Samsung Electronics vice chairman Lee Jae-yong is expected to reveal the details of his inheritance this week, and fresh reports from the local media suggest that the heir is looking to finance the inheritance tax with bank loans.
The late Samsung chairman Lee Kun-hee left a fortune in stocks and assets behind when he passed away in October. Lee’s heirs are expected to inherit stocks with a total value of 18.96 trillion won ($17 billion), and they are bound to pay the highest inheritance tax in South Korea’s history, calculated at roughly 11 trillion won ($9 billion). The heirs can reportedly choose to pay the inheritance tax over the next five years after they pay the tax authorities one-sixth of the inherited value.
The heirs are looking at an April 30 deadline for filing the inheritance tax, and in recent news, Lee Jae-yong is now reportedly looking to secure a personal 500 billion won ($450 million) loan for the purpose of financing the inheritance tax.
Lee Jae-yong might appeal to multiple financial institutions
A 500 billion won loan would go down in South Korea’s history books as the highest single personal credit loan, and if someone can obtain it, that someone is Lee Jae-yong. However, industry watchers believe that a single loan of 500 billion won could be seen as preferential treatment by the public, and this may raise concerns.
Because of this, the local media reports that Samsung’s vice chairman is looking to secure multiple loans from different financial institutions. As for the chances of these loans being approved, an unnamed official from the financial sector cited by The Bell claims that there is no reason why banks cannot lend credit as they [the heirs] have excellent personal creditworthiness and cash-generating power, and the use of funds is clear.