Samsung faces shake-up after chairman's death
South Korean conglomerate Samsung could be “shaken up” after the death of chairman Lee Kun-hee last week.
![Lee Kun-Hee, late chairman of Samsung](https://cdn.mos.cms.futurecdn.net/3PorkRRpux3HsSqYKpRaGb-415-80.jpg)
South Korean conglomerate Samsung could be “shaken up” after the death of chairman Lee Kun-hee (pictured) last week, says the BBC. Shares in several Samsung businesses have jumped amid reports that his heirs could be “forced into asset sales or dividend payments” in order to pay a “massive” inheritance tax bill.
A large tax bill isn’t the only problem that Samsung faces, says Elizabeth Koh and Jonathan Cheng in The Wall Street Journal. While Lee transformed a “second-tier electronic-parts maker into the world’s biggest manufacturer of smartphones and televisions”, the company has faced a “string of scandals and business challenges” in recent years. In particular, Lee’s attempt to pass his empire to his son, vice chairman Lee Jae-yong, who is widely expected to succeed his father as chairman, sparked continuing legal cases into “alleged bribery and financial fraud” that could see Jae-yong imprisoned. Samsung is also battling “slowing momentum” in mobile phones”.
But don’t underestimate Jae-yong or Samsung, says The Economist. Since the younger Lee effectively took over control in 2014, Samsung has defended its position in mobile devices against competition from China while also forging global partnerships, including with Apple – a Samsung subsidiary supplies the screens used in iPhones. Jae-yong is also moving the company away from producing “solid but unsexy hardware” towards an “emphasis on design and software” – the same strategy that has won American tech firms “trillion-dollar valuations”.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
![https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg](https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748-320-80.jpg)
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.
He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.
Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.
As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.
Follow Matthew on Twitter: @DrMatthewPartri
-
Tesla and Alphabet announce results – should you invest in Big Tech?
How profitable are the world’s biggest tech companies? We share the latest so far this earnings season.
By Katie Williams Published
-
How working part-time in retirement could boost your pension by £87,000
Easing into retirement by working a few days a week could add thousands to your pension pot. We crunch the figures to see how working part-time can boost your pension po
By Ruth Emery Published
-
What does a weak yen mean for Japanese stocks?
The Japanese yen has hit its lowest level against the US Dollar since 1986. What does it mean for its stock market?
By Alex Rankine Published
-
UK mid-caps: an improving outlook
UK mid-caps have perked up and the rally may run further, but long-term investors should remain selective
By Cris Sholto Heaton Published
-
The tobacco industry is going smoke-free - how to profit from it
Tobacco companies have realised their traditional products are on the wane. But new opportunities have opened up – and should prove lucrative
By Rupert Hargreaves Published
-
Is it time to invest in creative industries?
Any industrial strategy should not overlook the creative industries, one of our top national assets
By David C. Stevenson Published
-
Is Mercia Asset Management set for success?
Mercia Asset Management helps the government fund smaller companies in Britain’s regions. Should you invest?
By Rupert Hargreaves Published
-
British stocks set for a boost
British stocks are due for a bounce as the UK looks more stable compared to many economies
By Alex Rankine Published
-
Ocado shares jump by a fifth
Ocado takes a turn for the better after attractive profit forecasts were announced
By Dr Matthew Partridge Published
-
The AI boom is on borrowed time
The hype around the AI boom could be on its way out – but why?
By Alex Rankine Published