Samsung heir says he will not hand over management to his children

Samsung’s de facto CEO Lee Jae Young says he won’t hand over company to his kids.

Samsung vice chairman, Samsung billionaire, son of the former chairman Lee Kun Hee, made this statement at a press conference in Seoul on Wednesday.

«I do not plan to pass on my role to my children.», – told reporters Lee Jae Young.

«This is what I thought about for a long time, but did not dare to speak out openly. This was not only due to difficulties in the business environment, but I felt that it would be irresponsible to talk about issues of succession", – he added. His father was left incapacitated as a result of a heart attack in 2014..

Samsung is the largest conglomerate in South Korea. Its combined ventures are estimated to account for about 15% of the country’s total economy. Samsung Electronics, a large part of the group, is the world’s leading smartphone manufacturer and an important supplier of memory chips and monitors..

Lee, who was jailed in 2017 after what many called «test of the century», also apologized for his mistakes in managing the company. He was convicted of bribery related to the succession of the company and the fall of the former president of South Korea Park Geun Hye.

Lee admitted on Wednesday that Samsung «sometimes could not meet the expectations of society». He voiced some of the controversies the company has faced in recent years, including union formation disputes, as well as his own criminal case..

«It was my fault, ”Lee said. – I sincerely apologize».

Samsung's heir won't hand over the company to his kids

Executive comments come after Samsung’s Independent Compliance Committee advised Lee to apologize for succession and labor relations.

Although Lee was released from prison in 2018, his case rocked South Korea for months. It was part of a huge scandal surrounding the resignation of former President Pak’s government..

Last August, South Korea’s supreme court ordered a re-examination of Lee’s case, reopening the case and expressing fears that the heir to the tech empire could be returned to prison..

Lee’s comments come a few days after Samsung warned investors about the growing problems in its business..

The company last week reported revenue and operating profit growth for the first quarter of the year, but also warned that the coming months will be painful as the coronavirus pandemic disrupts global supply chains, hurts smartphone demand and complicates 5G adoption..

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