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

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

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15 Comments

1. RaKithAPeiRiZ

Posts: 1488; Member since: Dec 29, 2011

some family huh ?

2. SleepingOz unregistered

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

7. cezarepc

Posts: 718; Member since: Nov 23, 2012

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

8. Tre-Nitty

Posts: 470; Member since: Nov 16, 2010

Classic response. That's hilarious!

3. wildcard

Posts: 65; Member since: Jan 15, 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

14. Mittal

Posts: 494; Member since: Dec 14, 2011

Private companies are started with a money motive only

4. _Bone_

Posts: 2155; Member since: Oct 29, 2012

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

13. JosDes

Posts: 5; Member since: Jan 26, 2013

how about apple

5. ray77

Posts: 126; Member since: Nov 17, 2012

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

6. tiara6918

Posts: 2262; Member since: Apr 26, 2012

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

9. kaliil10

Posts: 146; Member since: May 16, 2012

I hate family problems

10. Commentator

Posts: 3722; Member since: Aug 16, 2011

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

11. ibap

Posts: 865; Member since: Sep 09, 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.

12. MorePhonesThanNeeded

Posts: 645; Member since: Oct 23, 2011

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

15. laheelahee

Posts: 213; Member since: Apr 09, 2012

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

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