Health of Samsung exec raises concern
Chairman, 72, suffers heart attack but is making a recovery.
The chairman of Samsung is in recovery after suffering a heart attack, and questions are being raised about the future leadership of the South Korean electronics giant.
In an official statement Samsung confirmed chairman Lee Kun-hee, 72, was rushed to hospital over the weekend and treated with CPR. Samsung said Lee “is in stable condition and making a recovery.” Both the company and hospital officials have declined to say how long he is expected to be hospitalized.
Samsung has a major presence in Austin, having created one of the biggest chip manufacturing complexes in North America here, with at least $15 billion in new investment. The company employs about 2,600 people in Central Texas and produces, among other things, advanced low-pow- er processors that are used in mobile devices such as phones and tablets.
While he has not directly overseen many of Samsung’s products, including its popular smartphones, Lee is credited with shaping Samsung into one of the most profitable consumer electronics companies in the world. The company is a leader in smartphones and flat-screen televisions, as well as semiconductors and washing machines.
Lee has previously been treated for lung cancer and pneumonia, and his latest health problem will almost certainly renew calls for a concrete succession plan. His son, Lee Jae-yong, who served as the company’s chief oper-
ating officer until 2012 and is now the Samsung’s vice chairman, is widely expected to eventually take over from his father.
Samsung Electronics Co. has a top-heavy command structure that centers on the founding family. Lee Kun-hee is the third son of Samsung founder Lee Byung-chull and was tapped in 1979 by his father to lead what would become South Korea’s most valuable company — a global leader in smartphones, TVs, household appliances and home entertainment systems. The conglomerate also owns businesses in life insurance, hotel, construction, shipbuilding, chemical industry, fashion, credit card and other areas.
The company’s business operations are run by three CEOs, though Lee Kun-hee as the head of the flagship electronics division wields significant control over the company’s direction.
The Samsung Group has recently been carrying out a broad range of mergers and reorganizations in what analysts say are preparations for handing over the reins to Lee’s three children — a son and two daughters.
While not unexpected, Lee Kun-hee’s fading health comes at a crucial time for Samsung. The company finds itself at a crossroads where its smartphone sales are leveling off, it is embroiled in legal battles with Apple Inc. and its early moves into wearables like the Galaxy Gear 2 have so far been a critical and commercial failure.