Samsung Electronics Vice Chairman Lee Jae-yong → Chairman, When?

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyewon] With the passing of Samsung Chairman Lee Kun-hee, the promotion of his eldest son, Samsung Electronics Vice Chairman Lee Jae-yong, to chairman has become a focal point. In the business community, based on cases of major groups where the successor took over immediately after the previous chairman's death, it is expected that Lee will assume the chairman position as early as next month. If Lee Jae-yong succeeds to the chairman position, all of Korea's four major conglomerates will enter an era of third- and fourth-generation chairmen.

According to the business community on the 27th, considering the precedent where Lee Kun-hee became chairman 13 days after the death of his father, founder Lee Byung-chul, it is anticipated that Lee Jae-yong will take on the chairman role as early as next month, or at the latest within this year. Lee Kun-hee was appointed group chairman on December 1, 1987, 13 days after the founder passed away on November 19 of the same year. Previously, LG Group Chairman Koo Kwang-mo succeeded the chairman position one month after Koo Bon-moo's death on May 20, 2018. SK Chairman Chey Tae-won also assumed the chairman role one week after the passing of his father, Chairman Chey Jong-hyun, in 1998.

Lee Jae-yong's promotion to chairman is considered a matter of timing, and the atmosphere inside and outside the group already treats it as a foregone conclusion. Since Lee effectively acted as the head of the group during Chairman Lee Kun-hee's illness, demonstrating his management capabilities, a natural succession to the chairman position is expected. The recent transition of major groups, excluding Samsung, to third- and fourth-generation chairmen?such as Hyundai Motor Group's Chief Executive Vice Chairman Chung Eui-sun becoming chairman?also appears to have an influence.

Currently, Lee Jae-yong holds the position of vice chairman at Samsung Electronics but is an unregistered executive. Therefore, it is most likely that Lee will succeed to the chairman position of Samsung Electronics, rather than the Samsung Group, after going through the board of directors' approval process.

There are variables, however. Since the retrial of the state affairs manipulation case and the trial regarding Samsung's succession allegations are ongoing simultaneously, if Lee prioritizes resolving judicial risks, it is speculated that he may complete the retrial early next year and then assume the chairman position. The business community views Lee's own will to take on the chairman role, as the de facto head of the group, as the most important factor, with judicial procedures being the biggest variable.