Journalist

Lee Hugh
  • Vietnam Mountain Town Turns Social Media Videos Into Millions in Income
    Vietnam Mountain Town Turns Social Media Videos Into Millions in Income Vietnam’s remote mountain communities are drawing attention after earning large sums from YouTube, TikTok and Facebook, according to local media. Residents filmed everyday routines — digging for bamboo shoots, weaving cloth and working fields — and millions watched, reshaping the local economy. Vietnamese outlet Tuoi Tre reported that on May 2 (local time), the People’s Committee of Lam Binh district in Tuyen Quang province announced the official launch of a pilot project to build a “digital content creation village” linked to tourism development. The committee said residents earned about 46 billion dong (about 2.5 billion won) from YouTube, Facebook and TikTok from January through April this year. Personal income tax paid through social media platforms accounted for more than 23% of the commune’s total budget. One of Lam Binh’s best-known examples is a young Dao man, Trieu Man Duong, after photos of him buying a Mercedes-Maybach spread nationwide on Facebook and other platforms in 2023. Duong runs the YouTube channel “Ly Thi Ca.” As of May 3, it had 1.47 million subscribers worldwide. The channel follows the daily life of a mountain girl, Ly Thi Ca, showing cooking, building a home, plowing fields, harvesting crops and selling produce at markets. The videos have attracted viewers beyond Vietnam, including in Russia, Spain, France, the United States and the United Kingdom. The channel has more than 700 videos with total views well above 700 million. ◆ From selling bamboo shoots at market to a village of millionaires Truong Van Quang, chairman of the Lam Binh People’s Committee, said more than 70 high-earning digital content creators live in the commune, contributing more than 23% of the local budget through personal income tax. “In the past, people had to dig for bamboo shoots, pick a handful of vegetables or weave cloth and carry it to market, and sales were limited to what we think of as ordinary retail,” Truong said. “Now the ‘digital economy’ is helping them sell their goods online.” He said terms once considered unbelievable in the area — “millionaire” and “billionaire” — have become reality, with hundreds of households escaping poverty by creating content and building legal wealth through social media platforms. “If people film themselves digging bamboo shoots, making sticky rice, weaving cloth or fishing and upload it to social media, hundreds of millions of people in other places, including overseas, watch,” Truong said. “They value the authenticity and honesty of mountain people and enjoy real, unproduced, simple videos.” The committee estimated that income from digital content production last year would exceed 34.6 billion dong (about 2 billion won), with personal income tax contributions projected at more than 1.5 billion dong (about 85 million won). Lam Binh officials said the gains remain scattered and lack a system, and links to tourism and specialty-product trade are still weak. The pilot project is built on three pillars: a rural digital economy; community tourism tied to smart agriculture and e-commerce; and preservation of ethnic minority cultural identity combined with environmental protection and community education. Local authorities plan to upgrade internet infrastructure, provide equipment for livestream sales of farm products, and support smart-farm projects tied to production and consumption. Plans also include expanding 5G and 6G internet, offering free Wi-Fi in some areas, and creating “digital living spaces” where residents can study and share ideas. Truong said the commune will form a “community core team” by inviting successful young residents to mentor beginners. Working with technical experts, the program will also teach use of basic AI applications on smartphones, video editing and automatic subtitle generation. Lam Binh authorities also stressed that digital content creation requires responsibility, ethics and compliance with laws. They said they will monitor to prevent false information, fraud and content that harms the cultural value of local communities. “We will follow the principle of doing small things firmly first, then expanding,” Truong said. “Only when we are confident it is generating income and building legal wealth will we expand it to the entire commune.”* This article has been translated by AI. 2026-05-03 15:06:35
  • South Korea Financial Regulators Face Key May Decisions on Hong Kong ELS, Lotte Card and Bank Governance
