The Lee Family owns less than two percent of the total shares of Samsung Group, though they near absolutely control 74 companies “through a web of share holdings.”
However, because of recently enacted regulations and tax laws, the family may lose its influences over the companies. President Park has banned “new cross holdings.” Under current tax law in Korea, heirs have to pay inheritance taxes of 50 percent of the asset value which means that Lee Jae-Yong may have to pay about $6 billion as inheritance taxes.
While the Lees are planning to take two companies public in order to raise money to pay the inheritance taxes, Lee Jae-Yong has faced another challenge.
According to Chung Sun Sup, CEO of Chaebul.com, Lee Jae-Yong “won’t command the same respect and authority that his father has had because he’s largely unproven.” Well we heard this argument, also, with the father. We will update the reader when new developments occur.
The full article may be found at: “Samsung’s First Family Struggles to Keep Grip on Company”
- Samsung Faces Challenges as It Tries to Win Smartphone Wars
- Samsung’s Win Against Elliott is Korea’s Loss According to Bloomberg
- Verdict in latest Samsung/Apple Courtroom Battle
- Samsung Threatens Suit Over Reports of Chairman’s Condition
- Korean Tax Law Amendment Press Release by Korean Government
- Involuntary Dissolution of a Company in Korea: Shareholder Disputes in Korean Companies
- Starting a Company in Korea: Establishing a Foreign Capital-Invested Korean Company, Branch or Liaison Office
- Is Korea’s “Copy Culture” the Largest Threat to the U.S.? On Fox Business
- Rights of “Non-Registered” Shareholders in Korea
- Tax Liability of Controlling Shareholders in a Korean Company: Tax Law Updates