SEOUL, South Korea: Members of Samsung's founding family plan to sell 1.73 trillion won (US$1.22 billion) worth of shares in Samsung Electronics, cashing in on a soaring stock price as they move to cover inheritance taxes and loans tied to the estate of late patriarch Lee Kun-hee.

According to a regulatory filing, Hong Ra-hee, widow of the former chairman, and her daughters Lee Boo-jin and Lee Seo-hyun will sell about 17.7 million shares, representing a 0.3 percent stake in the South Korean tech giant.

The sale will be managed by Shinhan Bank under a trust agreement and is expected to be completed by April 2025, the filing said.

Analysts said the move reflects the Lee family's ongoing efforts to secure funds for their 12 trillion won inheritance tax bill, one of the largest ever in South Korea, following Lee Kun-hee's death in 2020.

"Samsung's 10 trillion won share buyback plan last year was aimed at protecting the stock value, which would help the Samsung family secure funds for inheritance tax," said Park Ju-gun, head of corporate analysis firm Leaders Index.

He added that with Samsung shares now nearing 100,000 won, the family likely sees this as the right moment to finalize payments. "One disappointing aspect is that the owner family is selling shares at a time like this, which could dampen sentiment among retail investors," Park said.

Samsung Electronics' shares have surged more than 84 percent this year, supported by renewed optimism around its semiconductor business and a flurry of new supply deals in the booming AI chip market. The stock rose 0.2 percent to 97,900 won on Friday.

The company's shares have climbed 48 percent since announcing a chip-supply deal with Tesla in July and have also gained from supply agreements with OpenAI and expectations that it will soon deliver its latest high-bandwidth memory (HBM) chips to Nvidia.

Industry watchers say the family's timing, while strategic, carries symbolic weight given Samsung's status as a cornerstone of South Korea's economy.

"Samsung Electronics is practically a ‘national stock,' owned by about five million retail investors who have been eagerly watching the shares approach the 100,000-won mark," Park said. "The family's sale could weigh on investor sentiment in the short term."