Hong Ra-hee to Sell 0.11% Stake in Samsung Electronics to Chairman Lee Jae-yong in KRW 1.9 Trillion Deal

Off-Market Transaction Scheduled for October 12
Lee Jae-yong's Stake to Rise from 1.47% to 1.58%
Loan Repayment for Inheritance Tax Payment

Hong Ra-hee, former director of the Leeum Museum of Art, will sell approximately KRW 1.9374 trillion worth of Samsung Electronics shares to her son, Lee Jae-yong, chairman of Samsung Electronics. As the Samsung owner family has continued to dispose of shares to raise funds for inheritance tax, this transaction is also interpreted as a means to repay loans incurred during the inheritance tax payment process.

According to the Financial Supervisory Service's electronic disclosure system on September 9, Chairman Lee announced that he plans to purchase 7,188,793 common shares of Samsung Electronics in an off-market transaction from former director Hong on October 12. The planned transaction price is KRW 269,500 per share, calculated based on Samsung Electronics' closing price on September 8. The transaction amounts to approximately KRW 1.9374 trillion, equivalent to 0.11% of Samsung Electronics' total outstanding shares.

Upon completion of this transaction, Chairman Lee's holdings of Samsung Electronics shares will increase from 97,551,953 shares to 104,747,746 shares. His ownership stake will rise by 0.11 percentage points from 1.47% to 1.58%.

On the afternoon of November 28 last year, at the Navy Officer Candidate School parade ground in Jinhae-gu, Changwon-si, Gyeongnam, during the 139th Navy and Marine Corps officer candidate graduation and commissioning ceremony, Samsung Electronics Chairman Jay Y. Lee and former Leeum Museum of Art Director Ra-hee Hong are taking a commemorative photo with newly commissioned Second Lieutenant Jiho Lee. Photo by Yonhap News.

Since the passing of the late Lee Kun-hee, former chairman of Samsung, former director Hong has sold her shares in companies including Samsung Electronics to secure funds for the approximately KRW 12 trillion in inheritance tax. Earlier, in April this year, she also disposed of 15 million shares of Samsung Electronics.

This transaction is similarly interpreted as being aimed at securing funds to repay loans incurred as part of the inheritance tax payment process. However, Samsung Electronics has not issued any official comment on the matter, stating that it is a transaction between major shareholders.

Notably, this transaction will be conducted as an 'off-market purchase' rather than a direct on-market sale. As the large volume of shares will not be released directly into the market, the impact on the market is expected to be minimal.

This content was produced with the assistance of AI translation services.