Lee Jae-yong Completes Samsung Share Gift as Estimated Tax Bill Reaches 1.58 Trillion Won

11.158 Million Shares Transferred on November 12

Samsung Electronics Chairman Lee Jae-yong has received 11,158,000 common shares from his mother, Hong Ra-hee, completing a family transfer valued at approximately 2.637 trillion won and carrying an estimated gift tax bill of 1.58 trillion won.

The transfer took place on November 12, 2026, according to ownership disclosures described on November 14. It increased Lee's total Samsung Electronics holdings to 116,377,053 shares, equivalent to 1.75% of issued shares when common and preferred shares are counted together.

A second figure brings his position closer to a widely watched threshold: Lee now owns 1.99% of Samsung Electronics' common shares. Common shares generally carry voting rights, making that percentage particularly relevant to ownership and control.

Hong, honorary director of the Leeum Museum of Art and widow of former Samsung Chairman Lee Kun-hee, transferred existing shares to her son. The family's combined holding stays unchanged, while more of its Samsung Electronics investment sits directly in Lee's name.

The next dates fall in January 2027. The share prices used to value the gift will run through January 12. Samsung Electronics then plans to announce, in late January, how it will use an estimated 55 trillion to 75 trillion won in remaining resources for shareholder returns. Decisions about dividends and share cancellations could affect both cash payments to shareholders and their ownership percentages.

From October Agreement to Completed Gift

Lee and Hong signed the gift agreement on October 12. The plan became public on October 13, with November 12 identified as the scheduled transfer date. Completion follows the timetable set out in the October gift announcement.

The main events span several weeks, with the tax valuation and shareholder return announcement still ahead:

• October 12, 2026: Lee and Hong signed the gift agreement. Lee also completed a separate purchase of Samsung Electronics shares outside the stock exchange.
• October 13: The planned gift of 11,158,000 common shares was disclosed.
• October 29: Samsung Electronics estimated its remaining shareholder return resources at 55 trillion to 75 trillion won.
• November 12: The gift transfer was completed.
• January 12, 2027: The period of share prices used for the gift valuation ends.
• Late January 2027: Samsung Electronics plans to announce how it will distribute the remaining shareholder return resources.

Why Lee's Stake Is Both 1.75% and 1.99%

Lee's ownership disclosure gives two useful measures because Samsung Electronics has both common and preferred shares. Each percentage uses a different total number of shares as its starting point.

His combined holding increased from 105,219,053 shares to 116,377,053 shares, lifting his stake across both classes from 1.58% to 1.75%. The gift therefore added 0.17 percentage points to that measure.

Within common shares alone, his holding rose from 105,081,296 to 116,239,296 shares. Against 5,846,278,608 issued common shares, that represents an increase from approximately 1.80% to 1.99%.

The gift increased Lee's combined shareholding by about 10.6%, calculated by dividing the 11,158,000 shares received by his previous 105,219,053 shares. A relatively small movement in his percentage of the entire company therefore represents a substantial increase in his personal holding.

Hong's stake across the combined share classes was expected to fall from approximately 0.98% to 0.81%. Mother and son remain within the same family ownership group, so the transfer redistributes shares inside that group.

How the Estimated Tax Reaches 1.58 Trillion Won

The estimated gift value uses an average closing price of 236,305 won over the recent two months of trading. Multiplying that price by 11,158,000 shares produces approximately 2.637 trillion won.

Listed shares are valued for this gift using closing prices over the two months before and the two months after the transfer date. The November 12 transfer therefore leaves part of the valuation dependent on prices through January 12, 2027.

The estimated tax calculation applies a 20% valuation premium for shares held by the controlling shareholder group, followed by the top gift tax rate of 50%. In simple terms, a shareholding valued at 100 won becomes 120 won for this calculation, and applying a 50% rate produces 60 won in estimated tax.

Applied to approximately 2.637 trillion won, that method produces about 1.582 trillion won, commonly rounded to 1.58 trillion won. The estimate is roughly 60% of the shares' value before the premium.

Lee's final bill will depend on the completed valuation period and applicable deductions and tax credits. The tax payment arrangements have not been announced.

A Purchase and a Gift Serve Different Purposes

Lee also acquired Samsung Electronics shares through a separate transaction on October 12. The purchase total is given as 7,667,100 common shares for approximately 1.9206 trillion won; the sale from Hong was also described at the time as involving 7,188,793 shares. The completed gift consistently involves 11,158,000 shares.

The larger purchase figure, combined with the gift, puts Lee's increase in common shares over the month at 18,825,100. The purchase transferred money to the seller, while the gift transferred shares without payment and created a gift tax obligation for Lee.

