Samsung chief Lee Kun-hee dies
2020-10-25 06:08 pm![[identity profile]](https://www.dreamwidth.org/img/silk/identity/openid.png){kind=small}
waves-of-light.livejournal.com posting in ![[community profile]](https://www.dreamwidth.org/img/silk/identity/community.png){kind=small}
omonatheydidLee Kun-hee, who had transformed Samsung Group into one of the world's major tech giants from a small trading firm, died at a hospital in Seoul on Sunday at age 78, leaving a thorny succession challenge for his children.
The chairman of the flagship Samsung Electronics had been bedridden since May 2014 following a heart attack.
"Chairman Lee passed away on October 25 with his family, including Vice Chairman Jay Y. Lee, by his side. Chairman Lee was a true visionary who transformed Samsung into the world-leading innovator and industrial powerhouse from a local business," Samsung said in a statement
Lee officially inherited the Samsung crown in 1987 at the age of 45 when his father Lee Byung-chull, founder of the present day Samsung Group, died.
In 1993, Lee Kun-hee announced his first trademark business philosophy, the "New Management Initiative," which has been embraced by Samsung like a doctrine to date.
The most famous line from that philosophy, which took shape through nearly three months of meetings with CEOs convened in Europe and Japan, is, "Change everything but your wife and children."
Under his leadership, Samsung has dozens of affiliates, including the world's top smartphone maker, Samsung Electronics Co., and Samsung Life Insurance Co., under its wing.
Samsung Electronics is the world's largest smartphone maker on the back of its Galaxy smartphone lineup and a series of budget phones. The tech giant is also the world's largest memory chipmaker, whose clients include Apple Inc. and other major smartphone vendors, as well as other global tech firms.
Samsung stands at the center of the South Korean economy, with its outbound shipments accounting for over 20 percent of Asia's fourth-largest economy's exports.
The group's assets at 8 trillion won (US$6.9 billion) at the time Lee took the throne and now estimated at well beyond 400 trillion won.
His only son, Jae-yong, is widely expected to take over the rein of Samsung Group, but he has been embroiled in a high-profile succession scandal.
Lee was indicted on charges of accounting fraud and stock price manipulation for the merger of the group's two units to facilitate his succession from his father.
The senior Lee holds a 4.18 percent stake in Samsung Electronics and a 20.76 percent in Samsung Life, and interests in numerous affiliates, with his assets estimated at up to 20 trillion won.
The sheer assets held by the senior Lee means that his heirs may pay hefty inheritance tax, estimated at over 10 trillion won.
Lee is survived by his wife, Hong Ra-hee, and only son, Jae-yong, and two daughters, Boo-jin and Seo-hyun.
Jae-yong currently serves as vice chairman of Samsung Electronics, while Boo-jin leads Samsung's hotel arm, Hotel Shilla Co., and Seo-hyun is in charge of Samsung Welfare Foundation.
Samsung said the funeral will be held in a modest manner with family members.
Samsung chief was wealthiest man in S. Korea
Lee Kun-hee, the late chief of South Korea's top conglomerate Samsung Group, was the wealthiest man in the country, data showed Sunday.
The total value of stocks held by Lee, who died at a Seoul hospital after being bedridden following a heart attack in 2014, stood at 18.2 trillion won (US$16.1 billion) as of Friday, according to the Korea Exchange data.
By company, Lee held a 4.18 percent stake in the conglomerate's crown jewel, Samsung Electronics Co., worth 15 trillion won, 20.76 percent in Samsung Life Insurance Co. valued at 2.6 trillion won, 2.88 percent in construction company Samsung C&T Corp. worth 564.3 billion won, 0.08 percent in preferred shares of Samsung Electronics worth 33 billion won and 0.01 percent in Samsung SDS Co. worth 1.7 billion won.
The total value outshines that of his son and Samsung Electronics Vice Chairman and the group heir Lee Jae-yong, who holds the title as the second-richest man in the country, worth about 7.2 trillion won.
The late Lee's stock value trumps those of other conglomerate chiefs in the country, including Celltrion Group Chairman Seo Jung-jin at 4.49 trillion won, Hyundai Motor Group Honorary Chairman Chung Mong-koo at 4.47 trillion won and SK Group Chairman Chey Tae-won at 2.6 trillion won.
