Audio By Carbonatix
Speculation is mounting that Samsung could be shaken up after the death of chairman Lee Kun-hee.
Shares in several Samsung businesses rose amid reports that his heirs could be forced into asset sales or dividend payments in order to pay a massive inheritance tax bill.
Mr Lee, who helped to build Samsung into Korea's largest conglomerate, died over the weekend aged 78.
#Afghanistan Hopes of shake-up at Samsung after death of chairman https://t.co/fshsL4rzp5 #Afghanistan
— AfghanistanTest (@AfghanistanTest) October 26, 2020
Analysts say his heirs face billions in taxes from his share assets alone.
That includes his scandal-struck 52-year-old son, Lee Jae-yong, who has managed the sprawling South Korean technology group since 2014.
Lee Jae-yong has twice been accused of fraud over his role in a 2015 merger deal at the tech giant and is currently awaiting trial.
At 50%, Korea's inheritance tax rate is one of the world's highest. A premium can be added to shares if the deceased has a controlling interest in a company, potentially taking the top rate to around 60%.
By comparison, inheritances are taxed at 40% in the UK, and although the top rate is similar in the US, the minimum threshold is set so high that few Americans actually pay it.
Mr Lee was the richest person in South Korea, according to Forbes, with a net worth of nearly $21bn (£16bn).
He took over Samsung in 1987, and introduced radical measures which helped propel the company from a second-tier electronics manufacturer to an international tech giant.
He owned major stakes in the conglomerate's crown jewel Samsung electronics, as well as the holding company Samsung C&T, Samsung Life Insurance and Samsung SDS.
Latest Stories
-
BoG insist banks cut NPLs to 10%
14 minutes -
Morocco, Ghana chart new path for economic and investment cooperation
21 minutes -
US revokes Brazil ambassador’s visa as diplomatic tensions escalate
1 hour -
Trump reiterates his positive portrayal of Iran talks
1 hour -
Meta says AI model accessed the internet and hacked another firm
1 hour -
My mouth will put me into trouble – Miracles Aboagye says he fears for his safety
2 hours -
If we lose free speech, we lose everything – Miracles Aboagye raises democracy concerns
2 hours -
I don’t feel safe, but I love debate – NPP’s Miracles Aboagye says free speech must be protected
2 hours -
South Africa plans new rules on ex-leaders’ foreign trips after Zuma’s visit to India
4 hours -
Justice cannot be selective – Miracles Aboagye questions speed of court cases
4 hours -
We need to keep the judiciary far away from our politics – Miracles Aboagye
5 hours -
Miracles Aboagye claims Judiciary is becoming ‘too close’ to the Executive
5 hours -
Disney agrees deal to let TikTokers use its films and TV shows in videos
5 hours -
Mexican influencer shot dead during livestream
6 hours -
NPP’s Miracles Aboagye questions Judiciary’s handling of some criminal cases
6 hours