Funeral held for Samsung chairman Lee Kun-hee, heir faces legal battles

By Joyce Lee SEOUL (Reuters) - The family of late Samsung Electronics chairman Lee Kun-hee held a funeral ceremony on Wednesday for the patriarch, whose death on Sunday threw into question the control of the chipmaker and the country's largest conglomerate. The focus is now on Lee's son Jay Y. Lee, the 52-year-old vice chairman, to see what kind of leadership he will display as he faces serious legal risks from two trials seen stemming from efforts to ensure he succeeded his father

Reuters October 29, 2020 00:12:23 IST
Funeral held for Samsung chairman Lee Kun-hee, heir faces legal battles

Funeral held for Samsung chairman Lee Kunhee heir faces legal battles

By Joyce Lee

SEOUL (Reuters) - The family of late Samsung Electronics <005930.KS> chairman Lee Kun-hee held a funeral ceremony on Wednesday for the patriarch, whose death on Sunday threw into question the control of the chipmaker and the country's largest conglomerate.

The focus is now on Lee's son Jay Y. Lee, the 52-year-old vice chairman, to see what kind of leadership he will display as he faces serious legal risks from two trials seen stemming from efforts to ensure he succeeded his father.

After a morning ceremony closed to the media, family members, including Jay Y. Lee, boarded a bus, which left the Samsung Medical Center, where the funeral services had been held, Yonhap News TV channel showed.

The late Lee's casket, with a white wreath atop, was transported in a black hearse from the hospital to a family burial ground in Suwon, Yonhap news agency reported.

The route taken passed by sites that held meaning for Lee, including his home in central Seoul and Samsung Electronics' chip-production facilities in Hwaseong near the capital.

Lee's death raised expectations for stake sales and a potential restructuring of the sprawling business empire, as the family grapples with an anticipated inheritance tax bill of nearly 10 trillion won ($9 billion).

The tasks awaiting Samsung Electronics' new head will include growing the non-memory chip business and expanding its presence in software.

But heir apparent Jay Y. Lee faces a bigger risk from two ongoing trials, which analysts say could land him in jail for a second time.

One trial concerns the 2015 merger of two Samsung affiliates that helped Lee assume greater control of Samsung Electronics, and another relates to his role in a bribery scandal, for which he had been jailed for a year.

"Inheritance and corporate governance are issues as well, but the trials, especially the latter case, are the biggest problem. His father's passing may turn public opinion in his favour, but the effect it might have is unclear," said Park Ju-gun, head of research firm CEO Score.

(Editing by Gerry Doyle & Simon Cameron-Moore)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Global Markets: Stocks ascend to record on economic recovery, vaccine outlook
Business

Global Markets: Stocks ascend to record on economic recovery, vaccine outlook

By Chuck Mikolajczak NEW YORK (Reuters) - A gauge of global stocks hit a record and oil prices jumped on Monday as the newest positive data for a potential COVID-19 vaccine and signs of economic recovery in Asia boosted sentiment. U.S. stocks advanced, with the Dow Industrials setting a record as it neared the 30,000 mark for the first time, after pharma company Moderna said its prospective vaccine was 94.5% effective in preventing the illness, which has crushed economies across the globe

Airbnb IPO filing shows third-quarter earnings beating virus with cost cuts, new focus
Business

Airbnb IPO filing shows third-quarter earnings beating virus with cost cuts, new focus

By Anirban Sen and Joshua Franklin (Reuters) - Airbnb Inc's initial public offering (IPO) registration showed on Monday that the home rental startup turned a profit in the third quarter despite the COVID-19 pandemic, as it gears up for one of the most anticipated stock market debuts in recent years. The filing, published ahead of Airbnb's anticipated stock market debut in December, showed a dramatic recovery in its fortunes, after the coronavirus outbreak dragged down its core home rental business during the first half of the year. The slump forced it to lay off 25% of its workforce in May, suspend marketing activities for the year and seek $2 billion (£1.5 billion) emergency funding from investors, including Silver Lake and Sixth Street Partners, at a valuation of $18 billion

Biden says U.S., allies need to set global trade rules to counter China's influence
Business

Biden says U.S., allies need to set global trade rules to counter China's influence

By David Lawder WASHINGTON (Reuters) - U.S. President-elect Joe Biden said on Monday the United States needed to negotiate with allies to set global trading rules to counter China's growing influence but declined to say whether he would join a new China-backed Asian trade pact signed on Sunday.