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Samsung group chairman Lee Kun-hee has died

reuters.com

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Re: Samsung group chairman Lee Kun-hee has died

#11

Post by dereg »

stanrivers wrote: post #8
alexpetralia wrote: post #6

This reminds me of this tweet: https://twitter.com/oniontaker/status/1214540491577942017

Wow - "Enter Korean tax code. Korea has 50% inheritance tax on assets above $2.5m. When Lee Gunhee dies, his family will owe the government $7b. The family will have to sell personal stakes of Samsung-controlled assets, weakening the strong, complex investment structure they built." That's pretty impactful in terms of potentially forcing the family to sell off control, isn't it?

I don't think that's the right way to think about this situation. The fact that Lee Kun-Hee is dead means that the family's efforts to restructure the company, consolidate power, and offshore assets is complete. Elliot Management called out Samsung five years ago for malfeasance but their efforts were stymied by a government led by the former disgraced president, Park Geun Hye.

Re: Samsung group chairman Lee Kun-hee has died

#12

Post by AmericanChopper »

_nqj4 wrote: post #7

Accordingly to my Korean colleagues, he has been in a coma since 2014 and has been just the chairman in name. There are no pictures of him after 2014.

According to many he’s been dead since then, and his heir has just been trying to keep it all hidden because SK’s inheritance taxes could threaten the family’s majority stake in the business.

Re: Samsung group chairman Lee Kun-hee has died

#13

Post by maest »

stanrivers wrote: post #8
alexpetralia wrote: post #6

This reminds me of this tweet: https://twitter.com/oniontaker/status/1214540491577942017

Wow - "Enter Korean tax code. Korea has 50% inheritance tax on assets above $2.5m. When Lee Gunhee dies, his family will owe the government $7b. The family will have to sell personal stakes of Samsung-controlled assets, weakening the strong, complex investment structure they built." That's pretty impactful in terms of potentially forcing the family to sell off control, isn't it?

I'd expect them to be able to finance paying the taxes with an equity collateralised loan. If not the entire tax bill, at least a big chunk of it.

Re: Samsung group chairman Lee Kun-hee has died

#14

Post by H8crilA »

maest wrote: post #13
stanrivers wrote: post #8

Earlier quoted context omitted.

Wow - "Enter Korean tax code. Korea has 50% inheritance tax on assets above $2.5m. When Lee Gunhee dies, his family will owe the government $7b. The family will have to sell personal stakes of Samsung-controlled assets, weakening the strong, complex investment structure they built." That's pretty impactful in terms of potentially forcing the family to sell off control, isn't it?

I'd expect them to be able to finance paying the taxes with an equity collateralised loan. If not the entire tax bill, at least a big chunk of it.

Seems that more leverage and more debt is in fact the answer to everything. BRB, need to take a second mortgage to buy more equity index funds. I will then use the fund shares as a collateral for another loan, and you get the idea. I wonder why hasn't anyone thought of it yet! Time for a YC application!

Re: Samsung group chairman Lee Kun-hee has died

#16

Post by H8crilA »

AmericanChopper wrote: post #12
_nqj4 wrote: post #7

Accordingly to my Korean colleagues, he has been in a coma since 2014 and has been just the chairman in name. There are no pictures of him after 2014.

According to many he’s been dead since then, and his heir has just been trying to keep it all hidden because SK’s inheritance taxes could threaten the family’s majority stake in the business.

So is this the heir "buying the dip"? Staging the death at the moment in which the inheritance is likely to have the lowest market value?

Re: Samsung group chairman Lee Kun-hee has died

#18

Post by sushshshsh »

H8crilA wrote: post #14
maest wrote: post #13

Earlier quoted context omitted.

I'd expect them to be able to finance paying the taxes with an equity collateralised loan. If not the entire tax bill, at least a big chunk of it.

Seems that more leverage and more debt is in fact the answer to everything. BRB, need to take a second mortgage to buy more equity index funds. I will then use the fund shares as a collateral for another loan, and you get the idea. I wonder why hasn't anyone thought of it yet! Time for a YC application!

It's only stupid if it doesn't work!

Re: Samsung group chairman Lee Kun-hee has died

#19

Post by H8crilA »

Anon1096 wrote: post #10
stanrivers wrote: post #8

Earlier quoted context omitted.

Wow - "Enter Korean tax code. Korea has 50% inheritance tax on assets above $2.5m. When Lee Gunhee dies, his family will owe the government $7b. The family will have to sell personal stakes of Samsung-controlled assets, weakening the strong, complex investment structure they built." That's pretty impactful in terms of potentially forcing the family to sell off control, isn't it?

What happens if they aren't able to sell off the assets at a high enough price to pay the inheritance tax? Does the amount owed scale with how much the assets are actually able to fetch in a mass sell-off like this?

There is absolutely no problem with liquidating a $7B slice of equity in a matter of weeks (probably even days). People don't appreciate just how enormous the capital markets are.
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