The other Korean dynastic power transfer

Posted on : 2012-06-11 16:08 KST Modified on : 2012-06-11 16:08 KST
Samsung descendents lining up to take their place in the empire
 Lee Bu-jin and Lee Seo-hyun
Lee Bu-jin and Lee Seo-hyun

By Kim Jin-cheol, staff reporter

The grandchildren of Samsung founder Lee Byung-chull are lining up for powerful positions within their family’s empire. The competition has already begun.

Children of Samsung chairman Lee Kun-hee, current president Lee Jae-yong and Lee Seo-hyun, were made executives in 2010.

Most expect Samsung Electronics and Finance to be taken over by Lee Jae-yong, Logistics and Service to Lee Bu-jin, and Cheil Industries Inc. and Cheil Worldwide Inc. to Lee Seo-hyun, respectively.

The three are still struggling to firmly establish themselves in a tough business world. Some say their fortunes will change depending on how they perform in their current positions.  

According to a senior executive from the Samsung Group, Lee Jae-yong is seeking to make his name through auto parts, as his father did with electronics. Since the end of the last year, Lee’s schedule has been dominated by meetings and business meals with CEOs of global car companies.

Jae-yong decided to have a meeting with Norbert Reithofer, the CEO of BMW, instead of participating in Mobile World Congress (MWC) last March. That event is oriented around smartphones, Samsung’s main cash cow.

Such movement was followed this month when he held a meeting with Martin Winterkorn, the CEO of Volkswagen, adding an empty seat to its new ‘Galaxy III’ smart phone release event in London.

It is said that the new CEO is soon to be accepted as its new Registered Board Director by the end of this year - thanks to his strong performance on the automobile parts.

Lee Bu-jin who drew attention with her fast-track promotion and is already one of the Registered Board Directors at Shilla Hotel, is warming up to run “Business Hotel”, while creating a new brand, called “Shilla Stay”. It plans to operate two of them in Kangnam (south of the Han River) and one in Kangbuk (north of the Han River). Hotel Shilla will also be contracted out to operate the other two Business Hotels: one at Kangnam-Gu in Seoul where previously KT telephone office used to be and the other one at Hwa-seong in Kyungki Province - financed by a hotel fund, Asia Asset. What’s more, a previous industrial site of Dae-seong Industry nearby at Kwanhun-Dong in Jongro-Gu was, recently purchased by the Samsung Fire, and is expected to attract their Business Hotels and Duty-Free Shops with taking advantage of its crucial location within the boundary of the Insa-Dong Special Designated Area for Tourists.  

The family’s youngest sibling Lee Seo-hyun is planning to open “Eight Seconds” - a fashion brand store - at the location occupied by New York Bakery for almost 38 years. The chain aims to compete with foreign brands like UNICLO from Japan and Spain’s ZARA.

Eight Seconds’ first location opened in Seoul’s trendy Sinsa neighborhood. There are currently five of them operating in Seoul. Their aim is to promote the brand onto the global stage by launching up to 50 more stores within and outside Korea.

A source closed to the field said, “Ms. Lee has been sharply criticized for her way to take over the foreign luxury brands. However, she showed an ambitious goal this time by coming up with ‘national’ brand.

Translated by Lee Dong-ju, Hankyoreh English intern

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