Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      South Africa's stablecoin silence is becoming a policy failure

      South Africa’s stablecoin silence is becoming a policy failure

      6 February 2026
      Every electric car you can buy in South Africa in early 2026, ranked by price

      Every electric car you can buy in South Africa in early 2026, ranked by price

      6 February 2026
      From stocks to crypto, markets reel as AI doubts grow

      From stocks to crypto, markets reel as AI doubts grow

      6 February 2026
      South Africa deepens China ties as US trade tensions escalate

      South Africa deepens China ties as US trade tensions escalate

      6 February 2026
      Big changes at Lesaka as Bank Zero deal nears completion - Lincoln Mali

      Big changes at Lesaka as Bank Zero deal nears completion

      6 February 2026
    • World
      AI won't replace software, says Nvidia CEO amid market rout - Jensen Huang

      AI won’t replace software, says Nvidia CEO amid market rout

      4 February 2026
      Apple acquires audio AI start-up Q.ai

      Apple acquires audio AI start-up Q.ai

      30 January 2026
      SpaceX IPO may be largest in history

      SpaceX IPO may be largest in history

      28 January 2026
      Nvidia throws AI at the weather

      Nvidia throws AI at weather forecasting

      27 January 2026
      Debate erupts over value of in-flight Wi-Fi

      Debate erupts over value of in-flight Wi-Fi

      26 January 2026
    • In-depth
      How liberalisation is rewiring South Africa's power sector

      How liberalisation is rewiring South Africa’s power sector

      21 January 2026
      The top-performing South African tech shares of 2025

      The top-performing South African tech shares of 2025

      12 January 2026
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
      TechCentral's South African Newsmakers of 2025

      TechCentral’s South African Newsmakers of 2025

      18 December 2025
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
    • TCS
      TCS+ | How Cloud On Demand is helping SA businesses succeed in the cloud - Xhenia Rhode, Dion Kalicharan

      TCS+ | Cloud On Demand and Consnet: inside a real-world AWS partner success story

      30 January 2026
      Watts & Wheels S1E3: 'BYD's Corolla Cross challenger'

      Watts & Wheels S1E3: ‘BYD’s Corolla Cross challenger’

      30 January 2026
      Watts & Wheels S1E3: 'BYD's Corolla Cross challenger'

      Watts & Wheels S1E2: ‘China attacks, BMW digs in, Toyota’s sublime supercar’

      23 January 2026

      TCS+ | Why cybersecurity is becoming a competitive advantage for SA businesses

      20 January 2026
      Watts & Wheels S1E3: 'BYD's Corolla Cross challenger'

      Watts & Wheels: S1E1 – ‘William, Prince of Wheels’

      8 January 2026
    • Opinion
      South Africa's skills advantage is being overlooked at home - Richard Firth

      South Africa’s skills advantage is being overlooked at home

      29 January 2026
      Why Elon Musk's Starlink is a 'hard no' for me - Songezo Zibi

      Why Elon Musk’s Starlink is a ‘hard no’ for me

      26 January 2026
      South Africa's new fibre broadband battle - Duncan McLeod

      South Africa’s new fibre broadband battle

      20 January 2026
      AI moves from pilots to production in South African companies - Nazia Pillay SAP

      AI moves from pilots to production in South African companies

      20 January 2026
      South Africa's new fibre broadband battle - Duncan McLeod

      ANC’s attack on Solly Malatsi shows how BEE dogma trumps economic reality

      14 December 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » In-depth » Samsung succession in disarray

    Samsung succession in disarray

    By Agency Staff17 January 2017
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Image: TechStage

    The long-orchestrated plan to cement Jay Y Lee’s position atop Samsung Group may put him in jail instead, raising questions about who would step in to run South Korea’s biggest conglomerate in the aftermath.

    Prosecutors are seeking Lee’s arrest on allegations including bribery and embezzlement, which if proven could prompt him to relinquish duties at the family business.