Lee was also one of the wealthiest people in the world, with Forbes estimating his net worth at $20.9 billion, putting him at the 67th spot on the publication's list of billionaires.
The late Samsung Electronics chairman was the only South Korean included on Forbes' current list of the top 100 billionaires.
Late Samsung chief's scions to pay record high inheritance taxes
As Samsung chief Lee Kun-hee passed away, his heirs, including his only son, Jae-yong, and his sisters will shoulder a record high amount of inheritance tax, industry sources said Sunday.
Lee Kun-hee, who led South Korea's top family-controlled conglomerate Samsung Group, died at a hospital in Seoul on Sunday at age 78, leaving behind stock assets of some 18 trillion won (US$15.9 billion).
The senior Lee is survived by his wife, Hong Ra-hee, and only son, Jae-yong, and two daughters -- Boo-jin and Seo-hyun.
The late chairman held a 4.18 percent stake in the flagship Samsung Electronics Co., along with another 0.08 percent share in the firm's preferred stocks.
He held a 29.76 percent stake in Samsung Life Insurance Co., along with 2.88 percent in Samsung C&T Corp., the de facto holding firm of the conglomerate as well.
Lee's stake in Samsung SDS Co. is estimated at 0.01 percent.
Industry sources estimate that his heirs will pay around 10 trillion won as inheritance taxes for just stock assets.
Experts say the late Samsung Group chief's family may choose to pay the taxes over several years. Under South Korean law, they are allowed to make the payment through installments for upward of five years.
The family of LG Group, another conglomerate, earlier decided to pay the taxes over five years as they inherited stakes from their late chief.
Hong, meanwhile, holds a 0.91 percent stake in Samsung Electronics Co., estimated at around 3.2 trillion won.
Samsung Electronics Vice Chairman Lee Jae-yong holds a 0.7 percent stake in the tech giant, along with 17.33 percent shares in Samsung C&T and more stakes in other affiliates, totaling 7.1 trillion won.
Jae-yong's smooth succession in spotlight after Samsung chief's death
The succession of South Korea's top conglomerate, Samsung, by Lee Jae-yong, the only son of late Samsung Group chief, is in the spotlight as the tech behemoth aims to solidify its presence in the smartphone, semiconductor and other business realms with a massive investment plan under his leadership.
Lee Kun-hee, chairman of Samsung Electronics Co. and the group chief, died Sunday at the age of 78 after he was hospitalized for years for a heart attack, ending his 33-year reign of the business empire whose business portfolio ranges from tech and construction to insurance and an amusement park.
Jae-yong, the eldest scion of the late Samsung Group chief, has been spearheading the group's management, serving as the de facto leader of Samsung since May 2014, when his father collapsed due to a heart attack.
In 2018, the country's fair trade watchdog recognized Lee Jae-yong as the chief of the conglomerate.
The 52-year-old Lee, now Samsung Electronics Vice Chairman, has undertaken various aggressive projects to streamline the group's business portfolio, selling its chemical and defense arms to Hanwha Group and Lotte Group. It also acquired U.S.-based Harman International Industries.
Last year, Samsung Electronics unveiled a vision to become the world's No. 1 logic chip maker by 2030 by investing 133 trillion won (US$117 billion) and bolstering its competitiveness in the system LSI and foundry businesses.
Last week, the group's flagship expected its third-quarter profit to be the largest in two years, as its chip business got a boost from U.S. sanctions on Huawei Technologies Co. and its mobile sales bounced back on pent-up demand amid the pandemic.
In its earnings guidance, the South Korean tech giant estimated its operating profit at 12.3 trillion won ($10.6 billion) for the July-September period, up 58.1 percent from a year ago.
The figure also marks Samsung's best quarterly performance since the third quarter of 2018, when it logged an operating profit of 17.5 trillion won.
Samsung estimated its third-quarter sales at 66 trillion won in the three-month period, up 6.45 percent from a year earlier. The figure is also above the market consensus of 64 trillion won.
While Jae-yong has been leading Samsung's core businesses, his sisters have been leading Samsung's businesses in various fields.
Boo-jin, the first daughter of Lee Kun-hee, leads Samsung's hotel arm, Hotel Shilla Co., while Lee Seo-hyun is in charge of the Samsung Welfare Foundation.
