Hong Ra-hee to transfer stake worth 2.6 trillion won to son

Share ownership to rise from 1.58% to 1.75%

Samsung Electronics Chairman Lee Jae-yong (left) and Leeum Museum of Art Honorary Director Hong Ra-hee attend an event for a pediatric cancer and rare disease support program at Seoul National University Hospital's children's hospital in Jongno-gu, Seoul, in October 2024. [Samsung Electronics]
Samsung Electronics Chairman Lee Jae-yong (left) and Leeum Museum of Art Honorary Director Hong Ra-hee attend an event for a pediatric cancer and rare disease support program at Seoul National University Hospital's children's hospital in Jongno-gu, Seoul, in October 2024. [Samsung Electronics]

Samsung Electronics Chairman Lee Jae-yong is set to receive 2.6 trillion won ($1.95 billion) worth of Samsung Electronics shares from his mother, Hong Ra-hee, honorary director of the Leeum Museum of Art.

Because the transaction is between family members, the Samsung family's combined stake in the company will remain unchanged. As a gift, however, Lee is expected to face a gift tax bill exceeding 1.5 trillion won.

According to the Financial Supervisory Service's DART system on Tuesday, Lee is scheduled to receive 11.158 million common shares of Samsung Electronics from Hong.

Based on Samsung Electronics' closing price of 233,500 won on Tuesday, the transfer is valued at approximately 2.6 trillion won. The gift agreement was signed Monday, with the transfer scheduled for Nov. 12.

Lee currently holds 105.21 million shares of Samsung Electronics, representing a 1.58% stake. Once the transfer is complete, his holdings will increase to 116.37 million shares, raising his stake to 1.75%. As the transaction is between mother and son, the Samsung family's overall combined stake will not change.

Based on Tuesday's closing price of 233,500 won, Lee's gift tax liability is estimated to exceed 1.5 trillion won. The tax is calculated based on the average share price over the two months before and after the gift date, with the final amount expected to be determined early next year.

Lee also purchased 7.667 million Samsung Electronics shares for approximately 1.92 trillion won through an over-the-counter transaction on Monday.

Hong had earlier announced plans last month to sell Samsung Electronics shares to Lee to repay loans taken out to cover inheritance taxes following the death of late Samsung Group patriarch Lee Kun-hee.


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