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
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
-
NS&I launches new British Savings Bonds issues with higher interest ratesNS&I has launched new issues of British Savings Bonds with improved interest rates, making them much more attractive for customers who want absolute security on their cash savings
-
Santander launches new freebie for certain savings customers - are you eligible?Santander is offering a free four-year railcard to some customers from today. We explain who will qualify for the incentive
-
Falling revenues and mounting debt spell trouble for Jumia TechnologiesStruggling African e-commerce platform Jumia Technologies looks headed for the exit, says Dr Matthew Partridge.
-
Next reports £1 billion in annual profits for the first time – what's next for the retailer?Clothing retailer Next has become only the fourth member of its sector to surpass £1 billion in annual profits. What does this mean for the company's future?
-
Best of British bargains: cash in on undervalued companies in the UK stock marketOpinion Michael Field, Chief Equity Market Strategist, EMEA, Morningstar, selects three attractive UK stocks where he'd put his money
-
Building firm Keller presents low debt and ample scope for growthGeotechnical contractor Keller, which supports vital global infrastructure, boasts rising profits and a cheap valuation
-
PZ Cussons share price down 75% in last decade – why it's one to watchOpinion Once-strong consumer-goods business PZ Cussons is out of favour with the market. That spells opportunity for investors, says Jamie Ward
-
Cash in on the biotech sector with specialist trust BioPharmaOpinion BioPharma has an attractive niche in lending to asset-rich biotechnology companies
-
India's stock market decline wipes out $1.3 trillion in market value – can investors stay optimistic?More than $1 trillion has been wiped off from India's stock market after investors turn to China. Has the emerging-market darling hit rock bottom?
-
Pensions revolution: how to profit from the trends shaping the UK pension systemThe UK pension system is one of the biggest in the world. Big changes are under way, says Rupert Hargreaves
