Samsung shares up on dividend hopes

Business | Agencies 27 Oct 2020

Shares of companies that are part of the Samsung Group climbed yesterday amid speculation the family-controlled conglomerate may raise dividends at some units following the death of chairman Lee Kun-hee, to help his heirs raise funds to pay the inheritance tax.

Samsung C&T Corp was up 13 percent at close in Seoul, the biggest gain since 2015, after surging as much as 21 percent. Jay Y Lee, the first son, holds a large stake in the de facto holding company of South Korea's largest conglomerate. Samsung Life Insurance and Samsung SDS rallied 3.8 percent and 5.5 percent, respectively.

Lee Kun-hee's heirs are estimated to have to pay about 10.9 trillion won (HK$760.36 million) in inheritance tax and Samsung Life may raise dividends considering that it holds stakes in Samsung financial units that are generating solid profits, according to Jongwoo Yoo, an analyst at Korea Investment.

Meanwhile, Japan's NEC will replace Huawei to support 5G wireless networks in the United Kingdom, according to the UK's Department for International Trade.

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