Can the hereditary system of the South Korean chaebol end?

　　Text/Li Hongdi

　　Issued in the 970th issue of China News Weekly at 2020.11.2

　　On October 25, South Korea's Samsung Group issued a statement stating that the chairman of the group, Lee Jianxi, passed away at the age of 78.

　　Li Jianxi is the son of Samsung Group founder Lee Bingzhe and the second chairman of Samsung Group.

Lee Jianxi’s son Lee Jae-yong is now the vice chairman of Samsung Group and the actual controller of Samsung Group.

　　The "Samsung Chamber of Commerce" founded by Lee Byung-chul in 1938 has become the first South Korean chaebol. The story of this "chaebol top-little" family is even more exciting than Korean dramas.

　　As one of South Korea's most well-known multinational companies, Samsung Group spans many fields such as electronics, finance, biopharmaceuticals, etc., but within the group it seems to be a small independent dynasty.

From the founder Li Bingzhe to the current vice chairman Li Zaiyong, he not only inherited his father's career, but also followed the tradition of "passing on from the past to the father".

As the third son of Li Bingzhe, Li Jianxi was able to inherit the family business, and it was also the result of the two elder brothers who were fighting for power and profit.

　　As the only son of Lee Kin Hee, Lee Jae-yong naturally inherited the core electronics and financial industries of the group.

However, on May 6 this year, Lee Jae-yong apologized to all citizens for the illegal activities and labor union issues that existed in the succession process. At the same time, he said that “in the future there will be no more disputes over the succession of management rights. There will be no shortcuts or suffering. Ethical criticism.” And “I will not inherit the management rights of the company to my children”.

It seems to end hereditary system in this generation.

　　However, public opinion believes that Lee Jae-yong's statement was under pressure.

　　In recent years, Samsung Group has continued to fall into controversy.

Company executives were accused of tax evasion, embezzlement of company funds, and were involved in the "confidential involvement in politics" of former South Korean President Park Geun-hye.

In order to facilitate the smooth succession of Samsung’s management rights to the merger, Lee Jae-yong was sentenced to two and a half years’ imprisonment in 2017 on suspicion of bribing Park Geun-hye and his cronies, with a four-year reprieve.

After a series of operations, he was released from prison on suspended sentence in 2018, but he still faces a rehearing by the High Court and may be sent back to prison at any time.

　　After the case was appealed to the South Korean Supreme Court, it was sent back to the Seoul High Court for retrial. In September this year, South Korean prosecutors announced that they would prosecute Lee Jae-yong.

　　For Korean society, the greater the power of the chaebol group, the greater the danger it may bring to the public.

The South Korean government has been trying to reorganize and reform the chaebols, the core content of which includes breaking the chaebol family control, selling off non-core companies, and implementing specialized operations.

However, since the revolution, the chaebol is still powerful, and the internal inheritance of the corporate family has not been broken.

　　In addition, Li Jianxi, the eldest daughter of Li Jianxi, who was dubbed by the media as the "Samsung Princess", is also a strong contender for the successor of the consortium.

　　In 2010, Li Fuzhen was promoted to the head of Shilla Hotel and Samsung Everland, and therefore became the first female president of Samsung's subsidiaries.

In 2015, Li Fuzhen was also appointed as an independent director by China CITIC Corporation (CITIC).

　　Although Li Fuzhen’s marriage with ordinary employees has been called “dazzled by love” by the outside world, personal prestige has declined. This fairy-tale love story between rich daughters and poor boys, and finally divorce proceedings in 2019, the division of high-priced property .

　　Now that Lee Jae-yong himself is only in his early 50s and has no retirement plan, it is hard to imagine the situation of Samsung Group, South Korea and the world when he "abides".

In the future, Samsung may still be in charge of the Li family.

　　China News Weekly, Issue 40, 2020

Statement: The publication of "China News Weekly" manuscript is authorized in writing