Samsung Electronics Shares worth $1.1 Billion Sold in Block Deal

Samsung Electronics shares worth $1.1 billion were sold in a block deal, according to a document, which some analysts have held responsible to the Samsung conglomerate’s controlling family raising cash in order to meet a big tax bill.

Approximately, 19.9 million Samsung shares were sold by Kookmin Bank at 68,800 won per share, a discount of 2.4% Wednesday’s closing price of 70,500 won.

But the number of shares offered for sale is commensurate with the amount that Hong Rahee, mother of Samsung Electronics Vice Chairman Jay Y. Lee and wife of the late Samsung patriarch Lee Kun-hee, agreed to hold trust with Kookmin Bank in October. , according to a Samsung Electronics filing.

Ever since the death of patriarch Lee in 2020, the controlling family of Samsung has decided to use shares in affiliated companies to pay part of more than $10 billion in inheritance tax. 

The tax code allows for payments in instalments, where one-sixth of the total is payable upfront, the rest over five years with annual interest. Even in instalments, analysts expect more than 2 trillion won ($1.64 billion) to be paid each year.