[Chairman Lee Kun-hee Passes Away] Direction of Samsung's Management System... Autonomous Management Centered on Vice Chairman Lee Jae-yong Expected

On the 25th, the day Lee Kun-hee, Chairman of Samsung Group, passed away, the flag at the Samsung Electronics building in Seocho-gu, Seoul, was fluttering in the wind. Photo by Dongju Yoon doso7@

[Asia Economy Reporter Changhwan Lee] With the passing of Samsung Group Chairman Lee Kun-hee on the 25th, interest is growing regarding the future management structure of Samsung Group.

Since Chairman Lee Kun-hee collapsed in 2014, Samsung has been under third-generation management centered on his son, Vice Chairman Lee Jae-yong of Samsung Electronics.

In particular, after Vice Chairman Lee Jae-yong was imprisoned in February 2017 due to the 'political scandal' case, Samsung Group dismantled its control tower, the Future Strategy Office (Mijeonsil). Since then, Samsung has maintained an autonomous management system among its affiliates.

It is expected that, for the time being, the autonomous management system led by the three siblings?Lee Jae-yong, Lee Boo-jin, and Lee Seo-hyun?along with the presidents of the affiliates will continue.

Especially, Vice Chairman Lee is expected to continue leading the group by managing major electronics affiliates, including Samsung Electronics. It is anticipated that he will succeed the late Chairman Lee and assume the position of Samsung Electronics Chairman at an appropriate time.

The second sibling, President Lee Boo-jin, currently leads Hotel Shilla, while Lee Seo-hyun, President of Samsung C&T Fashion Division (formerly Cheil Industries), resigned at the end of 2018 and moved to become Chairperson of the Samsung Welfare Foundation.

Although the possibility of the three siblings separating their affiliates is not high in the short term due to inheritance and shareholding structure issues, the possibility of affiliate separation is raised in the mid to long term.