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| The residence of late Samsung Group Chairman Lee Kun-hee / Screenshot from Kakao Map's Road View |
By Yoon Ja-young
The residence of late Samsung Group Chairman Lee Kun-hee is up for sale. As the bereaved family is subject to inheritance taxes of more than 12 trillion won ($10.6 billion), the money is expected to be used to pay off these.
According to a report by Chosun Biz, the house, located in Itaewon, Yongsan District in Seoul, is being sold for 21 billion won ($18.6 million), about 6 billion won more than the official government evaluation of 15.5 billion won. This "official price," which is used for taxation purposes, is usually lower than the actual market price.
The residence is comprised of two two-story buildings (with basements) - with respective 215 square meters and 150 square meters in areas ― built on a 1,069-square meter site.
The late chairman purchased the residence in October 2010, and, following his death last October, it was inherited jointly by his wife Hong Ra-hee, the former director of the Leeum, Samsung Museum of Art, and their children: Samsung Electronics Vice Chairman Lee Jae-yong, their only son, Hotel Shilla CEO Lee Boo-jin, their older daughter, and Samsung Welfare Foundation Chairwoman Lee Seo-hyun.
The bereaved family has been required to pay one of the world's biggest inheritance taxes ― more than half of what the family members inherited from the late chairman, which includes shares in affiliates such as Samsung Life Insurance, Samsung Electronics and Samsung C&T, as well as real estate, including land at Everland, the largest theme park in Korea. The family has already paid 2 trillion won of the taxes and applied for further payment via installments over the next five years. An annual 1.2-percent interest rate will be applied to the installments. The family is also reported to have borrowed money from banks to pay the taxes. It is estimated that the family is paying around 6 billion won in interest each month.
The residence was one of the five houses the late chairman had in Itaewon and Hannam, including the two most expensive ones in the country. One is estimated to be worth 43.2 billion won ($38.2 million), while the other is valued at 35 billion won ($30.9 million), according to government data.
Itaewon and Hannam are the residential neighborhood of a number of chaebol families, as with Mount Nam behind it and the Han River in front, the area has been regarded as propitious by feng shui experts.
A real estate agent in Hannam said that the homes of chaebol owners are usually not bought and sold through real estate agencies. "They don't use those channels to promote their sale. They have their inner circle and connections, so most of the time their assets are exchanged within their community," he said.
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