Family Control of Samsung Group
One of the characteristics of Korean conglomerates is their tradition of family run management with the offspring of key executives assuming top positions and eventual control over the business group.
Samsung Group chairman Lee Kun-hee’s recent resignation as standing director of Samsung Everland has fueled speculation that the move is aimed at transferring power to his only son Lee Jae-yong.
As with other Korean conglomerates, one firm usually serves as the defacto holding company of the group--with Samsung, the amusement park Everland functions as the defacto business entity.
Currently, Lee Kun-hee is registered as a director in a total of six listed Samsung group affiliates: Samsung SDI, Samsung Corp., Cheil Industries, Samsung Electronics, Samsung Electro-Mechanics and the Shilla Hotel.
The move to give control of Everland to Lee Jae-yong is thought to groom the son for eventually overseeing the Samsung group. Despite the move with Everland, Lee Kun-hee is still expected to maintain his ownership and dominate control over the group's flagship division Samsung Electronics.
Samsung Group chairman Lee Kun-hee’s recent resignation as standing director of Samsung Everland has fueled speculation that the move is aimed at transferring power to his only son Lee Jae-yong.
As with other Korean conglomerates, one firm usually serves as the defacto holding company of the group--with Samsung, the amusement park Everland functions as the defacto business entity.
Currently, Lee Kun-hee is registered as a director in a total of six listed Samsung group affiliates: Samsung SDI, Samsung Corp., Cheil Industries, Samsung Electronics, Samsung Electro-Mechanics and the Shilla Hotel.
The move to give control of Everland to Lee Jae-yong is thought to groom the son for eventually overseeing the Samsung group. Despite the move with Everland, Lee Kun-hee is still expected to maintain his ownership and dominate control over the group's flagship division Samsung Electronics.
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