    South Korea Financial Regulators Face Key May Decisions on Hong Kong ELS, Lotte Card and Bank Governance South Korea’s financial industry is on edge ahead of a series of regulatory decisions expected this month, including sanctions tied to mis-selling of Hong Kong H-index equity-linked securities, a customer data leak at Lotte Card, and a broader push to tighten bank governance. While the cases differ, they share a focus on weak internal controls and management accountability, bringing consumer protection and governance responsibilities back into the spotlight. As of Saturday, the Financial Services Commission is expected to place sanctions against banks over the Hong Kong H-index ELS mis-selling on the agenda for its regular meeting on May 13, according to the financial sector. Some had expected the penalty level to be settled around March, but deliberations have dragged on amid concerns about market fallout and possible legal disputes. Key issues include the size of administrative fines and the severity of penalties for executives and employees. At the prior notice stage, the fines were set at 4 trillion won, but they have already been reduced to about 1.4 trillion won. A further large cut could draw criticism for being too lenient, while tougher sanctions could prompt legal challenges from banks. Because the case is one of the largest mis-selling incidents since the Financial Consumer Protection Act took effect, regulators face pressure as the decision could become a benchmark for similar cases. Attention in the card industry is focused on the Lotte Card case. Late last month, the Financial Supervisory Service’s sanctions review committee proposed a heavy penalty of a 4.5-month business suspension over a customer information leak. The final level will be decided after review at an FSC regular meeting. With fewer disputed issues than the Hong Kong ELS case, the process is expected to move quickly once it reaches the FSC agenda. Lotte Card previously received a three-month business suspension in 2014 after a large-scale personal data leak. The latest incident stems from a different cause, but the fact that information security problems have recurred weighed on the proposed penalty. Lotte Card argued for mitigation, citing an external hack and no secondary harm, but the sanctions panel cited inadequate basic security measures, including security patches, as grounds for a heavy penalty. A bank governance overhaul is also a top issue for regulators. A task force has discussed strengthening the responsibilities of outside directors, improving procedures for selecting chief executives, and limiting long-term reappointments. While sanctions address accountability for past incidents, the governance package would reshape decision-making structures across financial firms and could have broader impact. Working-level review at the FSS is largely complete, with only some provisions left for final coordination with the FSC and other bodies. Still, some observers say announcements on high-impact sanctions or reforms could be pushed back until after next month’s local elections. A financial industry official said, “The longer the announcement is delayed, the more uncertainty grows, so we expect the financial authorities to reach conclusions this month,” adding, “Only when the sanction levels and the direction of institutional reforms are clear can financial companies spell out plans to strengthen internal controls and management.”* This article has been translated by AI. 2026-05-03 15:05:19
  • Boryeong-AMA International Motor Festival Aims to Become Asia’s Top Event
    Boryeong-AMA International Motor Festival Aims to Become Asia’s Top Event "Honestly, I came because I love cars. Seeing two race cars drifting together gave me a real adrenaline rush," said Yosep, 26, from Puerto Rico, who attended the 2026 Boryeong·AMA International Motor Festival. On May 2, the area around the Mud Expo Plaza in Boryeong, South Chungcheong province, filled early with engine noise and cheers. At the gymkhana and drifting venues, the sound of tires scraping the pavement rarely let up. Crowds packed the stands for a gymkhana exchange event featuring Asian national team-level drivers from South Korea, Thailand, Singapore and Taiwan. Each time a driver threaded cones and obstacles at speed, spectators erupted. Drivers competed under the same conditions in Toyota Prius hybrid vehicles. Fans also raised smartphones to record drifting demonstrations by popular drivers including Choi Jun. Organizers said the biggest change this year was a stronger focus on hands-on experiences. Instead of simply looking at cars, visitors were encouraged to get in them. The 73,430-square-meter (about 22,000-pyeong) Mud Expo Plaza was lined with vehicles ranging from the latest sports cars to tuned cars and campers. Many visitors sat inside or inspected interiors up close. Kim Si-ho, 17, from Seongnam, Gyeonggi province, said, "It was great to be able to ride in cars you don't usually get to see," adding, "I'm studying an automotive field, and I think it will help with my career path." A Toyota Gazoo Racing (GR) booth in the center of the venue drew steady traffic from motorsports fans, with attention on display models such as the GR86 sports car and a GR Supra stock car. Some visitors also tried a simulator set up separately. At experience booths for advance reservation