[Infostock Daily= Reporter An Hoe Hyun] Korea Investment & Securities maintained the investment opinion 'Buy' and its target stock price of 81,000 won, respectively, on Samsung Electronics on the 26th, saying that it could use dividends in its holdings and personal financing methods of family members as a way to raise inheritance taxes amid Chairman Lee Kun-hee's death.
"Chairman Lee Kun-hee's stake in Samsung Group's major affiliates is 41.8% of Samsung Electronics, 20.76% of Samsung Life Insurance and 2.9% of Samsung C&T, and the total value of these shares is 18.2421 trillion won," the company said, adding, "How the stake will be inherited to the family is the most important variable in Samsung Group's governance structure."
"The inheritance tax applied is about 10.9 trillion won, and even if the family pays in installments six times over the next five years, they will have to pay about 1.8 trillion won in inheritance tax every year," the company said, adding, "Although funding is not a big task, we can expect a policy to expand dividends to finance the inheritance tax."
Korea Investment & Securities predicted that there will be no significant change in maintaining control of Samsung Electronics as a result.
"Samsung Electronics' shareholder return policy will end this year and the new shareholder return policy will be decided soon," the company explained, adding, "It is hard to predict how the new shareholder return policy will be decided, but the shareholder return is likely to be expanded further, which is expected to have a positive impact on Samsung Electronics' stock price."
Reporter An Hoe Hyun ahh@infostock.co.kr
