The death of Lee Kun-hee, the patriarch behind Samsung Electronics, in 2020 cast a long shadow over the company and its founding family. What followed looked like the start of a storm.
A massive inheritance tax bill loomed over the Lees, one of the largest ever imposed in South Korea. At the same time, the heir apparent, Jay Y Lee, faced prison after a bribery conviction linked to former president Park Geun-hye. For a moment, the empire built over decades seemed at risk of slipping from the family’s hands.
Yet the story did not unfold as many expected. Instead of losing control, the Lees emerged stronger. A surge in semiconductor demand, powered by the global rush into artificial intelligence, lifted Samsung’s valuation. That rise acted like a powerful tide, carrying the family’s fortunes upward. Their combined wealth reached about $45.5 billion by March, more than double the level a year earlier, according to the Bloomberg Billionaires Index. The family now ranks as Asia’s third richest.
How did Lee family overcome inheritance tax burden?
The inheritance tax bill stood at around 12 trillion won, or roughly $8.1 billion. It forced the family into careful financial planning. Some members, including Lee Boo-jin and Lee Seo-hyun, sold shares over time. Their mother, Hong Ra-hee, also reduced holdings.
Jay Y Lee took a different path. He relied on loans backed by his shares and other assets, choosing to protect his voting power rather than sell.
This strategy helped the family maintain control over Samsung. Over five years, they paid the tax in installments. The final payment is due this month, reported Bloomberg. The feared dilution of control never came.
The rebound in Samsung’s stock price made this possible. Shares surged sharply, driven by demand for advanced chips used in data centers and AI systems. The company became a key player in what many call a semi-conductor supercycle. As a result, the family did not need to offload large stakes at unfavorable prices.
Why is Samsung’s rise raising concerns about reforms?
The Lee family’s comeback comes at a time when South Korea pushes for corporate reform. President Lee Jae Myung has made it a priority to reduce the so-called “Korea Discount,” a gap between local company valuations and global peers. His plan focuses on better governance and stronger protection for minority shareholders.
But critics see a contradiction. As stock prices climb and investors enjoy gains, the urgency for deep reform weakens. “At least for the near future, I don’t believe the controlling family has any incentive,” said Sangin Park, a professor at Seoul National University. “The stock price went up so much and the shareholders are so happy.”
Samsung’s growing dominance adds to the debate. The combined revenue of its key affiliates reached nearly one-fifth of South Korea’s GDP in 2025. That marks a sharp rise from a decade ago, reported Bloomberg. The company’s influence stretches across chips, smartphones, and consumer electronics.
Jay Y Lee has also stepped back into public view. Once reserved and cautious, he now appears alongside global and political leaders. During a recent visit to India, he took a selfie with Prime Minister Narendra Modi and President Lee. He has joined overseas trips to major economies and met industry leaders such as Jensen Huang. These appearances signal his firm grip on leadership.
Samsung says it remains committed to shareholders. The company has taken steps such as separating the roles of chairman and CEO and appointing independent directors. It has reduced the number of affiliates and returned cash to investors through dividends and share buybacks. In 2025, it paid a special dividend and canceled shares worth over 14 trillion won.
Still, some investors want more. “What really needs to happen is that management and the board work towards optimizing shareholder value,” said Lee Chang Hwan, CEO of Align Partners Capital Management.