Samsung's future when the heir is arrested 1
Prosecutors said that Mr. Lee spent tens of millions of dollars on a non-profit foundation of Choi Soon-sil – a close friend of South Korean President – Park Geun-hye, to get the Government’s approval for a controversial merger deal.
How Samsung dominates the Korean economy
Yonhap quotes some analysts as saying that after this incident, Samsung Group may have to stop new investment and business plans, at least for the time being.
Jay Y. Lee is Vice Chairman of Samsung Electronics and heir to the Samsung Group.
However, Forbes believes that Mr. Lee’s arrest could be a step forward in the reform of powerful family corporations (chaebol) in this country.
Daniel Gleeson – analyst at Ovum said that this time when the entire Samsung system is being closely watched is an appropriate opportunity for investors who intend to reform the company’s corporate structure.
For more than a year now, Samsung Electronics shareholder – investment fund Elliott Management (USA) has called for the company to split into two, with one acting as the owner and the other as the operating company.
Samsung is trying hard to improve its relationship with investors.
These incentives for investors are the reason why Samsung Electronics stock price increased more than 60% last year.
`This is the perfect time to split Samsung Electronics. Normally, this is one of the largest and most powerful companies in the world, involved in many fields and has a complex and massive structure. Because
In addition, the company’s activities, from mobile phone production, OLED screens to chip manufacturing, are so independent that they will not be too much affected by issues from senior management.
Before that, they had also overcome a similar storm.
