Samsung’s family feud under way over inheritance

Samsung’s family feud under way over inheritance

Sohn Jae-gwon

2013.10.02 14:25:02

“Late chairman Lee Byung-chul, founder of Samsung Group, did not want the current chairman Lee Kun-hee to inherit the conglomerate singlehandedly. The founder formed a group ‘Seung-ji’ to reach major decisions concerning Samsung Group.” “No. The deceased founder set up the Seung-ji in an effort to allow Lee Kun-hee to have management right overarching other subsidiaries.” The legal dispute between the late founder’s eldest son, Lee Maeng-hee, and Samsung Group is shifting its focus to Seung-ji group and what the founder intended to accomplish with the group. In the second round of a civil appeal case brought to the Seoul High Court Tuesday, lawyers representing Lee Maeng-hee, former chairman of Cheil Fertilizer, said “the late chairman created Seung-ji group to check Lee Kun-hee’s sole inheritance of management right,” unveiling Seung-ji group publicly for the first time. Both Lee Maeng-hee and Samsung Group acknowledge the existence of Seung-ji group. Reportedly, late Samsung founder Lee Byung-chul ordered five figures – then Samsung Group’s chief secretary, chairman Lee Kun-hee, Shinsegae Group chairwoman Lee Myung-hee and Lee Mang-hee’s wife Sohn Bok-nam – to discuss major issues at the ‘Seungji’ meeting. “The existence of ‘Seung-ji’ lies in leading Samsung Group under five leaders, not solely by Lee Kun-hee,” noted a close aid to Lee Mang-hee. However, Samsung noted, “Lee Kun-hee had willingness to succeed the group and other companies including Cheiljedang (currently CJ) whose ownership is transferred to other brothers and sisters should be under the control of Lee Kun-hee as well.”

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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