Chastened Samsung inheritor won’t hand the corporate right down to his youngsters

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The billionaire Samsung vice chairman, who’s the son of former chairman Lee Kun-hee, made the announcement at a press convention in Seoul on Wednesday.

“I don’t plan to move down my function to my youngsters,” the youthful Lee, who’s often known as Jay Y. Lee, advised reporters.

“That is one thing I’ve thought of for a very long time however have been hesitant to precise brazenly. It was as a result of not solely is the enterprise atmosphere tough, however I felt it might be irresponsible to talk on succession points after I myself haven’t been correctly confirmed but,” he added. His father was left incapacitated by a coronary heart assault in 2014.

Samsung is South Korea’s largest conglomerate. Its mixed companies are estimated to account for round 15% of the nation’s total economic system. Samsung Electronics, the most important a part of the group, is the world’s main smartphone maker and an important provider of reminiscence chips and show screens.

Lee, who was jailed in 2017 after what many referred to as the “trial of the century,” additionally apologized for shortcomings in his management of the corporate. He was convicted of bribery linked to the corporate’s succession and the downfall of former South Korean President Park Geun-hye.

Lee on Wednesday acknowledged that Samsung has “failed, at occasions, to fulfill society’s expectations.” He mentioned a number of the controversies the corporate has confronted in recent times, together with disputes over the forming of labor unions in addition to his personal prison trial.

“This has been my fault,” Lee stated. “I provide my honest apology.”

Jay Y. Lee, co-vice chairman of Samsung Electronics, speaking at a news conference in Seoul on Wednesday.

The chief’s remarks come after Samsung’s unbiased compliance committee suggested Lee to apologize over the dealing with of succession and labor.

Whereas Lee was freed from jail in 2018, his case gripped South Korea for months. It was a part of an enormous influence-peddling scandal that brought down the government of former President Park.
Final August, South Korea’s prime courtroom ordered a retrial for Lee, reigniting the case and elevating issues that the expertise scion may very well be despatched again to jail.

Lee’s feedback got here simply days after Samsung warned buyers about rising headwinds for its enterprise.

The corporate final week reported rising revenue and operating profit for the primary quarter of the yr, nevertheless it additionally cautioned that the months forward can be painful because the coronavirus pandemic disrupts international provide chains, hurts smartphone demand and complicates the adoption of 5G expertise.

— Sherisse Pham contributed to this report.

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