    Potential replacements include executives running key divisions of the dominant electronics business, as well as a sister — hotel executive Lee Boo-jin. While a long shot, her anointment would mark a seismic shift in the way the nation’s patriarchal empires are run.

    After spending years following in his father’s footsteps to the chairman’s seat of Samsung Group, Lee is trying now to avoid the missteps that triggered his father’s two criminal convictions.

    Even if the accusations against him involving Korea’s president are proven in court, it’s still possible Lee could return to the company later or even call the shots from behind bars, just as executives from Hyundai Motor and SK Group have done.

    “Chaebol executives have a history of managing from jail, whether it be via lawyers or secretaries visiting them,” said Lee Kyung-mook, a professor at Seoul National University’s Graduate School of Business.

    It’s a perilous practice that a person can take over a company just because he or she was born to a successful father

    Samsung declined to comment when asked about a potential leadership vacuum.

    A court hearing is scheduled for Wednesday to determine whether to approve the prosecutor’s request for an arrest warrant. Whether the warrant is granted or not, prosecutors would continue their probe, with a possible indictment coming later. Lee testified last month that he never ordered donations to be made in return for political favours.

    Shares rebounded on Tuesday after a two-day decline.

    Lee’s potential arrest in the scandal surrounding President Park Geun-hye is another calamity for the vice chairman of Samsung Electronics, the largest maker of mobile devices.

    Last year, the company pulled its Galaxy Note7 smartphone off the shelves because some devices burst into flames. The debacle cost Suwon-based Samsung an estimated US$6bn and a competitive advantage before Apple released its iPhone 7 models.

    Jay Y Lee

    Lee, 48, has had trouble matching the success of his father, Lee Kun-hee, who transformed Samsung Electronics from a copycat appliance maker into a global powerhouse in TVs, smartphones and memory chips. The elder Lee — South Korea’s richest man — suffered a crippling heart attack in May 2014, and Samsung shares fell that year and the next before recovering in 2016.

    “It’s a perilous practice that a person can take over a company just because he or she was born to a successful father,” opposition lawmaker Park Yong-jin said. “The biggest problem with our economy is that people with unproven skills run its biggest companies.”

    Lee doesn’t play the role of day-to-day manager, depending rather on co-CEOs and other top managers to handle those responsibilities. But employees and shareholders depend on him to provide strategic guidance when it comes to decisions like the next big bets in technology or potential acquisitions.

    After the elder Lee’s collapse, executives including JK Shin, who is in charge of the smartphone division, handled daily operations for Samsung Electronics.

    The son became de facto leader of the group, which then embarked on an intricate reorganisation to solidify his control. Prosecutors want to know if that effort involved making payments to a presidential confidante in exchange for government support.

    The corporate governance at Samsung could remain awkward for an extended period of time, and that would increase uncertainties

    If Lee is imprisoned, he could be replaced by Samsung Electronics’ co-CEO Kwon Oh-hyun, 64, who leads the semiconductor and display businesses. The successes of those two divisions helped propel Samsung to its best operating profit in three years during the quarter ended 31 December.

    Another candidate is Yoon Boo-keun, 63, who heads the consumer electronics unit encompassing TVs and appliances.

    “He’s part of the trio with Lee and Kwon that has run Samsung Electronics,” said Park Ju-gun, president of Seoul-based corporate watchdog CEOScore. “Samsung could be run as if that trio were still intact.”

    It also would be “natural” for Lee Kun-hee’s eldest daughter to be considered, said Chung Sun-sup, who runs corporate researcher Chaebul.com.

    Lee Boo-jin, 46, is CEO of the luxury Hotel Shilla chain, which is on track to post revenue growth for a sixth straight year, according to data compiled by Bloomberg. She owns 5,5% of Samsung C&T, one of the biggest shareholders in Samsung Electronics.

    Samsung’s headquarters in Suwon, Korea

    “Some speculate she could practically take over, but being a large shareholder doesn’t mean she could run a massive company like Samsung Electronics,” Chung said. “Realistically speaking, Kwon may be the one.”

