Samsung heirs sell Seoul villa for US$16mil to help pay record inheritance tax bill
SEOUL: The heirs of the late Samsung Group chairman Lee Kun-hee have sold a luxury property in central Seoul for 22.8 billion won (US$16 million), in what appears to be part of a broader effort to pay South Korea's largest-ever inheritance tax bill.
According to data from the Ministry of Land, Infrastructure and Transport's official property transaction database, the sale was finalised on June 13.
Court registry records confirm that the villa, located in the Itaewon neighbourhood of Yongsan district, was jointly owned by Lee's widow Hong Ra-hee, honourary director of the Leeum Museum of Art, and their three children: Lee Jae-yong, executive chairman of Samsung Electronics, Lee Boo-jin, president of Hotel Shilla, and Lee Seo-hyun, president of Samsung C&T's fashion division.
The buyer is believed to be a private-sector entrepreneur. As of now, the property title has not been formally transferred.
The residence sits on 1,073sq m of land and spans about 497sq m in total floor area across three levels.
The late Lee purchased the home in 2010 for approximately 8.28 billion won. The recent sale price marks a 175 per cent increase, averaging roughly 70 million won per pyeong, a traditional Korean land measure equivalent to 3.3sq m. It is located near a cluster of high-end homes informally known as the 'Samsung family town.'
Following Lee Kun-hee's death in October 2020, the property was divided among the four family members in May 2021.
The widow Hong received a one-third stake, while each of the three children received two-ninths. Although the home was not publicly listed, reports suggest the family began exploring a sale earlier this year.
The timing aligns with a larger financial strategy the Samsung heirs have pursued since inheriting an estimated 26 trillion won in assets from Lee's estate.
Under South Korean tax law, roughly 12 trillion won in inheritance taxes is owed, an unprecedented amount. The family is paying it over six years through a government-approved installment plan.
Since 2021, the heirs have taken various steps to meet their tax obligations. These include selling shares in Samsung affiliates and securing loans using stock as collateral. The recent property sale is one of the more tangible examples of asset liquidation tied to this effort.
This is not the first Itaewon villa the family has sold. In 2023, they finalised the sale of another nearby property also inherited from Lee. That home had been quietly listed in 2021 for 21 billion won.
It changed hands the following year, though the final sale price was not disclosed. Like the latest sale, the property had been originally purchased by Lee in 2010.
South Korea's inheritance tax, among the highest in the OECD, has a top rate of 50 per cent, which increases to 60 per cent when company shares are transferred with management control rights.
It is a structure that disproportionately impacts family-run conglomerates like Samsung. The tax was first introduced under President Park Chung Hee in the 1960s as part of broader efforts to institutionalise state control over wealth and curb excessive accumulation during the country's rapid industrialisation. - The Korea Herald/ANN
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