Are the Son and Daughters of Samsung Chairman Lee Eligible to Take over from Their Father?
Are the Son and Daughters of Samsung Chairman Lee Eligible to Take over from Their Father?
  • By Kwon Hyuk-dong (atom@koreaittimes.com)
  • 승인 2014.05.19 22:48
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Samsung Group Chairman Lee Kun-hee’s health condition went from bad to worse. He was rushed to a hospital near his Seoul home and received cardiopulmonary resuscitation (CPR) and was later transferred to Samsung-affiliated hospital Samsung Medical Center, where he underwent a stent placement procedure. He is now reportedly in recovery.

Kwon Hyuk-dong, Editorialist of Korea IT Times

Since Lee Kun-hee had not been in good health, the news of him being hospitalized did not come as a big surprise. Due to his failing health, Samsung has been run under the so-called “system management structure.” Samsung Group, accounting for 18% of the nation’s GDP and 21% of the total export value, has been carrying tremendous influence on the S. Korean economy. Though Samsung claims that systems are in place to ensure the smooth, seamless operation of Samsung Group without Chairman Lee’s deep involvement, the absence of the group’s top commander raises uncertainties over the future of Samsung Group.

Foot-dragging over new investments is highly likely. And the process of making a decision on strategic but high-risk investments, which requires the top commander’s determination, could stall. Above all, as the information communications industry has been going through rapid changes, a couple of false steps in the decision making process and a few missed market opportunities could push the company out of the market. Cases in point are Nokia and Japan’s electronics industry, which was once the world’s No.1. As of now, the global market conditions are unfavorable, so Samsung could end up following in the footsteps of Nokia.

Meanwhile, Samsung’s transfer of managerial control from Chairman Lee to his children is likely to speed up. There has already been great progress in the handover of managerial power to the next generation of the owner family. A hefty chunk of Samsung Electronics shares was handed over to Samsung Electronics Vice President Lee Jae-yong, the eldest son of Chairman Lee, through Samsung Everland,the de facto holding company of Samsung Group. His two daughters have also been heading up Samsung affiliates.

By the way, I’d like to raise a question: Is Samsung solely a company owned by the Lee family Are the children of Chairman Lee eligible to take the helm of Samsung Group Are they cable of steering Samsung to success Except the fact that they are the off springs of Lee Kun-hee, what are their pronounced strengths There are so many worries over their capabilities.

I hope the transfer of managerial control to the children of Chairman Lee will be transparent enough to contribute to establishing legitimate, fair market order in South Korea. In other words, the succession process should stay clear of tax evasions and Chairman Lee’s children should prove their worth as top managers. The global market, let alone the domestic market, is eyeing on any developments in the process of Samsung changing hands.

The owners of many conglomerates, based in Mexico and Southeast Asian nations, have been blamed for their single-minded, greedy pursuit of self-interest. We do not want to see another disgraced Korean CEO in court on charges of committing illegalities in father-to-children power transfer.

Internally, there is a risk of various shady incidents within Samsung Group. Some sly old timers could stoop to embezzlement or dereliction of duty. There is also a possibility of a family feud over inheritances. 

Are the children of Chairman Lee the group’s keen-eyed, good leader material, who can ensure the sustainable growth of Samsung in the face of strong competition from global giants like Microsoft and Apple in this fast-changing global business environment I hope the heirs to the Samsung throne will make historical achievements and leave an applaudable legacy in the future.

 

 


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