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Samsung Chairman’s Stock Holdings Reach $ 10B U.S. Dollars
SEOUL, Oct. 2012 — The value of stocks held by Samsung Electronics Chairman Lee Kun-hee reached around 10 billion U.S. dollars thanks to surging prices in Samsung Electronics shares, a local information provider said Tuesday.
Stocks owned by Chairman Lee, including a 3.38 percent stake in Samsung Electronics, were valued at 10.86 trillion won (9.8 billion U.S. dollars) as of last Friday, making Lee the richest stock holder in the country, according to corporate information provider Chaebol.com.
The value was up 22.2 percent from Jan. 2 due to a surge in Samsung Electronics share prices that jumped 24.6 percent over the cited period along with brisk sales of Galaxy smartphone series.
Lee’s wife Hong Ra-hee saw her stock holdings valued at 1.46 trillion won, ranking 10th among stock-rich billionaires, while the chairman’s only son Lee Jae-yong owned stocks worth 1.13 trillion won. Shares owned by Lee’s family members totaled 13.44 trillion won as of Friday.
Hyundai Motor Group Chairman Chung Mong-koo ranked second with his holdings reaching 7.35 trillion won as of Friday, up 12.9 percent from Jan. 2. He was followed by his son and Vice Chairman of Hyundai Motor Chung Eui-sun, whose stock holdings amounted to 3. 4 trillion won. Enditem
Lee Kun-hee (born January 9, 1942) is Chairman of Samsung Electronics. He resigned on April 21, 2008 owing to Samsung Slush funds scandal, but returned on March 24, 2010. Lee has a degree in economics from Waseda University in Tokyo and attended an MBA course at George Washington University in the United States in 1966 without earning a degree. He speaks Korean, English, and Japanese. In 1996, Lee became a member of the International Olympic Committee. With an estimated net worth of $7.4 billion, him and his family rank among the Forbes richest people in the world. He is the third son of Samsung Group founder Lee Byung-chull.[2]
An avid sportsman, he was instrumental in the successful third attempt to bring the 2018 Winter Olympics to Pyeongchang.
Samsung scandal
On January 14, 2008, Lee’s home and office were raided by the Korean police for an ongoing probe into accusations that Samsung is responsible for a slush fund used to bribe influential prosecutors, judges, and political figures in South Korea.[3] On April 4, 2008 he denied allegations against him for his role in the Samsung Slush Funds scandal.[4] After the second round of questioning by the South Korean prosecutors which occurred on April 11, 2008, Lee was quoted by reporters saying "I am responsible for everything. I will assume full moral and legal responsibility.” On July 16, 2008, The New York Times reported that the Seoul Central District Court found him guilty on charges of financial wrongdoing and tax evasion. Prosecutors requested that Lee be sentenced to seven years in prison and fined $347 million. The court fined him $109 million and sentenced him to 3 years suspended jail time. Lee has not responded to the verdict.[5]
On December 29, 2009, the South Korean government moved to pardon Lee Kun-hee.
Achievements as CEO of Samsung
In the early 1990s, believing that Samsung Group was overly focused on producing massive quantities of low-quality goods and that it was not prepared to compete in quality, Lee famously said "Change everything except your wife and kids".
The shift is now widely considered a success. One of the group’s subsidiaries, Samsung Electronics, is now one of the world’s leading developers and producers of semiconductors, and was listed in Fortune magazine‘s list of the 100 largest corporations in the world in 2007.
On April 21, he officially resigned, and stated: "We, including myself, have caused troubles to the nation with the special probe; I deeply apologise for that, and I’ll take full responsibility for everything, both legally and morally."[6]
Nepotism
In an interview, Lee expressed pride in the fact that Samsung attracts the brightest minds in South Korea, but added that his new goal is to attract talent from all over the world to ensure that Samsung will remain one of the top companies in the world for years.
However, instead of foreign talent, Lee put his own children into key positions at Samsung.[7] As of 2010, his son Lee Jae-yong is President and COO of Samsung Electronics. Lee Boo-jin, his eldest daughter is President and CEO of Hotel Shilla, a luxury hotel chain, as well as President of Samsung Everland, a theme park and resort operator that is "widely seen as the de facto holding company for the conglomerate" according to Associated Press.[7]
Personal life
His siblings and some of their children are also executives of major Korean business groups. His eldest brother’s son is currently chairman of the CJ Group, a company holding businesses in food, beverages and entertainment. His second eldest brother’s sons ran Saehan Media, one of the largest blank media producers. His older sister is the owner of Hansol Group, the country’s largest paper manufacturer and producer of electronics and telecommunications. One of his sisters is married to Koo Ja-hak, brother of former chairman of the LG Group and himself a former chairman of LG Semiconductor. He is currently running one of the largest food services firms in Korea. His younger sister, Lee Myung Hee is currently the chairwoman of the Shinsegae Group, the largest retail company in Korea, with major holdings such as the Shinsegae Department Stores and E-Mart.
In late 2005, Lee spent time being tested for cancer at the MD Anderson Medical Center in Houston, Texas.[8]
Lee’s older brothers Lee Maeng-hee and Lee Sook-hee initiated legal action against him in February 2012, asking a South Korean court to award them shares of Samsung companies totaling hundreds of millions of dollars, which they claim their father willed to them.[9] Court hearings began in May 2012.
Awards
- In 2004, Lee received the Legion of Honour from French government at Paris.
- In September 2006, Lee received the James A. Van Fleet Award from the Korea Society.
Quotes
- "One genius can feed millions of others. For the upcoming era where creativity will be the most important driver of business success, we need to hire the best. The economic value of one genius is more than $1 billion."
- "The business world has changed significantly. It is becoming increasingly difficult to foresee what sectors will prosper or opportunities will arise in the future. But if you hire the best and brightest, you will solve whatever issues arise in the future."
- "It is difficult to understand the true dimensions of a problem or a situation when so many things seem to be happening on the surface. This is why I urge my employees to analyze a given situation from various perspectives. This way of thinking allows one to see the true aspects of a situation, which, in turn, allows one to respond wisely."
- "Firing a CEO because his financial performance was poor is simply a bad decision. I’ve encountered several situations where a CEO once performed poorly in one sector then went on to perform much better elsewhere. This is one of the reasons Japanese corporations were able to compete successfully against US corporations."
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