This composite image by Yonhap News TV shows heirs of Samsung Group. From left are Samsung Electronics Vice Chairman Lee Jae-yong, Hotel Shilla CEO Lee Boo-jin and Samsung Welfare Foundation chief Lee Seo-hyun.
SEOUL, April 30 (Korea Bizwire) — Family of the late Samsung Chairman Lee Kun-hee will be borrowing an unprecedented amount from banks to pay for a certain portion of their inheritance tax of 12 trillion won (US$10.8 billion).
For the public, this seems rather unfair, since current restrictions imposed by financial authorities allow banks to lend out no more than 100 million won ($90,000) regardless of income.
Financial sources say that one of the major banks in the country plans to approve credit loans of hundreds of millions of dollars to the Samsung family.
The bank, after receiving a request for a credit loan from the Samsung family, reviewed the request at the highest level of the loans deliberation committee, and recently gave special approval.
Internal rules or other restrictions don’t apply to credit loan requests reviewed by these committees. Interest rates and limits to how much one can borrow can be determined without having to consider the standards.
As long as the borrower is deemed capable of paying back interest and the principal in due time, the bank can alter interest rates as well as borrowing limits.
This is how the loans were approved, despite being the first of their kind in the country’s history.
The Samsung family are reportedly to borrow large sums of money from other major banks as well.
The banks are concerned that this series of loans could lead to controversy over seemingly preferential treatment.
Since November, banks have been focusing on minimizing credit loans not only to regular salaried employees, but also to doctors, attorneys, and other professions, due to pressure from financial authorities.
Regardless of income and credit score, banks have been lending out no more than 100-150 million won.
“No one can question the Samsung family’s income and credit score. Nevertheless, giving out so much money so easily might seem unfair to members of the public, who have been struggling to borrow even as little as 100 million won,” an industry official said.
H. M. Kang (hmkang@koreabizwire.com)
