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Samsung heir Lee Jae-yong becomes richest stockholder in S. Korea with inherited shares Updated: 2021-05-04 05:02:19 KST

(Seoul)

(Seoul) -


Samsung Electronics de facto leader Lee Jae-yong has now become the richest stockholder in South Korea, following his inheritance of part of his father's stocks
The late chairman of Samsung Group left his wife and three children nearly 21 billion dollars worth of shares across four major entities in the chaebol business.
But this massive fortune also came with the biggest inheritance tax in South Korea's history, 12.5 trillion won or 10.8 billion dollars.
This is a bill too big for even the country's richest family. We'll be discussing, how they'll be splitting both the bill and the stocks -- and what this means for the future of Korea's corporate empire.
For this, we have Dr. Cho Dong-sung, Professor Emeritus of Strategy at Seoul National University Business School/
We also connect with Dr. Tony Michell, Managing Director, Korea Associates Business Consultancy Ltd, who authored Samsung Electronics: And the Struggle For Leadership of the Electronics Industry.


1. Dr. Cho: The Lee family paid one sixth of their inheritance tax last week, and plan on paying the rest over the next five years. 10.8 billion dollars. Just how massive is the scale of this inheritance tax and where are they going to get the money?

2. Dr. Cho: Among Samsung's various entities, the Lee family split the inherited shares according to the proportions set by law, except for shares of Samsung Life Insurance. How was this calculated?


3. Dr. Michell: Mr. Lee Jae-yong is now the richest stockholder in Korea but he's also in prison after being sentenced to two and a half years for embezzlement. How will Lee Jae-yong's ongoing legal issues affect the future of Samsung Electronics? What are the risks and can he solidify his leadership?

4. Dr. Cho: Your thoughts on this.


5. Dr. Michell: I understand that you also teach Change Management at KDI School. - from that perspective, do you think Samsung's ownership and governance structure is competitive in this day and age, or is it overstretched as an empire? What kind of changes do you hope to see in the family-owned business?


7. Dr. Michell: Your book Samsung Electronics: And the Struggle For Leadership of the Electronics Industry published 11 years ago still rings true today. Samsung Electronics has been a fast follower and is now a strong market contender in hardware but it appears to be struggling to strengthen software. What are the biggest challenges the company will face as we see more and more emerging technologies and platforms arising, not only from traditional IT giants but entrepreneurs as well.

8. Dr. Michell: What should it invest in to streak ahead of global competition in software? Does Samsung Electronics need to reinvent itself?

That was Dr. CHO Dong-sung, Professor Emeritus of Strategy at Seoul National University Business School, and Dr. Tony Michell, Managing Director, Korea Associates Business Consultancy Ltd.
Thank you for your insights today.
Reporter : osy@arirang.com
KOGL : Korea Open Government License
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