Samsung group chairman Lee Kun-hee has died • Hacker News Board

Re: Samsung group chairman Lee Kun-hee has died

#31

Post by LudwigNagasena » Sun, Oct 25, 2020, 3:59 AM UTC

H8crilA wrote: post #19

Anon1096 wrote: post #10

Earlier quoted context omitted.

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.

If it is a single stock it may still affect the price. That’s why big sell-offs are usually done over a long period of time, like weeks.

People also don’t appreciate just how small the capital markets are and how much they rely on market makers.

Re: Samsung group chairman Lee Kun-hee has died

#32

Post by LudwigNagasena » Sun, Oct 25, 2020, 4:01 AM UTC

godelski wrote: post #30

klenwell wrote: post #28

Earlier quoted context omitted.

Or you could have the unintended consequence of zombie executives wandering the earth until it's in their family's economic interest to declare them dead and bury them in the ground.

My understanding is that this only happened in this case because Samsung is "too big to fail" for the Korean economy. Kia, LG, and Samsung combined make up 2/3rds of the economy. Worth watching: https://www.youtube.com/watch?v=jRzysFhyZ8Y (@11:45 they talk about TBTF)

They are too big to fail and that’s why the government wants a single family to control it?

Re: Samsung group chairman Lee Kun-hee has died

#33

Post by smabie » Sun, Oct 25, 2020, 4:05 AM UTC

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!

I don't think zeroing out home equity to buy bonds is a bad idea.

After all, you either have real estate exposure or some other one, bond or equity exposure. While I haven't done the analysis, I would venture to guess that investment grade bonds at the very least have lower volatility than real estate.

Re: Samsung group chairman Lee Kun-hee has died

#34

Post by atombender » Sun, Oct 25, 2020, 4:15 AM UTC

neonate wrote: post #15

notyetcrazymimi wrote: post #3

https://www.nytimes.com/2020/10/24/obituaries/lee-kun-hee-di...

https://archive.is/0bEcU

Not working for me, but this one is: https://beta.trimread.com/articles/45951

Re: Samsung group chairman Lee Kun-hee has died

#35

Post by stanrivers » Sun, Oct 25, 2020, 4:24 AM UTC

smabie wrote: post #33

H8crilA wrote: post #14

Earlier quoted context omitted.

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!

I don't think zeroing out home equity to buy bonds is a bad idea. After all, you either have real estate exposure or some other one, bond or equity exposure. While I haven't done the analysis, I would venture to guess that investment grade bonds at the very least have lower volatility than real estate.

Do you think the investment grade bonds are going to yield better than the interest rate on a home mortgage ?!?

Re: Samsung group chairman Lee Kun-hee has died

#36

Post by jsnk » Sun, Oct 25, 2020, 4:30 AM UTC

_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.

It's quite amazing how some pieces of conspiracy is so readily accepted while some others are vehemently denied to the point where people are sent to jail over it.

Re: Samsung group chairman Lee Kun-hee has died

#37

Post by lostlogin » Sun, Oct 25, 2020, 4:34 AM UTC

_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.

Yikes - I looked and there are rumours from 2015 that this was the case. https://www.koreaobserver.com/lee-kun-hee-dead-alive-health-...

Re: Samsung group chairman Lee Kun-hee has died

#38

Post by lostlogin » Sun, Oct 25, 2020, 4:35 AM UTC

jsnk wrote: post #36

_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.

It's quite amazing how some pieces of conspiracy is so readily accepted while some others are vehemently denied to the point where people are sent to jail over it.

It’s a rumour that would have been easy to disprove if he was well.

Re: Samsung group chairman Lee Kun-hee has died

#39

Post by unishark » Sun, Oct 25, 2020, 5:10 AM UTC

JoshTko wrote: post #20

alexpetralia wrote: post #6

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

50% Inheritance tax would do wonders in the US. Honestly if you want the best people at the top then no one should start with a billion dollar advantage.

I believe in the US it's around 40 percent for billionaires.

Re: Samsung group chairman Lee Kun-hee has died

#40

Post by rgbrenner » Sun, Oct 25, 2020, 5:18 AM UTC

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!

You jest but it could work out. Samsung has more than doubled their share price over the last 4 years. Tripled over the past decade. Additionally you have to consider that retaining the shares may be critical to maintaining control over Samsung. So that would be worth a certain premium. There's still risk, but theres risk in owning any piece of any company.