Samsung shares rose in price after the death of the former head of the company

The stocks of Samsung's member organizations rose the day after the death of former head of the group Lee Gong Hee. Investors are counting on companies to pay increased dividends to help a businessman's family with a hefty inheritance tax.

The former head of Samsung owned a stake in the company worth about $16 billion and was the richest man in South Korea with a fortune of about $20 billion. Inheritance taxes in Korea can reach 65%, the Financial Times . notes This means that the Lee family will have to pay up to $10.4 billion to the state in order to inherit the businessman's assets and retain control of the country's largest company. By law, the payment of tax can be extended over five years.

"Samsung's stock is rising as the group's divisions are likely to pay higher dividends to help the family pay their inheritance tax," Park Joo-gyong, head of research at CEO Score, told the FT.

Samsung C&T jumped 21% on Monday. The insurance division of Samsung Life - by 15.7%. Shares of Samsung BioLogics, Samsung SDS and Samsung Engineering rose in price.

Lee Gun Hee died in South Korea on October 25 at the age of 78. It was he who made the world's largest manufacturer of smartphones, TVs and memory cards out of the Korean company. Li was treated for lung cancer back in the 1990s, and in 2014 suffered a heart attack, after which he stepped down from the management of the company. The heir to the empire will be his only son, Lee Jae-young, who has actually been running Samsung since 2014.