As Kun-hee passed away, his scions have to deal with how to pay hefty inheritance tax for his assets.
As of end-June, the late Samsung chief held a 4.18 percent stake in Samsung Electronics, a 2.86 percent stake in Samsung C&T and a 20.76 percent stake in Samsung Life Insurance, among others.
If Lee's family members decide to inherit his stocks, the inheritance tax could be around a jawdropping 10 trillion won, industry insiders said.
But inheriting his father's stock ownership may face some hurdles as Jae-yong is also facing legal battles that could put him in jail again.
The political scandal that led to the impeachment of former President Park Geun-hye, first cast a cloud over him. Amid allegations that Samsung provided bribes to the Park administration, he already served around a year in prison.
Lee was released in February 2018 after an appellate court handed him a suspended sentence, but six months later, the country's top court ordered a review of the suspended sentence.
Last month, prosecutors indicted Jae-yong over his alleged involvement in the merger of the two Samsung affiliates -- Samsung C&T Corp. and Cheil Industries Inc. -- in 2015 and fraudulent accounting of a pharmaceutical unit.
Prosecutors suspect that Lee and the group's top management were involved in a calibrated scheme to intentionally lower the value of Samsung C&T prior to its merger with Cheil Industries so as to facilitate Lee's managerial succession from his father.
In May, Jae-yong made a public apology, saying he will make sure no controversies happen again over his succession issue.
He also made a surprising announcement that he will not pass on management power to his children, hinting that Samsung will move away from the family-run chaebol system.
Samsung is also facing possible changes in its corporate governance structure.
A recent bill proposed by lawmakers would force Samsung Life Insurance to sell its stocks in Samsung Electronics under revised guidelines for the calculation of stock value.
Jae-yong currently controls the group with a cobweb-like ownership structure linking Samsung C&T, Samsung Life Insurance and Samsung Electronics.
But since he holds a very small stake in Samsung Life Insurance and Samsung Electronics, industry insiders speculate that Jae-yong may inherit some of the shares held by his father to get better control of the group.
All I remember about the new heir is that his ex-wife is with Lee Jungjae. I'm surprised he won't be passing the company to his children.
source: Yonhap News 1 2 3 4
The chairman of the flagship Samsung Electronics had been bedridden since May 2014 following a heart attack.
"Chairman Lee passed away on October 25 with his family, including Vice Chairman Jay Y. Lee, by his side. Chairman Lee was a true visionary who transformed Samsung into the world-leading innovator and industrial powerhouse from a local business," Samsung said in a statement
Lee officially inherited the Samsung crown in 1987 at the age of 45 when his father Lee Byung-chull, founder of the present day Samsung Group, died.
In 1993, Lee Kun-hee announced his first trademark business philosophy, the "New Management Initiative," which has been embraced by Samsung like a doctrine to date.
The most famous line from that philosophy, which took shape through nearly three months of meetings with CEOs convened in Europe and Japan, is, "Change everything but your wife and children."
Under his leadership, Samsung has dozens of affiliates, including the world's top smartphone maker, Samsung Electronics Co., and Samsung Life Insurance Co., under its wing.
Samsung Electronics is the world's largest smartphone maker on the back of its Galaxy smartphone lineup and a series of budget phones. The tech giant is also the world's largest memory chipmaker, whose clients include Apple Inc. and other major smartphone vendors, as well as other global tech firms.
Samsung stands at the center of the South Korean economy, with its outbound shipments accounting for over 20 percent of Asia's fourth-largest economy's exports.
The group's assets at 8 trillion won (US$6.9 billion) at the time Lee took the throne and now estimated at well beyond 400 trillion won.
His only son, Jae-yong, is widely expected to take over the rein of Samsung Group, but he has been embroiled in a high-profile succession scandal.
Lee was indicted on charges of accounting fraud and stock price manipulation for the merger of the group's two units to facilitate his succession from his father.
The senior Lee holds a 4.18 percent stake in Samsung Electronics and a 20.76 percent in Samsung Life, and interests in numerous affiliates, with his assets estimated at up to 20 trillion won.
The sheer assets held by the senior Lee means that his heirs may pay hefty inheritance tax, estimated at over 10 trillion won.
