Samsung brand in store in Shanghai. A South Korean multinational conglomerate.
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SINGAPORE – Shares of Samsung Electronics and its associates rose Monday morning after Chairman Lee Kun-hee handed away the day earlier than.
Samsung shares rose 0.66% as of 10:18 a.m. HK / SIN. Shares of Samsung C&T rose 17.31%, Samsung SDS 8.12%, Samsung Life Insurance coverage 5.86%, Samsung BioLogics 0.47%, and Samsung Engineering 0.45%.
The corporate introduced that 78-year-old Lee died on Sunday after a coronary heart assault after six years in hospital. His household, together with his son, Vice Chairman Jay Y. Lee, was by his facet, in keeping with the corporate assertion.
Senior Lee was credited with making Samsung a worldwide know-how and industrial powerhouse. He took over in 1987 after the loss of life of his father Lee Byung-chul, who based the conglomerate.
Lee had beforehand been convicted of bribes and tax evasion and was pardoned on each events.
“His legacy will final without end,” Samsung stated in a press release.
After Lee’s well being issues in 2014, his son Jay Y. Lee turned the de facto chief of Samsung.
“Now the market is within the implications of the Jay Y. Lee succession,” SK Kim, govt director and analyst at Daiwa Securities, instructed CNBCs. “Road signs Asia. “
“He is the de facto leader of the Samsung group,” said Kim on Monday. “He is a major shareholder in Samsung C&T and Samsung SDS, so the market responded positively to the news.”
Jay Y. Lee, co-vice chairman of the Samsung Electronics Center, wears a protective mask as he is surrounded by media representatives at Seoul Central District Court in Seoul, South Korea on Monday, June 8, 2020.
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Going forward, Samsung could take aggressive action to ensure long-term growth momentum and, according to Kim, consider further improving shareholder returns. He expects Samsung Electronics to see strong profits in 2021, driven by the storage business and increasing adoption of 5G mobile technology, the next generation of high-speed mobile internet that is expected to offer faster data speeds and greater bandwidth.
However, uncertainties about Jay Y. Lee as a potential successor remain due to his ongoing legal problems.
The younger Lee was in jail after being convicted of paying bribes to obtain government favors and the scandal sparked the impeachment of former President Park Geun-hye. The case, which is on appeal, is reportedly set to resume on Monday.
He is also charged with accounting fraud and manipulation of stock prices, according to Reuters. The process for this started this month.
President Moon Jae-in recognized the elderly Lee for his role in developing the semiconductor sector into an important industry for South Korea and for helping Samsung become a leader in the global smartphone market. Yonhap News reported. “Because the face of the Korean economic system, Samsung has led the way in which in rising our economic system,” Moon was quoted as saying.
Samsung is South Korea’s largest chaebol – or giant, family-run conglomerate that has traditionally performed an vital position within the nation’s financial growth. Chaebols management giant company networks by way of a round holding construction, and their management often exceeds money movement rights, which signifies that households, regardless of small direct holdings, typically exert undue affect over group corporations.
The elder Lee was the richest stockholder in South Korea, in keeping with Reuters. In keeping with the information company, he held 4.18% of the frequent inventory of Samsung Electronics and 0.08% of the popular inventory, valued at round 15 trillion gained ($ 13.three billion). In keeping with Reuters, on the shut of buying and selling on Friday, it had a 20.76% stake in Samsung Life valued at round 2.6 trillion gained and a pair of.88% in Samsung C&T valued at round 564 billion gained.
The entire income of Samsung and its subsidiaries was round 17% of South Korean GDP in 2019.
Whereas conglomerates like Samsung have been liable for financial progress in South Korea previously, many voters have lengthy known as for political authorities to curtail their energy.