The family of Samsung Electronics Chairman Jay Y. Lee plans to sell 17.7 million shares, valued at approximately 1.73 trillion won ($1.22 billion), representing a 0.3% stake in the company. This move aims to cover inheritance tax obligations and repay loans following the 2020 death of Samsung patriarch Lee Kun-hee. The sale, managed by Shinhan Bank under a trust contract, is expected to be completed by April 2026.

The Lee family’s decision comes as Samsung’s stock has surged over 84% this year, driven by major supply deals with companies like Tesla, OpenAI, and Nvidia. The share price closed at 97,900 won on Friday, nearing the 100,000-won mark. Analysts suggest the family’s sale is strategically timed to capitalize on the high valuation while addressing substantial tax liabilities.

Despite the rationale behind the sale, some retail investors express concerns. Samsung Electronics is considered a “national stock” in South Korea, with approximately 5 million retail shareholders. The family’s sale during a period of strong stock performance may dampen investor sentiment, according to corporate analysis firm Leaders Index.

The Lee family’s efforts to settle the estimated 12 trillion won inheritance tax have included incremental asset liquidations over recent years. While the sale will reduce their direct stake, it is not expected to alter the family’s control over Samsung Group.

In conclusion, the planned sale reflects the Lee family’s strategy to manage substantial tax obligations while maintaining influence within Samsung Group. The market will be closely watching the execution of this transaction and its potential impact on investor confidence.

Source: Reuters.