Lee is survived by his wife, Hong Ra-hee, and only son, Jae-yong, and two daughters, Boo-jin and Seo-hyun.
Jae-yong currently serves as vice chairman of Samsung Electronics, while Boo-jin leads Samsung's hotel arm, Hotel Shilla Co., and Seo-hyun is in charge of Samsung Welfare Foundation.
Samsung said the funeral will be held in a modest manner with family members.
Samsung chief was wealthiest man in S. Korea
Lee Kun-hee, the late chief of South Korea's top conglomerate Samsung Group, was the wealthiest man in the country, data showed Sunday.
The total value of stocks held by Lee, who died at a Seoul hospital after being bedridden following a heart attack in 2014, stood at 18.2 trillion won (US$16.1 billion) as of Friday, according to the Korea Exchange data.
By company, Lee held a 4.18 percent stake in the conglomerate's crown jewel, Samsung Electronics Co., worth 15 trillion won, 20.76 percent in Samsung Life Insurance Co. valued at 2.6 trillion won, 2.88 percent in construction company Samsung C&T Corp. worth 564.3 billion won, 0.08 percent in preferred shares of Samsung Electronics worth 33 billion won and 0.01 percent in Samsung SDS Co. worth 1.7 billion won.
The total value outshines that of his son and Samsung Electronics Vice Chairman and the group heir Lee Jae-yong, who holds the title as the second-richest man in the country, worth about 7.2 trillion won.
The late Lee's stock value trumps those of other conglomerate chiefs in the country, including Celltrion Group Chairman Seo Jung-jin at 4.49 trillion won, Hyundai Motor Group Honorary Chairman Chung Mong-koo at 4.47 trillion won and SK Group Chairman Chey Tae-won at 2.6 trillion won.
Lee was also one of the wealthiest people in the world, with Forbes estimating his net worth at $20.9 billion, putting him at the 67th spot on the publication's list of billionaires.
The late Samsung Electronics chairman was the only South Korean included on Forbes' current list of the top 100 billionaires.
Late Samsung chief's scions to pay record high inheritance taxes
As Samsung chief Lee Kun-hee passed away, his heirs, including his only son, Jae-yong, and his sisters will shoulder a record high amount of inheritance tax, industry sources said Sunday.
Lee Kun-hee, who led South Korea's top family-controlled conglomerate Samsung Group, died at a hospital in Seoul on Sunday at age 78, leaving behind stock assets of some 18 trillion won (US$15.9 billion).
The senior Lee is survived by his wife, Hong Ra-hee, and only son, Jae-yong, and two daughters -- Boo-jin and Seo-hyun.
The late chairman held a 4.18 percent stake in the flagship Samsung Electronics Co., along with another 0.08 percent share in the firm's preferred stocks.
He held a 29.76 percent stake in Samsung Life Insurance Co., along with 2.88 percent in Samsung C&T Corp., the de facto holding firm of the conglomerate as well.
Lee's stake in Samsung SDS Co. is estimated at 0.01 percent.
Industry sources estimate that his heirs will pay around 10 trillion won as inheritance taxes for just stock assets.
Experts say the late Samsung Group chief's family may choose to pay the taxes over several years. Under South Korean law, they are allowed to make the payment through installments for upward of five years.
The family of LG Group, another conglomerate, earlier decided to pay the taxes over five years as they inherited stakes from their late chief.
Hong, meanwhile, holds a 0.91 percent stake in Samsung Electronics Co., estimated at around 3.2 trillion won.
Samsung Electronics Vice Chairman Lee Jae-yong holds a 0.7 percent stake in the tech giant, along with 17.33 percent shares in Samsung C&T and more stakes in other affiliates, totaling 7.1 trillion won.
Jae-yong's smooth succession in spotlight after Samsung chief's death
The succession of South Korea's top conglomerate, Samsung, by Lee Jae-yong, the only son of late Samsung Group chief, is in the spotlight as the tech behemoth aims to solidify its presence in the smartphone, semiconductor and other business realms with a massive investment plan under his leadership.
Lee Kun-hee, chairman of Samsung Electronics Co. and the group chief, died Sunday at the age of 78 after he was hospitalized for years for a heart attack, ending his 33-year reign of the business empire whose business portfolio ranges from tech and construction to insurance and an amusement park.
