Vertical Divider
Samsung Heir and Vice-Chairman Back in Prison
Samsung Electronics’ Vice-Chairman and largest shareholder Lee Jae-yong was arrested in court yesterday at a remand retrial. As the leader of the company and the one responsible for approving all large M&A projects, there are fears that Samsung will enter another phase of uncertainty, similar to the last time the VD was imprisoned. Samsung management has likely been preparing for this possible issue, a senior official at Samsung explained, “At Samsung Electronics, small-scale investments or acquisitions can also be promoted by the business manager, but large-scale investments and mergers and acquisitions require Lee’s role,.”
In 2017, when Lee was imprisoned the first time, the company instituted the Support Task Force which coordinated Samsung’s affiliates and was led by Samsung’s President Hyun-ho Jeong, but uncertainties about his ability to serve as a central leader remain. As the death of Samsung’s former Chairman Lee Kun-hee last year left open the plan for reorganization of governance, and managerial succession rights, along with an official inauguration, those plans, which would have been formulated by Vice Chairman Lee, are now on hold, along with his plans to finance the 12t won (~$10.85b US) inheritance tax that he must pay for his father’s estate.
Samsung Electronics’ Vice-Chairman and largest shareholder Lee Jae-yong was arrested in court yesterday at a remand retrial. As the leader of the company and the one responsible for approving all large M&A projects, there are fears that Samsung will enter another phase of uncertainty, similar to the last time the VD was imprisoned. Samsung management has likely been preparing for this possible issue, a senior official at Samsung explained, “At Samsung Electronics, small-scale investments or acquisitions can also be promoted by the business manager, but large-scale investments and mergers and acquisitions require Lee’s role,.”
In 2017, when Lee was imprisoned the first time, the company instituted the Support Task Force which coordinated Samsung’s affiliates and was led by Samsung’s President Hyun-ho Jeong, but uncertainties about his ability to serve as a central leader remain. As the death of Samsung’s former Chairman Lee Kun-hee last year left open the plan for reorganization of governance, and managerial succession rights, along with an official inauguration, those plans, which would have been formulated by Vice Chairman Lee, are now on hold, along with his plans to finance the 12t won (~$10.85b US) inheritance tax that he must pay for his father’s estate.
|
Contact Us
|
Barry Young
|