The heir of Samsung Group, Jay Y. Lee will be taking over from his father Lee J=Kun-hee as the head of two key foundations.
This development suggests that a transfer of leadership is underway at South Korea’s largest conglomerate. Jay Y. Lee, 46, will be succeeding his 73 year old father who is currently hospitalized after he suffered a heart attack nearly a month ago, as chairman of Samsung Life Public Welfare Foundation and Samsung Foundation of Culture from May 31st as per a statement from a Samsung Group spokeswoman.
These two foundations hold stake in Samsung Life Insurance Co Ltd which is a very important piece in the conglomerate’s complicated ownership structure which basically enables the Lee family to control the group even though they have very small stake holdings.
Moreover insiders at the company have stated that since the hospitalization of his father the younger Lee has been the main decision maker at the vast conglomerate which also includes the smartphone giant Samsung Electronics Co Ltd.
The head of corporate watchdog CEO Score, Park Ju-gun has stated that the key point in the succession process is controlling the foundations as they hold stakes in key Samsung Group companies.
Over the past year many investors and analysts have stated that the Samsung Group has undertaken many steps in order to prepare the way for a stable handover from the elder Lee to his three children.
Some investors and analysts also believe that they spotted Jay Y. Lee’s newfound power in a spike in acquisitions by Samsung Electronics plus the decision to sell the conglomerate’s non-core chemical and defense arms last year.
The Samsung Group spokeswoman stated that the elder Lee remained in a stable condition even though many sources claim that he is unable to converse.
