Samsung is the most familiar with from their Smartphones, TVs or refrigerators. But this is only a division of a huge corporate Empire. Samsung ships in South Korea, everything from financial services to construction of the container. Founder Lee Byung-chull, has built up the family company, from 1938 – his grandson is trying to save it now with all the illegal means.
Currently, Lee Jae-yong is accused of accounting fraud. Specifically, he should have in the merger between Samsung C&T (stands for “Construction & Engineering”) with the textile company Cheil Industries in 2015, the value of the former high and the latter is scaled down. Sense behind this: to construct His own share of the new Company would be bigger, he would have kept the Power of Samsung C&T. With the same Intention, he should have Biogen, together with two co-defendants, managers can also increase the value of Samsung Bioepsis, a Joint Venture between Samsung Biologics and the US group to 3.64 billion dollars have been revised upwards.
Lee’s attempt to keep Power in the family in the case of Samsung
The balance sheet tricks are not yet proven definitively by a court. Lee and his two co-defendants deny all the allegations. A court in Seoul saw yesterday, at least, no reasons for detention are given, although the 51-Year-old is only on probation. In 2017, he was sentenced because of bribery of the former President of South Korea, Park Geun-hye, to five years in prison. A year later, an appeals court suspended the sentence, Lee came free again. Currently, the Supreme court of the country is dealing with the case.
Officially, Lee Jae-yong is the Vice President of Samsung Electronics. He has other Sub-companies of the family Empire, such as Samsung Biologics, significant shares. Practically, he leads the business of the group as a whole, since his father Lee Kun Hee is bedridden. The 78-year-old son of the company founder, suffered in may 2014, a stroke.
That Jae-yong, may conduct the business of the family Empire, but is unlikely. He would be the heir of a huge company, but in South Korea, an inheritance is tax of 50 percent. Since Kun-Hee can no longer lead the company, moving Jae-yong and his three younger sisters shares back and forth and plan of mergers of companies with the goal of sharing, to pay the tax and keep the Power over Samsung in the family. – So it seems – don’t be shy illegal means.
family empires were important for South Korea
it would find all the South Koreans badly, if the Lee family would have to give up control of Samsung. “The System of family conglomerates with the Imperial dominion of the owner family” is the core of a major problem in South Korea, argues about the left-wing daily newspaper Hankyoreh.
“Jaebol” these are called conglomerates. They are a System made up of individual companies, which are held in place by ties within a family. In order to circumvent the prohibition of Holding companies in South Korea. They were after the Second world war on the basis of the South Korea booth, niches well, but for 20 years as a discontinued model. In addition to Samsung also Hyundai, Daewoo and LG are of similar Structure.
Which are often closely intertwined with the South Korean policy. Lee Jae-Yong’s accusation for bribery, the President no exception. First, the adopted funds to the example of Hyundai. And secondly, Jae-Yong’s father Kun Hee was convicted in 1995 on charges of bribery of then-President Roh Tae-woo.
His son is now, at least, seems to have made of the sins of his family learned. On pressure of an internal Committee of inquiry, the turn, a judge had enforced, apologized to Jae-yong at the beginning of may at a press conference open to the public. He also stated that he will not bequeath his shares to his two children.
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