Hong's sale was connected with the financial demands of the estate of Lee Kun-hee. Its purpose was described as repaying borrowing used to meet inheritance tax payments, or securing funds for those obligations.

The family transactions also extend beyond Samsung Electronics. Hong gave Lee her entire stake of approximately 1% in Samsung C&T in December 2025. The latest transfer continues the movement of assets from Hong to her son across companies within the Samsung group.

Why Other Shareholders Keep Their Shares Intact

Samsung Electronics issued no new shares for the gift. Hong transferred shares she already owned, so the transaction leaves the company's issued share count unchanged.

For another shareholder, that means the gift itself leaves both the number of shares they own and their percentage ownership intact. Dilution occurs when a company issues additional shares and an existing investor's holding becomes a smaller slice of the total. Here, the same slice moved from one owner to another.

Samsung Electronics also receives no new cash from the gift. Lee receives the shares, Hong gives them up, and any resulting gift tax is a personal obligation for Lee.

Samsung expected the market effect to be limited because the transfer took place within the family. The immediate change is in the distribution of ownership among relatives, with Lee holding more shares directly and Hong holding fewer.

The Newly Acquired Shares Miss September's Dividend Date

September 30 was the record date for Samsung Electronics' third quarter dividend. A record date determines which shareholders are entitled to receive a particular dividend payment.

Lee acquired the 18,825,100 common shares through the October purchase and November gift after that date. Approximately 86.6 billion won in dividends before tax associated with those shares therefore belongs to the shareholders who held them on September 30.

The timing separates ownership today from entitlement to a payment fixed earlier. A person can receive or purchase a share after a dividend record date while the previous owner retains the right to that dividend.

For Lee, the increase in his holdings gives him a larger position for future distributions, subject to their record dates and the company's decisions. The third quarter dividend on the newly acquired shares remains with the holders recorded in September.

How Share Cancellation Could Lift Lee Above 2%

Samsung Electronics could change ownership percentages through the cancellation of common shares it holds itself. Cancellation removes shares from the issued total, allowing a shareholder with an unchanged holding to own a larger percentage of the remaining shares.

Lee owns 116,239,296 common shares out of 5,846,278,608 issued common shares. With his holding unchanged, cancelling approximately 34.31 million common shares would reduce the issued total enough for his stake to reach 2%.

The calculation is straightforward: 116,239,296 shares represent exactly 2% of 5,811,964,800 shares. The difference between that total and the current issued common shares is 34,313,808.

Cancellation of preferred shares alone would change the combined share count while leaving the common share calculation unchanged. The class of shares involved therefore matters when assessing any future cancellation programme.

Samsung Electronics has scheduled its detailed shareholder return announcement for late January 2027. The estimated 55 trillion to 75 trillion won in remaining resources could be used for cash dividends and share purchases followed by cancellation, with the allocation still to be announced.

Samsung's Insurers Face a Related Ownership Calculation

Samsung Life Insurance, Samsung Electronics' largest shareholder, holds approximately 8.51% of its common shares. Samsung Fire & Marine Insurance holds approximately 1.49%. Together, those rounded figures add up to 10%.

If Samsung Electronics cancels common shares while the insurers retain their holdings, their combined percentage rises because the issued total becomes smaller. The same arithmetic that could lift Lee's stake also applies to these financial companies.

Article 24 of South Korea's Act on the Structural Improvement of the Financial Industry sets approval requirements involving ownership of other companies by financial institutions within the same group. The framework includes prior approval from the Financial Services Commission for acquisitions of at least 20% of voting shares, and provisions involving holdings of at least 5%, 10% or 15% when effective control is recognised.

Any regulatory assessment would depend on the insurers' individual holdings, the relevant control conditions and the circumstances of a transaction. A future cancellation programme would therefore require attention to the ownership positions of both Lee and the financial affiliates.

Samsung's largest shareholder group, including affiliates, family members and other related parties, has been described as holding approximately 19.7% of voting shares. Lee's new personal holding forms one part of that broader structure.

Key Points

• Lee Jae-yong received 11,158,000 Samsung Electronics common shares from Hong Ra-hee on November 12, 2026.
• His combined holding reached 116,377,053 shares, or 1.75% across common and preferred shares. His common share stake is approximately 1.99%.
• The gift is valued at approximately 2.637 trillion won using the recent average price, with an estimated gift tax of 1.58 trillion won.
• The final valuation will include share prices through January 12, 2027.
• The family gift leaves Samsung Electronics' issued share count and the family's combined holding unchanged.
• Dividends associated with the September 30 record date belong to the shareholders who held the shares then.
• Samsung Electronics plans to announce the use of its remaining shareholder return resources in late January 2027. Cancelling approximately 34.31 million common shares would lift Lee's current common shareholding to 2%.