Jae-yong, the eldest scion of the late Samsung Group chief, has been spearheading the group's management, serving as the de facto leader of Samsung since May 2014, when his father collapsed due to a heart attack.
In 2018, the country's fair trade watchdog recognized Lee Jae-yong as the chief of the conglomerate.
The 52-year-old Lee, now Samsung Electronics Vice Chairman, has undertaken various aggressive projects to streamline the group's business portfolio, selling its chemical and defense arms to Hanwha Group and Lotte Group. It also acquired U.S.-based Harman International Industries.
Last year, Samsung Electronics unveiled a vision to become the world's No. 1 logic chip maker by 2030 by investing 133 trillion won (US$117 billion) and bolstering its competitiveness in the system LSI and foundry businesses.
Last week, the group's flagship expected its third-quarter profit to be the largest in two years, as its chip business got a boost from U.S. sanctions on Huawei Technologies Co. and its mobile sales bounced back on pent-up demand amid the pandemic.
In its earnings guidance, the South Korean tech giant estimated its operating profit at 12.3 trillion won ($10.6 billion) for the July-September period, up 58.1 percent from a year ago.
The figure also marks Samsung's best quarterly performance since the third quarter of 2018, when it logged an operating profit of 17.5 trillion won.
Samsung estimated its third-quarter sales at 66 trillion won in the three-month period, up 6.45 percent from a year earlier. The figure is also above the market consensus of 64 trillion won.
While Jae-yong has been leading Samsung's core businesses, his sisters have been leading Samsung's businesses in various fields.
Boo-jin, the first daughter of Lee Kun-hee, leads Samsung's hotel arm, Hotel Shilla Co., while Lee Seo-hyun is in charge of the Samsung Welfare Foundation.
As Kun-hee passed away, his scions have to deal with how to pay hefty inheritance tax for his assets.
As of end-June, the late Samsung chief held a 4.18 percent stake in Samsung Electronics, a 2.86 percent stake in Samsung C&T and a 20.76 percent stake in Samsung Life Insurance, among others.
If Lee's family members decide to inherit his stocks, the inheritance tax could be around a jawdropping 10 trillion won, industry insiders said.
But inheriting his father's stock ownership may face some hurdles as Jae-yong is also facing legal battles that could put him in jail again.
The political scandal that led to the impeachment of former President Park Geun-hye, first cast a cloud over him. Amid allegations that Samsung provided bribes to the Park administration, he already served around a year in prison.
Lee was released in February 2018 after an appellate court handed him a suspended sentence, but six months later, the country's top court ordered a review of the suspended sentence.
Last month, prosecutors indicted Jae-yong over his alleged involvement in the merger of the two Samsung affiliates -- Samsung C&T Corp. and Cheil Industries Inc. -- in 2015 and fraudulent accounting of a pharmaceutical unit.
Prosecutors suspect that Lee and the group's top management were involved in a calibrated scheme to intentionally lower the value of Samsung C&T prior to its merger with Cheil Industries so as to facilitate Lee's managerial succession from his father.
In May, Jae-yong made a public apology, saying he will make sure no controversies happen again over his succession issue.
He also made a surprising announcement that he will not pass on management power to his children, hinting that Samsung will move away from the family-run chaebol system.
Samsung is also facing possible changes in its corporate governance structure.
A recent bill proposed by lawmakers would force Samsung Life Insurance to sell its stocks in Samsung Electronics under revised guidelines for the calculation of stock value.
Jae-yong currently controls the group with a cobweb-like ownership structure linking Samsung C&T, Samsung Life Insurance and Samsung Electronics.
But since he holds a very small stake in Samsung Life Insurance and Samsung Electronics, industry insiders speculate that Jae-yong may inherit some of the shares held by his father to get better control of the group.
All I remember about the new heir is that his ex-wife is with Lee Jungjae. I'm surprised he won't be passing the company to his children.
source: Yonhap News 1 2 3 4
![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
no subject
Date: 2020-10-26 03:11 am (UTC)no subject
Date: 2020-10-26 09:09 am (UTC)no subject
Date: 2020-10-26 12:33 pm (UTC)no subject
Date: 2020-10-26 01:46 pm (UTC)