Samsung Chairman Lee Jae-yong to Get $1.8 Billion Stake From Mother
Samsung Electronics Chairman Lee Jae-yong is set to receive a massive 2.6 trillion won stake from his mother, Hong Ra-hee, boosting his control.
In a massive move that reshapes the ownership structure of the global tech giant, Samsung Electronics Chairman Lee Jae-yong is set to receive a windfall of shares from his mother, Hong Ra-hee. The transfer, valued at approximately 2.6 trillion won (USD 1.8 billion), will significantly bolster Lee's direct stake in the conglomerate.
A Massive Shift in Ownership
According to an official regulatory filing disclosed on Tuesday, Hong Ra-hee—who serves as the honorary director of the Leeum Museum of Art—will transfer 11.16 million shares to her son. Based on the recent closing price of 232,000 won per share, this transaction represents a staggering 0.17 per cent stake in the firm.
This transfer follows closely on the heels of another major transaction. Just one day prior, Lee acquired 7.19 million Samsung Electronics shares from Hong through an off-market deal worth nearly 1.92 trillion won (USD 1.43 billion). That specific sale was reportedly intended to help Hong secure the liquidity necessary to meet her tax obligations.
The Numbers Behind the Transfer
The upcoming equity shift will see a significant change in the holdings of both Lee and his mother:
- Lee Jae-yong's Holdings: Currently, Lee possesses 105.22 million shares (a 1.58 per cent stake). Following the transfer on November 12, his total holdings will climb to 116.38 million shares, bringing his stake to 1.75 per cent.
- Hong Ra-hee's Holdings: Her personal stake in the company will decrease from 0.99 per cent to 0.82 per cent.
Tax Implications and Market Impact
While the transfer strengthens Lee's position, it comes with a heavy price tag in taxes. The gift tax for this transaction will be calculated based on the average closing share price over the two months before and after the transfer date. While tax authorities will finalize the exact amount early next year, estimates based on Tuesday's closing price suggest a tax levy of approximately 1.55 trillion won (USD 1.16 billion).
Despite the eye-watering figures, industry observers suggest that this movement of shares will have a minimal impact on the broader stock market. Because the shares are simply moving between members of the founding family, the aggregate ownership remains largely unchanged. However, for Lee Jae-yong, the move is strategic, as it expands his direct equity and reinforces his administrative control over the Samsung empire.