    Lee Kyung-mook, the Seoul National University professor, also identified her as a candidate to manage the conglomerate, albeit temporarily.

    A daughter taking over Samsung would break with tradition in South Korea, where sons succeed fathers at the chaebol that dominate the economy. Still, Samsung has been a trailblazer in doing away with old business practices and hiring women aggressively.

    “Lee’s sister may briefly take the reins, but there’s little chance she’d take over permanently given she has fewer shares in the firm than her brother,” the professor said.

    The youngest surviving daughter, Lee Seo-hyun, is an executive at Samsung C&T.

    Lee’s sister may briefly take the reins, but there’s little chance she’d take over permanently

    In the meantime, Jay Y Lee may miss the window of opportunity to succeed his father as parliament moves to make it harder for Samsung to use its own shares to help him consolidate control, said Heo Pil-seok, CEO at Midas International Asset Management in Seoul. That could make the stock more volatile.

    Park, the lawmaker, submitted a bill nicknamed the “Jay Y Lee Law” to prevent financial firms from supporting the types of internal mergers orchestrated to help Lee boost control.

    “The corporate governance at Samsung could remain awkward for an extended period of time, and that would increase uncertainties,” Heo said.

    The elder Lee’s criminal convictions — in 1996 for bribing a former president and in 2008 for embezzlement and tax evasion — may work against his children. During a parliamentary hearing before President Park’s impeachment, Jay Y Lee acknowledged that someone else may take over the collection of about 60 divisions with combined revenues equal to about one-fifth of South Korea’s GDP.

    “I will hand it over if there is someone better than me,” he said. “I will hand it over at any time.”  — (c) 2017 Bloomberg LP



    Jay Y Lee JK Shin Lee Boo-jin Lee Seo-hyun Park Geun-hye Samsung Samsung Electronics
    WhatsApp YouTube Follow on Google News Add as preferred source on Google
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleSomething weird is happening on Venus
    Next Article World’s most innovative countries

    Related Posts

    China's Haier takes aim at Samsung, LG and Hisense in South Africa

    China’s Haier takes aim at Samsung, LG and Hisense in South Africa

    3 February 2026
    Chip shortage will get worse, Samsung warns

    Chip shortage will get worse, Samsung warns

    29 January 2026
    smartphones

    Reports of the smartphone’s impending death are greatly exaggerated

    28 January 2026
    Company News
    The skills gap is a thinking gap: why South African employers can't find problem solvers

    The skills gap is a thinking gap: why SA employers can’t find problem solvers

    6 February 2026
    Vox Kiwi Wireless: fibre-like broadband for South African homes

    Vox Kiwi Wireless: fibre-like broadband for South African homes

    5 February 2026
    NEC XON achieves an African first with full Fortinet accreditation - Ian Kruger

    NEC XON achieves an African first with full Fortinet accreditation

    5 February 2026
    Opinion
    South Africa's skills advantage is being overlooked at home - Richard Firth

    South Africa’s skills advantage is being overlooked at home

    29 January 2026
    Why Elon Musk's Starlink is a 'hard no' for me - Songezo Zibi

    Why Elon Musk’s Starlink is a ‘hard no’ for me

    26 January 2026
    South Africa's new fibre broadband battle - Duncan McLeod

    South Africa’s new fibre broadband battle

    20 January 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    South Africa's stablecoin silence is becoming a policy failure

    South Africa’s stablecoin silence is becoming a policy failure

    6 February 2026
    Every electric car you can buy in South Africa in early 2026, ranked by price

    Every electric car you can buy in South Africa in early 2026, ranked by price

    6 February 2026
    From stocks to crypto, markets reel as AI doubts grow

    From stocks to crypto, markets reel as AI doubts grow

    6 February 2026
    South Africa deepens China ties as US trade tensions escalate

    South Africa deepens China ties as US trade tensions escalate

    6 February 2026
    © 2009 - 2026 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}