By Choonsik Yoo and Joyce Lee
SEOUL, April 20 (Reuters) – The household of deceased Samsung patriarch Lee Kun-hee is discussing utilizing shares in affiliated corporations as collateral for private loans to pay a part of greater than $10 billion in inheritance taxes, three monetary business sources with information of the matter informed Reuters.
The loans are a option to repay among the tax invoice with out the household having to promote their intensive Samsung holdings, mentioned one of many sources, the chief government officer of a monetary firm based mostly in Seoul with information of the discussions.
Two different financial institution officers with information of the matter additionally corroborated the household’s discussions, including that a number of banks had lined up for the enterprise as a result of the Lee household, South Korea’s richest, is taken into account an wonderful shopper.
The sources declined to be recognized as a result of the mortgage talks are thought-about confidential.
“The chances are excessive that they are going to preserve the present shareholding construction with out promoting main stakes,” mentioned Kim Soo-hyun, an analyst at Shinhan Funding Corp.
The inheritance tax quantities to about 11 trillion gained ($9.9 billion) for the deceased Lee’s listed shareholdings alone, and the entire taxes for your entire property together with artwork, actual property and money holdings are estimated to be 12 trillion to 13 trillion gained ($10.eight billion to $11.7 billion).
The Lee household is required to report back to the tax authorities the extent of the inheritance and the fee plan by the top of April. Lee died on Oct. 25 with a internet value estimated at about $20.9 billion.
South Korea’s tax code permits fee in instalments, with one-sixth of the entire tax invoice to be paid first, then the remaining over 5 years at an annual rate of interest at the moment set at 1.2%. Even in instalments, greater than 2 trillion gained is predicted due yearly.
“The household has been discussing, for a substantial time frame, stock-backed loans with a number of banks that primarily cope with Samsung corporations,” mentioned the monetary firm CEO.
“I perceive your entire quantity of the inheritance tax isn’t going to be raised like this, however mentioned together with different strategies.”
Dividends the household receives from their very own shareholdings, along with the deceased Lee’s shares, are additionally anticipated to go towards paying the tax, analysts at Mirae Asset Securities and Shinyoung Securities mentioned.
On April 16, Samsung Electronics 005930.KS paid out 13.1 trillion gained in year-end dividends, its largest single dividend payout ever, in line with firm filings. Of this, the Lee household’s portion was greater than 1 trillion gained, together with for Lee Kun-hee’s 4.18% stake in Samsung Electronics, and for son and inheritor Jay Y. Lee’s 0.7% stake.
The youthful Lee is at the moment serving a 30-month jail time period for bribery tied to former President Park Geun-hye.
South Korean enterprise tradition believes there’s advantage in holding management positions inside the founding households of conglomerates, identified within the nation as chaebol, comparable to Samsung.
Due to this, a pro-business foyer group and others have argued for a pardon for Jay Y. Lee so he can resume his function as Samsung vice-chairman.
($1 = 1,115.4800 gained)
(Reporting by Joyce Lee and Choonsik Yoo; Modifying by Jack Kim and Christian Schmollinger)
((jungyoon.lee@tr.com; +82 2 6936 1467;))
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source https://correctsuccess.com/loans/personal-loan/samsungs-lee-family-may-use-stock-as-collateral-for-loans-for-10-bln-tax-sources/
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