holders, tire squeal continued throughout the day. Toyota Korea ran slalom, lane-change and drifting programs. In a drifting ride-along with a professional driver, participants felt the car push outward at higher speeds in an understeer moment, then swing into oversteer as the rear slid and the vehicle began circling. Organizers said the GR86's low center of gravity helped keep the spins stable. The Boryeong·AMA International Motor Festival began in 2011 as an on-campus event at Ajou Motor College. It has since grown into a major local festival alongside Boryeong's Mud Festival, becoming a regional signature event within five years of being held around Boryeong Beach. Organizers said more than 140,000 people attended on the first day of the opening ceremony. Ajou Motor College and the city of Boryeong said they want to expand the festival internationally. Park Sang-hyeon, a professor in Ajou Motor College's motorsports program, said the event is widening exchanges with overseas drivers centered on key disciplines such as gymkhana and drifting. "Our goal is to gradually expand the scale and grow it beyond Korea into the No. 1 motor festival in Asia," Park said. This year's gymkhana Asia top-eight exchange event included many drivers from Asian countries including Singapore, Thailand and Taiwan who are active in an organization under the Fédération Internationale de l'Automobile, organizers said. They said they plan to strengthen the event's international competition character through a broader global network. Organizers also said discussions are underway to bring in global brands beyond Toyota, saying participation by major automakers could expand experience programs and raise the event's industrial value. Park said the festival has grown to a global scale with support for grassroots motorsports from Toyota Chairman Akio Toyoda, adding that the number of domestic and overseas manufacturers seeking to participate continues to rise and the event could be larger next year. Boryeong officials also said they want to make the motor festival a core local attraction. Mayor Kim Dong-il said about 200,000 people visited last year's event, generating an estimated 19 billion won in production-inducing effects. "We will foster it as one of Boryeong's two major festivals along with the Mud Festival," Kim said. According to the city, the Mud Festival that opened last July drew about 1.69 million visitors over 17 days and produced an estimated 94 billion won in production-inducing effects. The city said that, measured by impact relative to duration, the AMA International Motor Festival delivered similar results. Ajou Motor College said it is emphasizing its role linking education and industry, with ambitions to boost the region through international exchange. President Han Myeong-seok said students took part in planning and running the event. "This event is a hands-on educational site where students participate in the entire process from planning to operations," Han said. "We will grow it into a platform that connects industry, the region and talent." 2026-05-03 15:03:41
  • Foreign Investors Return to South Korea Stocks in April as Retail Investors Pull Back
    Foreign Investors Return to South Korea Stocks in April as Retail Investors Pull Back Foreign and retail investors moved in opposite directions in South Korea’s stock market in April, with a sharp shift in who was driving flows. Foreign investors, who had warned of “Sell Korea” amid Middle East risks in March, returned to buying, while retail investors cut exposure to both domestic and overseas stocks led by Samsung Electronics. According to the Korea Exchange, foreign investors were net buyers of 1.2319 trillion won on the KOSPI main board in April, excluding ETFs, ETNs and ELWs. That contrasted with March, when they net sold 43.5050 trillion won as money moved toward safe assets after the Middle East situation escalated. Large-cap stocks, including semiconductors, led the rebound in foreign buying. Top net purchases included Samsung Electronics (1.6117 trillion won), Doosan Enerbility (1.1594 trillion won), SK hynix (916.1 billion won), Hyundai Rotem (609.9 billion won) and Samsung SDI (556.7 billion won). With geopolitical risks easing, investors appeared to rotate back into blue chips expected to post stronger results. Retail investors, meanwhile, sold 15.5228 trillion won over the month in what market watchers described as an unusually sharp pause. After absorbing foreign selling in March, individuals net sold 8.5007 trillion won of Samsung Electronics alone in April. Other heavy net sales included Doosan Enerbility (1.6040 trillion won), Samsung SDI (1.3125 trillion won), Hyundai Rotem (937.2 billion won), POSCO Holdings (650.5 billion won) and Hanmi Semiconductor (564.9 billion won). Individuals had been net sellers of 402.4 billion won in January, then turned aggressive buyers in February (4.0351 trillion won) and March (33.5690 trillion won), purchasing more than 37 trillion won of