6/19/2014

Samsung's Shareholdings Explained by Wall Street Journal

Mr. Lee Kun Hee, the Chairman of Samsung, was hospitalized, last month, reportedly from a heart attack.  His death or total incapacitation may be imminent.

A few commentators have noted that Samsung's stock value may increase in value because of, inter alia, increased transparency within the Samsung family of companies.

The Wall Street Journal has posted an interesting article, today, that details the present corporate structure of Samsung group.  

Unlike typical corporations throughout the world, the Samsung conglomerate (Chaebol) has a unique ownership structure. Lee’s family only owns 4.7% of Samsung Electronics’ shares, however, they control the company by owning other Samsung companies that have shareholdings in Samsung Electronics.  The below chart is a great representation of the reality.  

The following chart appeared in the Wall Street Journal and may be found at:  Samsung Restructuring Could Offer Opportunities.


More to come on the Samsung saga in the near future.
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Sean Hayes may be contacted at: SeanHayes@ipglegal.com.

Sean Hayes is co-chair of the Korea Practice Team at IPG Legal. He is the first non-Korean attorney to have worked for the Korean court system (Constitutional Court of Korea) and one of the first non-Koreans to be a regular member of a Korean law faculty. He is ranked, for Korea, as one of only two non-Korean attorneys as a Top Attorney by AsiaLaw.