The sale represents 17.7 million shares, which is roughly 0.3% of the whole company. Samsung said so in official filings late on Friday. The family maintains that they require the funds to cover taxes and repay part of the loans. But those who track Samsung closely say this is actually about paying off a huge tax bill that the family incurred five years ago when the former Samsung chief died.
Lee Kun-hee, the father of Jay Y. Lee, died in 2020. When someone as rich dies in South Korea, their family must pay inheritance tax on all their goods that they leave behind. In this instance, that tax amount was approximately 12 trillion won, which equals about $8.5 billion. That is a lot of money, even for one of the wealthiest families in the nation.
Perfect Timing for a Sale
The timing here is understandable when you see the price of Samsung’s shares recently. The stock has been red-hot this year, rising 84% since the beginning of January. Since just July alone, after Samsung reported it had agreed to supply Tesla with chips, the shares have risen 48%. Currently, Samsung stocks are selling for 97,900 won apiece, nearing the 100,000 won threshold that many speculators have been anticipating.
Samsung has also secured contracts with other massive corporations such as OpenAI, and individuals anticipate they will soon be providing their newest memory chips to Nvidia. It is all this favorable news that has driven the stock price significantly upwards, which makes it a good time for the family to dispose of the same.
How the Sale Will Proceed
The family isn’t doing this on their own. The entire process will be done by Shinhan Bank via a trust scheme. They have until next April to complete the sale of all the shares. The sales will therefore be completed over the next few months in stages, not all at once. Selling in stages prevents crashing the price by putting too many shares onto the market at the same time. Samsung repurchased 10 trillion won worth of its shares last year.
Park Ju-gun, head of a company that examines companies, explains that the buyback was partly intended to support the share price. It’s beneficial to the Lee clan because a stronger share price enables them to sell fewer shares to get their hands on the tax money they require.
Investors Not Happy About It
Not all are elated that the family is selling at present. Park mentions that Samsung is essentially a “national stock” in South Korea. Approximately 5 million ordinary people hold Samsung shares, and they’ve been enthusiastic to see the price increase toward 100,000 won. “One disappointing thing is that the owner’s family is selling shares at this time, which may cool sentiment among retail investors,” Park said. When the controlling family begins to sell, they can make the other investors anxious. They may think that the family knows something terrible is about to happen when really it’s just paying taxes.
What This Means Going Forward
The sale won’t affect who owns Samsung. The Lee family will still have a lot of shares even after selling this tranche. And the funds are going to the banks and government, not into purchasing yachts and mansions. Nevertheless, it is a reminder of how costly it is to inherit a giant corporation in South Korea. The family has been unloading shares incrementally over recent years to try and erode that enormous tax payment. This recent sale is merely another step towards settling what they owe due to Lee Kun-hee’s passing away five years ago.
News At Glance
- The Lee family will sell $1.2 billion worth of Samsung shares via Shinhan Bank by April.
- Funds necessary to settle inheritance tax due to Lee Kun-hee’s passing away in 2020.
- Samsung stock has risen by 84% this year, making it a good time to sell.
- Sale entails 17.7 million shares, equivalent to 0.3% of company total.
- Some investors were disappointed with the family selling during a strong rally period.
Frequently Asked Questions:
- Why is the Samsung family selling shares now?
They require money to finance inheritance taxes from Lee Kun-hee’s demise and pay back loans.
- How much is the inheritance tax bill?
Around 12 trillion won (approximately $8.5 billion) from when the Samsung patriarch passed away in 2020.
- How much has Samsung stock risen this year?
Samsung shares are up 84% in 2025, reaching nearly 97,900 won per share.
- When will the share sale be completed?
Shinhan Bank will handle the sale gradually, finishing by next April.
- Will this change who controls Samsung?
No, the Lee family will still control Samsung after selling this 0.3% stake.
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