KOSPI shares over those two months. Han Ji-young, a researcher at Kiwoom Securities, said sentiment was pressured by the burden of higher oil prices tied to Middle East risks and the hawkish April Federal Open Market Committee outcome. Still, she said stronger profit momentum and attractive valuations “remain key points that will keep foreign investors’ incentive to buy Korean stocks intact over the medium term.” Lee Jae-man, a researcher at Hana Securities, said sectors that led gains when the KOSPI broke past prior highs in the past tended to keep leading as new highs were formed. With AI-focused infrastructure investment-related shares now driving the market, he advised increasing exposure to leaders expected to see a large rise in operating profit margins next quarter. U.S.-stock trading by South Korean retail investors also shifted toward caution. The Korea Securities Depository said April settlement amounts for U.S. stocks showed sales of $24.21353 billion exceeding purchases of $23.74460 billion, for net selling of about $468.93 million. The reversal ended a buying-dominant trend from January through March and reflected a broader effort by individuals to reduce stock allocations at home and abroad. Industry officials said retail investors, worn down by volatility linked to Trump-related risks and high oil prices, used rebounds to raise cash. * This article has been translated by AI. 2026-05-03 15:00:00
  • Korea Semiconductor Leveraged ETFs Surge, With Top Fund Up Nearly 15-Fold in a Year
    Korea Semiconductor Leveraged ETFs Surge, With Top Fund Up Nearly 15-Fold in a Year Korea’s exchange-traded fund market has been dominated by semiconductor leveraged products, posting outsized gains as expectations for an industry upturn lifted related indexes. Because these ETFs are designed to track twice the daily move of their benchmarks, a sustained rally amplified returns through compounding. According to the Korea Exchange on May 3, semiconductor leveraged ETFs led the performance rankings over the past year (April 30, 2025, to April 30, 2026). The top gainer was TIGER 200IT Leverage, which mainly holds shares such as Samsung Electronics, SK hynix and SK Square. It rose to 328,880 won from 20,865 won, a 1,476.23% return. By simple calculation, a 100 million won investment would now be worth about 1.5 billion won. Its one-month return was also about 130%. TIGER Semiconductor TOP10 Leverage climbed 1,307.10% over the same period, to 59,450 won from 4,225 won. KODEX Semiconductor Leverage jumped 1,222.17%, to 100,485 won from 7,600 won. All three rose more than tenfold, highlighting the explosive payoff structure of leveraged ETFs in a strong uptrend. The gains reflect a broader rise in semiconductor shares, as global big tech companies expanded AI investment and demand for data-center buildouts continued, pushing up earnings expectations. As related indexes moved steadily higher, returns for leveraged ETFs tied to them expanded sharply. The same structure can also magnify losses. Because leveraged ETFs target twice the benchmark’s daily return, choppy markets can produce a “negative compounding” effect that erodes value. If an index repeatedly rises and falls within a range, the ETF can gradually lose principal. Investor caution is also being urged as single-stock leveraged ETFs tied to Samsung Electronics and SK hynix are expected to be launched. With volatility in individual shares directly reflected, the potential for gains increases, but so does the risk of losses. Brokerages have raised target prices on the back of positive results from Samsung Electronics and SK hynix, while also flagging risks. Hana Securities raised its target price for Samsung Electronics to 330,000 won, but said, “Uncertainty over operating profit estimates has increased due to a strike issue related to bonuses, and the stock’s recent price movement has been relatively weak.” Some reports have also downgraded SK hynix. BNK Investment & Securities researcher Lee Min-hee lowered the stock to hold, saying, “Despite the steep increase in earnings, it has entered the late stage of the cycle, and considering a slowdown in momentum in the second half, it is now expected to shift into a low price-to-earnings ratio (PER) stock.” 2026-05-03 14:55:15
  • Seoul Pushes Public Senior Housing at About 2 Million Won a Month, Targeting Middle Market
