After surprise announcement ending dynastic succession at company, Samsung heir pressed to explain family’s intentions

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After surprise announcement ending dynastic succession at company, Samsung heir pressed to explain family’s intentions GlobeBusiness

Samsung Electronics Vice Chairman, Jay Y. Lee, speaks during a news conference at a company's office building in Seoul, South Korea, May 6, 2020.Samsung Group heir Jay Y. Lee’s vow to end dynastic succession at South Korea’s biggest conglomerate following three generations of family control sparked skepticism in some quarters and worry in others for the future of the country’s corporate champions.

“Other conglomerates are nervous,” Kwon Tae-shin, vice chairman of the Federation of Korean Industries, told Reuters. Some governance experts said Lee’s apology should be seen in the context of his legal battles, as the 51-year-old awaits a court ruling on a corruption case which could result in a lengthy prison sentence.“It is an empty promise. This is about 20 years time and there is no binding commitment,” Park Sang-in, a Seoul National University professor and an expert on corporate governance, said.

 

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