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Arrested Development: Samsung chairman relatives fail in a $4 billion lawsuit against him

Posted: , by Daniel P.

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Arrested Development: Samsung chairman relatives fail in a $4 billion lawsuit against him
Samsung's esteemed chairman Lee-kun Hee is overseeing a multibillion empire, which he's been creating for decades now, but when it comes to relatives getting in the way, all bets are off, even in a family-run chaebol like Samsung.

Lee Kun-hee's siblings filed a lawsuit demanding more shares in the company, as heirs of Samsung's founder in their turn, while Lee's lawyers argued that his father named him a successor, and he was the one who turned the relatively small company to the world-class conglomerate it is now.

The plaintiffs were seeking about $4 billion in shares from the various company holdings, but the South Korean court just ruled today in Lee Kun-hee favor, avoiding a wave of disturbance and reshuffling going through the intricate network of shareholder layers around the group's numerous businesses.

Arrested Development: Samsung chairman relatives fail in a $4 billion lawsuit against him
It all ends up at Samsung Life insurance and Samsung Everland, which is on paper a zoo and amusement park operator, but in fact owns a large chunk of shares in Samsung Group, while Lee Kun-hee controls both companies with the family stake in them. His personal fortune is estimated at more than $8 billion, so giving away half of that to the relatives would have been a bitter pill to swallow.

"Regardless of the truth of what happened or the final outcome of this case, I think it may also have been one of the late founder's wishes that both parties have a happy life together with no quarrels," said the judge before the verdict.

The ruling comes at a time when South Korea is a bit fed up with family-run chaebols that rule the country, and is ultimately deemed positive for Samsung, as its shares shot up 3% on the news. Check out how Samsung rose to a chaebol prominence for more info on the company culture.

source: Reuters

15 Comments
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posted on 01 Feb 2013, 07:07 3

1. RaKithAPeiRiZ (Posts: 1362; Member since: 29 Dec 2011)


some family huh ?

posted on 01 Feb 2013, 07:13 5

2. SleepingOz (unregistered)


Money ruins families, it's a well known fact.

posted on 01 Feb 2013, 08:42 5

7. cezarepc (Posts: 577; Member since: 23 Nov 2012)


It's the other way around for my family, they ruin money.

posted on 01 Feb 2013, 08:57

8. Tre-Nitty (Posts: 460; Member since: 16 Nov 2010)


Classic response. That's hilarious!

posted on 01 Feb 2013, 07:24 4

3. wildcard (Posts: 65; Member since: 15 Jan 2013)


all about is money, money. their donot think about the company there only think about is what there want in their pocket an l call that greed

posted on 02 Feb 2013, 02:42

14. Mittal (Posts: 429; Member since: 14 Dec 2011)


Private companies are started with a money motive only

posted on 01 Feb 2013, 07:24

4. _Bone_ (Posts: 2136; Member since: 29 Oct 2012)


Nobody can win a lawsuit against Samsung. Not even Samsung itself.

posted on 02 Feb 2013, 01:44

13. JosDes (Posts: 5; Member since: 26 Jan 2013)


how about apple

posted on 01 Feb 2013, 07:29 7

5. ray77 (Posts: 121; Member since: 17 Nov 2012)


well it look like that there is a rotten apple in the family

posted on 01 Feb 2013, 07:43 3

6. tiara6918 (Posts: 1452; Member since: 26 Apr 2012)


It must be painful on Lee Kun Hee's part for being sued by his own siblings:(

posted on 01 Feb 2013, 09:27

9. kaliil10 (Posts: 145; Member since: 16 May 2012)


I hate family problems

posted on 01 Feb 2013, 10:34

10. Commentator (Posts: 2438; Member since: 16 Aug 2011)


This seems like a pretty good problem to have...

posted on 01 Feb 2013, 11:57

11. ibap (Posts: 703; Member since: 09 Sep 2009)


Let's see. How differently will he live worth 4 billion instead of 8?

OTOH - it doesn't say what the others are worth without this deal either.

posted on 01 Feb 2013, 14:26

12. MorePhonesThanNeeded (Posts: 635; Member since: 23 Oct 2011)


Classic entitlement case here folks...they probably did nothing to help and want their share.

posted on 02 Feb 2013, 15:14

15. laheelahee (Posts: 213; Member since: 09 Apr 2012)


typo: Lee-kun Hee @ the 1st sentence.
correct: Lee, Kun-hee @ the rest of the article is fine.

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