Samsung Electronics vice chairman Lee Jay-yong, the heir apparent of Samsung Group, will take over the helm of two group foundations from his ill father starting May 31, the tech giant announced Friday.
The term of group chairman Lee Kun-hee as head of the two foundations ― Samsung Life Public Welfare Foundation and Samsung Foundation of Culture ― ends May 30.
This is the first time that the junior Lee, the chairman’s only son, has taken a chairmanship title inside the conglomerate.
The Samsung Life Public Welfare Foundation, established in 1982, rolls out various projects for the low-income bracket, and operates the Samsung Medical Center.
The Samsung Foundation of Culture, built in 1965, has been involved in various art-related projects. It also has the Samsung Museum of Art, or Leeum, under its wing, which is headed by the chairman’s wife, Hong Ra-hee.
Making the announcement, Samsung Group said in a statement that the group’s vice chairman will make a qualified leader due to his deep understanding of the intent of the foundations and capacity of succeeding Samsung’s management philosophy and its willingness to contribute to the society.
It added that the move was needed for the “smooth management” of Samsung, implying the power transfer from the ailing chairman to his son is underway.
“A key point in the succession process is controlling the foundations, because they hold stakes in major Samsung Group companies like Samsung Life,” said Park Ju-gun, head of corporate watchdog CEO Score.
Samsung insiders said that since his father’s hospitalization last May, the younger Lee has been the main decision-maker for Samsung’s key affiliates ― which includes smartphone giant Samsung Electronics.
Under his leadership over the past year, Samsung has conducted eight mergers and acquisitions, almost equal to the combined number of M&As sealed by the conglomerate in 2012 and 2013.
The M&A deals includes open smart home platform developer Smart Things, mobile payment system firm Loop Pay, and mobile cloud printing solutions maker PrinterOn, increasing Samsung’s presence in the financial technology sector ― one of the core areas of financial reform pushed by the financial regulators this year.
By Chung Joo-won and news reports (joowonc@heraldcorp.com)