    Seoul Pushes Public Senior Housing at About 2 Million Won a Month, Targeting Middle Market As South Korea moves deeper into a super-aged society, senior housing is shifting away from care-focused facilities toward residential models that combine housing, support services and leisure. With the emergence of public-type senior housing priced at about 2 million won a month, an underserved “middle market” is beginning to take shape. Industry officials said May 3 that the senior housing market is showing signs of moving beyond a split structure dominated by high-end “silver towns” and public rental housing, as providers develop a wider range of prices and service models aimed at middle-income older adults. Demand is also changing. Many older residents want more than a place to live, seeking arrangements that help maintain quality of life — including meals, cleaning, health management and leisure programs — while allowing independent living in a hotel-like managed setting. According to the Seoul Metropolitan Government, the city has 1.93 million residents age 65 and older, and 77% of them live in homes that are more than 20 years old. But the existing market has been built largely around expensive senior communities, leaving about 490,000 middle-income older adults with few realistic options and a housing gap, the industry said. Seoul’s newly announced public-type senior housing model would provide services such as meals, cleaning and health management for around 2 million won per month. If supply expands as planned, it is expected to absorb demand among middle-income seniors. Until now, the market has been led by luxury developments. “The Classic 500” in Jayang-dong, Gwangjin-gu, Seoul, has remained popular despite a 1 billion won deposit and monthly costs of about 5 million won, with waiting lists stretching for years. “VL Le West” in Magok, Gangseo-gu, has also drawn attention as a high-end model with deposits ranging from 1.2 billion won to 2.3 billion won. Seoul has announced a plan to supply 12,000 units of “Seoul-type senior housing” by 2035 and is seeking to attract private participation through construction financing support, floor-area-ratio incentives and eased public-contribution requirements. Support measures include up to 60 million won in interest-free deposit assistance, zoning upgrades near transit hubs and floor-area-ratio incentives of up to 10%. A report published April 29 in Construction Policy Journal No. 61 by the Korea Research Institute for Construction Policy said senior housing could move beyond a welfare facility model and become a new pillar of demand for the construction and housing markets. Challenges remain even as the market grows. In the report, Lee Ji-a, a deputy research fellow at the institute’s Industrial Policy Research Office, said senior housing policy needs structural change, not just more supply. She called for redefining senior housing as an independent housing type rather than a welfare facility, and for building a dual supply system that combines new construction with age-friendly remodeling of existing homes. She also said incentives such as floor-area-ratio benefits and financial support are needed to ensure project viability. In February, the National Assembly passed a special law on the creation and operation of retirement communities, providing an institutional foundation for developing the senior housing market. The market is expected to further segment into “active senior” housing for healthy people in their 60s and 70s, care-focused models with stronger support functions, and medical-linked “medical residences.”* This article has been translated by AI. 2026-05-03 14:54:17
  • Israel Strikes About 100 Hezbollah Sites in Southern Lebanon Despite Ceasefire
    Israel Strikes About 100 Hezbollah Sites in Southern Lebanon Despite Ceasefire Israel carried out large-scale airstrikes in Lebanon despite a ceasefire agreement, hitting about 100 Hezbollah sites in the country’s south. AFP reported that the Israeli military said in a statement on May 2 (local time) it struck about 70 Hezbollah military facilities and about 50 infrastructure sites across several areas of southern Lebanon, saying it removed threats. The military was reported to have issued evacuation orders to residents of nine villages in southern Lebanon ahead of the strikes. Lebanese media also reported casualties, saying at least three people were killed in the south. Hezbollah, in turn, continued attacks targeting Israeli forces, calling them a legitimate response to what it described as Israel’s ceasefire violations. Hezbollah is widely seen as Iran’s key proxy in the Middle East. Israel has long regarded the group, based in southern Lebanon along its northern border, as its biggest security threat. The clashes escalated on Feb. 28, early in the Iran war, when Hezbollah launched rocket attacks in retaliation for Israel’s killing of Iran’s Supreme Leader Ayatollah Ali Khamenei, the report said. The two sides agreed to a ceasefire on April 17, but have continued to trade accusations of violations as fighting persists. As the situation worsened, Lebanese army commander Rodolphe Haykal met on May 2 (local time) with U.S. Gen. Joseph Clearfield, chair of the ceasefire monitoring committee, during Clearfield’s visit to Lebanon. They discussed Lebanon’s security situation and regional developments and explored ways to improve the effectiveness of the ceasefire monitoring system, reports said. AFP said more than 2,600 people have been killed in Lebanon and more than 1 million displaced over about two months of Israeli airstrikes. Separately, controversy has erupted after reports said a Catholic facility in southern Lebanon was damaged during the strikes. The Israeli military said a house inside a religious compound was damaged during an attack on Hezbollah sites, adding that there were no markings indicating the building was a religious facility. A French Catholic charity group strongly objected, saying the Israeli military destroyed a convent of the Greek Catholic "Sisters of the Savior," which it said works with the organization.* This article has been translated by AI. 2026-05-03 14:40:01
