The heirs of the late Samsung Group chairman Lee Kun-hee have sold a luxury property in central Seoul for 22.8 billion KRW (approximately $17.1 million), in what appears to be part of a broader effort to pay South Korea’s largest-ever inheritance tax bill.
Court records confirm that the villa, located in the upscale Itaewon neighborhood of Seoul’s Yongsan district, was jointly owned by Lee’s widow Hong Ra-hee, honorary director of the Leeum Museum of Art, and their three children: 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 buyer is reportedly a private-sector entrepreneur, though the property title has not yet been formally transferred.
The residence, which sits on approximately 1,073 square meters of land, boasts a total floor area of about 497 square meters spread across three levels.
The late Lee acquired the home in 2010 for around 8.28 billion KRW (6.21 million USD). The recent sale price represents a 175% increase, averaging roughly 70 million KRW (52,500 USD) per pyeong, a traditional Korean land measure equivalent to 3.3 square meters. The property is situated near a cluster of high-end homes informally dubbed the “Samsung family town.”
Following Lee Kun-hee’s death in October 2020, ownership of the property was divided among the four family members in May 2021. Hong received a one-third stake, while each of the three children received two-ninths. Although not publicly listed, reports indicate the family began exploring a sale earlier this year.
This move aligns with a broader financial strategy the Samsung heirs have employed since inheriting an estimated 26 trillion KRW (19.5 billion USD) in assets from Lee’s estate. Under South Korean tax law, they face an unprecedented inheritance tax bill of roughly 12 trillion KRW (9 billion USD). The family is settling this amount over six years through a government-approved installment plan.
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. The recent property sale represents one of the more tangible examples of asset liquidation tied to this effort.
This isn’t the first Itaewon villa the family has sold. In 2023, they finalized the sale of another nearby property also inherited from Lee. That home had been quietly listed in 2021 for 21 billion KRW (15.75 million USD). It changed hands the following year, though the final sale price was not disclosed. Like the latest sale, the property had been originally purchased by Lee in 2010.
South Korea’s inheritance tax, among the highest in the OECD, has a top rate of 50 percent, which increases to 60 percent when company shares are transferred with management control rights. This structure disproportionately impacts family-run conglomerates like Samsung. The tax was first introduced under President Park Chung Hee in the 1960s as part of broader efforts to institutionalize state control over wealth and curb excessive accumulation during the country’s rapid industrialization.
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