The family behind South Korean giant Samsung has just completed the payment of a staggering inheritance tax bill which has set a new record for the largest in the country’s history.
Now the owner of the gargantuan estate of late patriarch Lee Kun-hee, chairman Lee Jae-yong and his family were ordered to pay an eye-watering 12 trillion won (A$11.3 billion) over five years in six instalments.
The fortune he left behind was vast, totalling about 26 trillion won (A$24.6 billion). It included a trove of shares, property and a major art collection.
At the time, the family remained diplomatic in the face of the unfathomable invoice, simply stating that “paying taxes is a natural duty of citizens”.
Samsung confirmed the final payment this week, revealing the sum was roughly one and a half times of South Korea’s total inheritance tax revenue for 2024.
The bill was closely watched, with concerns it could weaken the family’s grip on the sprawling conglomerate, which spans electronics, construction, finance and heavy industry.
Part of the estate — which included works by Pablo Picasso and Salvador Dalí — was donated to the National Museum of Korea.
Despite the massive payout, the Lee family’s wealth has surged. Their net worth now tops $62 billion, boosted by booming demand for AI chips driving up the value of the institution.
Samsung is a bit more than just an electronics company to the nation of 50 million. The global tech behemoth has long served as a symbol of the country’s success through extremely trying periods during the mid-20th century.
The period was often referred to as the “Korean Miracle”, spawning a voracious work culture in which thousands of budding salarymen would compete for a chance to work at a company that helped put their nation on the map.
Landing a job at Samsung is widely seen as a career-defining achievement, representing both financial stability and, in some cases, social status.
Where tax bills are concerned, the Lee family’s cheque pales in comparison to others.
Across the world, governments have chased sums far beyond the Samsung case. The European Commission once ordered Apple to pay €13 billion (A$21 billion) in back taxes, while Russia hit oil giant Yukos with claims topping $27 billion in a case that ultimately brought the company down.
More recently, global tech firms like Google have faced multibillion-dollar settlements across Europe as governments crack down on complex tax arrangements.
A bumpy ride for Samsung heir
The leadership of Samsung has not been without its fair share of controversy. In 2017, Lee Jae-yong found himself the centre of one of the country’s biggest corporate scandals in an ordeal that would capture the world’s attention.
Lee was caught up in the explosive corruption case that brought down former president Park Geun-hye, accused of bribery and embezzlement linked to a wider influence-peddling network.
Prosecutors alleged Samsung funnelled tens of millions of dollars to entities connected to the president’s inner circle, in exchange for government backing of a controversial merger seen as key to cementing Lee’s control over the company.
He was first jailed in 2017, released on appeal the following year, then sent back to prison in 2021 after South Korea’s top court ordered a retrial.
He was later paroled after serving part of his sentence.
In a separate case, Lee faced allegations of accounting fraud and stock manipulation tied to the same merger, but was acquitted in 2024 — a decision prosecutors have since challenged.
The saga laid bare the close ties between South Korea’s powerful family-run conglomerates and political elites, raising ongoing questions about corporate governance at the very top of the country’s export-heavy economy.