  • Trump administration fast-tracks $8.6B in arms sales to Middle East, reports say
    Trump administration fast-tracks $8.6B in arms sales to Middle East, reports say The Donald Trump administration is moving to fast-track a total of $8.6 billion (about 12.6533 trillion won) in arms sales to Middle Eastern countries, seeking both economic and diplomatic gains as regional demand for air defenses rises after the outbreak of the Iran war. CNN and the Financial Times reported May 2, citing U.S. State Department materials released the previous day, that Secretary of State Marco Rubio approved the sales by bypassing congressional review, citing an “emergency.” The accelerated sales are expected to include Patriot air defense missiles and advanced precision kill weapon systems, or APKWS, as well as the Integrated Battle Command System, or IBCS, for key regional partners including Israel, Qatar and the United Arab Emirates. Rubio said he had determined that an emergency exists requiring immediate sales to the countries and provided detailed justification. He said each sale “is in the national security interests of the United States” and therefore qualifies for a waiver of the congressional review requirement. The State Department said all of the proposed sales support U.S. foreign policy and national security, and would help strengthen the security of strategic regional partners that have been important to political stability and economic development in the Middle East. Since the Iran war began Feb. 28, Iran has carried out indiscriminate attacks on countries across the region, increasing the urgency for air defense and other countermeasures. At the same time, the United States has also drawn down its own missile stockpiles, and deliveries to Europe are expected to slip. The Pentagon has already notified some European countries — including the United Kingdom, Poland, Lithuania and Estonia — that deliveries of certain missiles could be significantly delayed, the FT reported. Separately, the United States and Iran have continued back-channel contacts on a ceasefire. Iran has proposed a new 14-point ceasefire plan that would end the war within 30 days, instead of the U.S. proposal to end it within two months. Trump said he would soon review “the proposal Iran just sent us,” but added that it was hard to imagine it being accepted because, he said, Iran has not yet paid a sufficient price for what it has done to humanity and the world over the past 47 years. 2026-05-03 14:36:16
  • Kim Yong-bum Proposes Three Fixes to Make South Korea’s Financial System More Inclusive
    Kim Yong-bum Proposes Three Fixes to Make South Korea’s Financial System More Inclusive Kim Yong-bum, policy chief at the presidential office, on Saturday proposed three steps to overhaul a financial system he said disadvantages vulnerable groups: strengthening banks’ accountability, improving credit evaluation and redefining the role of lenders focused on low-income borrowers. Kim laid out the proposals in a Facebook post titled “How to reconnect a broken market: Designing finance to connect again.” Referring to two earlier posts criticizing the financial system, Kim said he was not calling for “irresponsible debt forgiveness” or for undermining the credit order. He said the goal was to examine how the current system works and “which segments are being abandoned.” On access to finance for mid- to low-credit borrowers, Kim said the priority is changing a structure in which banks view “avoidance” as a rational choice. He was referring to banks turning away borrowers who can repay, based on existing credit-rating standards. “When finance fears that point and only retreats, what fills the gap is illegal private lending and despair,” Kim wrote. “We have to change this game,” he said, arguing that household lending should not remain confined to the “safe greenhouse” of high-credit borrowers and that the composition of lending needs to shift. Kim also called for expanding what he described as an outdated “frame” for credit scoring. “How long will we keep looking only at past delinquency records or card histories?” he wrote, adding that a lack of financial history does not mean a person lacks the ability to repay. He said the role of institutions providing finance to low-income households should be “reorganized from the beginning.” Kim said the government has provided tax exemptions and support, but in practice the structure has led to