Dormant Samsung rouses Seoul’s other giants

Seoul’s sleepier giants are stirring. Samsung has dominated Korea Inc for years, but is now in disarray. Third-generation heir Jay Y Lee is off the board of the conglomerate’s flagship $288 billion electronics business, and faces more jail time. At rival SK Group and autos empire Hyundai, though, bosses are charging ahead with self-driving tech and other ventures. On Friday, a sombre Lee was back in court. The 51-year-old scion was convicted for graft and other charges in 2017 and jailed, but he was unexpectedly freed last year when a lower court halved and suspended his sentence.

The Supreme Court in August overturned that decision, and the retrial could put the billionaire in prison again. A final conclusion to the saga could take months.

Lee’s troubles will prolong uncertainty that is already threatening to damage a sprawling empire. Its crown jewel, Samsung Electronics, is grappling with a semiconductors downturn, global trade ructions, and a battered economy at home. Though that company is run by a trio of veterans sharing the chief executive title, future growth and strategy is effectively down to Lee. On Saturday, his board term expired, and the company has since replaced him as vice chairman. If he remains active behind the scenes, that will raise governance concerns and make matters worse.

Meanwhile, lesser-known peers are stepping into the limelight. Chey Tae-won, who heads the telecoms-to-chemicals SK Group, has set his sights on promising areas like next-generation wireless technology and biotech.

The cash-rich group has been acquisitive: recent investments include US drug ingredient maker AMPAC Fine Chemicals, a stake in Vietnamese conglomerate Vingroup, and in Horizon Robotics, a Chinese artificial intelligence chip specialist.

Hyundai Group’s ambitious third-generation heir is in even better position to pull ahead. Earlier this month, Euisun Chung’s conglomerate unveiled a plan to invest $35 billion in self-driving cars and other auto tech through 2025. With government backing, it also plans to offer fully autonomous driving systems to taxi fleets and rival automakers in three years.

Such bold bets look unthinkable for a leaderless Samsung, which now risks falling behind as others tackle fast-moving and fiercely competitive new technologies. A shakeup looks likely in the pecking order of Korea Inc.

JAY Y LEE IS OFF THE BOARD OF THE CONGLOMERATE’S FLAGSHIP $288BN ELECTRONICS BUSINESS, AND FACES MORE JAIL TIME