the taxes over a five-year installment plan.
Under Chairman Lee's 27 years of leadership until he collapsed back in May 2014, Korea's representative blue-chip Samsung Group's aggregated market cap expanded by a whopping 348 times from 1987 to 2014. Based on Lee's successful management, Samsung's 16 affiliates' total market cap rose to 524.1 trillion won, as of February this year, up by more than 582.4 times in 33 years from just around 900 billion back in 1987.
Market analysts also expect Samsung affiliates' stock prices won't be affected much by Lee's death, as the conglomerate has long been preparing for leadership succession since 2014.
![Biden takes office as 46th president [PHOTOS]](http://img.koreatimes.co.kr/upload/newsV2/images/a001_3244e8e107351.jpg/dims/resize/268/optimize)
