Late Samsung chairman’s stock value exceeds $18 billion on November gains

Late Samsung Group Chairman Lee Kun-hee. Yonhap via The Korea Herald/Asia News Network

SEOUL — Boosted by the recent surge in stock prices of Samsung Group affiliates, the stockholding value of the late chairman Lee Kun-hee has surpassed the 20-trillion-won ($18.07 billion) mark for the first time, data showed Tuesday.

According to data compiled by a local corporate tracker Chaebul.com, the accumulated stock value of the late chairman came to some 20.08 trillion won as of Monday, soaring about 14 percent from some 17.62 trillion won at the end of last year. Lee passed away last month after six years of hospitalization.

The late chairman’s stocks have not been passed on to his children and his wife yet as they try to manage the huge amounts of inheritance tax involved. The Samsung family heirs are subject to a 60 percent tax rate on the inherited stocks under the nation’s tax and antitrust rules.

The chairman has remained South Korea’s biggest stockholder since 2009.

The jump in his stockholding value largely attributed to the rising stock prices of Samsung’s key affiliates, particularly crown jewel Samsung Electronics this month.

Samsung Electronics’ stock closed at 66,300 won per share on Monday. It jumped by 17.1 percent from Oct. 30 when it marked 56,600 won per share at the closing bell. Shares of Samsung C&T and Samsung Life Insurance also advanced by 12.2 percent and 8.3 percent to 12,4000 won and 63,200 won, respectively, in the cited period.

Lee held a 4.18 percent stake in the flagship Samsung Electronics, along with another 0.08 percent share in the firm’s preferred stocks. His stakes in Samsung Life Insurance and Samsung C&T were 20.76 percent and 2.88 percent, respectively. Lee also held a 0.01 percent stake in the information technology unit Samsung SDS.

Of the total, Lee’s stock value surged by 15.6 percent from some 17.37 trillion won at the end of October. His only son and Samsung Electronics vice chairman Lee Jae-yong’s stock value also rose by 10.9 percent from end-December to mark nearly 8.15 trillion won as of Monday.

“To put it simply, when Samsung Electronics stock rises by 100 won per share, the amount of inheritance tax increases about 15 billion won. With the calculation, the sharp rise of Lee Kun-hee’s stock value has put more pressure on Lee Jae-yong,” said an industry official who wished to remain anonymous.

“However, it can be good news to investors, thanks to the surge in the shares. As the chance for more allocation to shareholders (to secure funds) increases, the tech giant stock has become more attractive investment destination for stock investors.”