Among the corporate success stories in South Korea over the last 50 years, Samsung Electronics dominates. When Koreans travel the world, many express pride at the sight of billboards advertising the company’s flat-screen televisions, mobile phones and household appliances.
South Korean president, Roh Moo-Hyun, has even said that Samsung, not he, is the real representative of South Korea abroad, according to members of his political party.
But at home, the Samsung group of companies, controlled by the family of Lee Kun-Hee, the chairman of Samsung Electronics, faces growing criticism of its ownership and control arrangements, as well as its handling of a looming generational change. Legislators, regulators and advocates of shareholder rights are questioning the financial structure that links Samsung’s 61 affiliates and are trying to gain some influence over how the company is controlled and eventually will be passed on to Lee’s son, Lee Jay-Yong.
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