Seoul villa belonging to Samsung heirs sold for a staggering W22.8b to cover substantial inheritance tax payment.
In a significant move to meet their inheritance tax obligations, the heirs of the late Samsung Group chairman Lee Kun-hee have sold a luxury property in central Seoul for a record-breaking 22.8 billion won (approximately USD 17.4 billion). The sale, finalized on June 13, marks a 175 percent increase from the home's 2021 listing price of 21 billion won.
The property, located in the affluent Itaewon neighbourhood of Yongsan district, is part of an informal cluster of high-end homes colloquially known as the "Samsung family town." The villa was jointly owned by Lee Kun-hee's widow Hong Ra-hee, 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 residence, spanning about 497 square meters across three levels, was originally purchased by the late Lee in 2010 for approximately 8.28 billion won. The sale price averages roughly 70 million won per pyeong, a traditional Korean land measure equivalent to 3.3 square meters.
The sale of this Itaewon villa is one of the more tangible examples of asset liquidation tied to the family's efforts to meet their tax obligations. In fact, since 2021, the heirs have taken various steps to meet their tax obligations, including selling shares in Samsung affiliates and securing loans using stock as collateral.
Roughly 12 trillion won in inheritance taxes is owed by the heirs, an unprecedented amount under South Korean tax law. This high tax liability is due to South Korea's inheritance tax system, which has a top rate of 50% and increases to 60% when company shares are transferred.
The late Lee's estate is estimated to be worth 26 trillion won in assets. Hong Ra-hee received a one-third stake, while each of the three children received two-ninths. The family is paying the inheritance taxes over six years through a government-approved installment plan.
Interestingly, this is not the first Itaewon villa the family has sold. In 2023, they finalized the sale of another nearby property also inherited from Lee. The Samsung heirs have been pursuing a larger financial strategy to meet their tax obligations since inheriting the estate.
The buyer of the villa is a private-sector entrepreneur, but their identity has not been disclosed. The sale of this luxury property is yet another step in the Samsung family's ongoing efforts to address their substantial inheritance tax obligations.
The sale of the Itaewon villa, previously jointly owned by members of the Samsung family, marks another step in their ongoing efforts to address their substantial inheritance tax obligations, as seen in their liquidation of various assets, including shares in Samsung affiliates and the sale of other high-end homes in the area. This financial strategy seeks to fulfill their tax obligations, with the proceeds from the villa contributing to the repayment of an estimated 12 trillion won in inheritance taxes, given the top tax rate of 50% on personal assets and 60% on company shares in South Korea.