more deposits at central federations than loans to members. He added that existing institutions operate on the basis of “relationships among people who know each other.” With labor more mobile, income more dispersed and people more spread out, Kim said what is needed is not simply expanded support but adjustments to the model. Kim said all of his proposals point to one goal: reconnecting broken parts of the market and filling gaps that have been left unattended. He said that raises questions about the role of financial authorities, arguing that inclusive finance is not a separate slogan or program but should come from redesigning the system to respond continuously to ongoing risks and reconnect severed segments. “This is the starting point for moving beyond an era of cruel finance to connected finance,” he wrote. * This article has been translated by AI. 2026-05-03 14:33:18
  • Samsung Family Completes About $12 Trillion Won Inheritance Tax Payment, Renewing Debate on Succession Tax Rules
    Samsung Family Completes About $12 Trillion Won Inheritance Tax Payment, Renewing Debate on Succession Tax Rules The Samsung family has finished paying about 12 trillion won in inheritance tax on the estate of the late Chairman Lee Kun-hee. The payments, made in six installments over five years starting in 2021, conclude what is described as the largest inheritance-tax payment in South Korean history. The case is not only a private matter for a controlling family; it highlights how the inheritance-tax system intersects with corporate succession and the capital markets. Lee’s estate, including stakes in affiliates and real estate, was valued at about 26 trillion won, and the inheritance tax was reported at nearly half that amount, about 12 trillion won. The figure exceeds last year’s total national inheritance-tax revenue of 8.2 trillion won, making it a notable contribution to public finances. Paying legally required taxes is expected, but the size and ripple effects are unusual even by global standards. Inheritance taxes are intended to curb the intergenerational transfer of wealth and improve tax fairness. With asset concentration deepening, the rationale for such a tax remains clear. In South Korea, where concerns about economic concentration are significant, the tax also serves public purposes such as securing revenue and supporting equal opportunity. At the same time, the Samsung case has renewed debate over whether South Korea’s inheritance-tax burden is excessive. When a premium valuation for controlling shareholders is added, the effective tax rate can rise to among the highest in the world. For founder- and owner-led companies whose wealth is concentrated in shares rather than cash, paying the tax can force stock sales, higher dividends or increased borrowing. Over time, that can weigh on management stability and investment capacity. If inheritance taxes weaken corporate competitiveness, the system’s design should be reviewed. Many mid-sized and small companies in South Korea also face succession pressures, with some considering selling the business or shutting down because of inheritance-tax costs. If family firms with strong technology are pushed into foreign ownership or close operations, the broader economy can suffer, the article said, calling it an issue for the entire industrial ecosystem, not only large conglomerates. The answer, however, is not simply cutting taxes. Calls to lower inheritance taxes across the board are unlikely to win broad public support. The challenge is balancing fairness with growth. The article suggested several directions: making payment schedules more flexible for shares transferred for succession under certain conditions, or adjusting burdens in exchange for commitments to maintain jobs and investment; re-examining the rationale for the controlling-shareholder premium, which can be seen as a double burden on top of market-based taxation; and tightening enforcement against abusive gifting and tax avoidance. It called for a system that supports lawful succession while blocking illegal transfers. The Samsung family’s completion of the 12 trillion won payment is likely to be recorded as a case of responsible tax compliance. It also raises questions about how well South Korea’s tax system reflects corporate realities in an era of global competition. The article said countries are revising rules to balance attracting capital, supporting corporate growth and maintaining tax fairness, and argued South Korea should not remain bound to older frameworks. The article said collecting more taxes is not an end in itself; what matters is collecting fairly on a sustainable growth base and using revenue efficiently. It called the Samsung case a starting point and urged politicians and the government to move beyond emotional arguments and begin serious discussions on inheritance-tax reform that considers both corporate succession and national competitiveness.* This article has been translated by AI. 2026-05-03 14:22:46