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Key Samsung units surge as succession issue looms following group chief's death

09:58 October 26, 2020

SEOUL, Oct. 26 (Yonhap) -- Shares in Samsung Group's key affiliates traded higher Monday on expectations that they may increase dividend payouts to help the late Samsung chief's scions secure funds to pay record high inheritance taxes.

Samsung Group chief Lee Kun-hee died Sunday at age 78, more than six years after being hospitalized for a heart attack.

Shares in three Samsung affiliates held by the late group chief spiked in the morning session as investors bet that the senior Lee's death may facilitate a revamp of the governance structure at key affiliates, and his only son and group heir, Lee Jae-yong, will secure his grip on the country's largest conglomerate down the road.

Industry sources said the late Samsung Electronics chairman's scions may have to pay 10 trillion won (US$8.85 billion) in inheritance tax.

Tech giant Samsung Electronics, the group's crown jewel, traded 0.17 percent higher as of 9:32 a.m., Samsung C&T, the group's de facto holding company, jumped 14.42 percent, and Samsung Life Insurance, which holds a stake in Samsung Electronics, rose 6.66 percent.

As of end-June, the late chairman held a 4.18 percent stake in Samsung Electronics, a 2.86 percent stake in Samsung C&T and a 20.76 percent stake in Samsung Life Insurance, among others. The value of his stock holdings is estimated at some 18 trillion won.

Jae-yong, the de facto chief of the group, holds a 0.7 percent stake in Samsung Electronics, 17.33 percent in Samsung C&T and more stakes in other affiliates, with the combined value of his stock holdings totaling 7.1 trillion won.

Samsung C&T serves as the de facto holding firm of the group by controlling a 4.4 percent stake in Samsung Electronics and 19.34 percent interest in Samsung Life Insurance.

Key Samsung units surge as succession issue looms following group chief's death - 1

sooyeon@yna.co.kr
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