Lee Kun-hee, Korean icon who transformed Samsung, passes away at 78

News Network
October 25, 2020

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Lee Kun-hee, who transformed Samsung Electronics Co. from a copycat South Korean appliance maker into the world’s biggest producer of smartphones, televisions and memory chips, has died. He was 78.

Lee passed away on Sunday with his family by his side, the company said in a statement, without mentioning the cause of death. His family will hold a private funeral. He had surgery in 2014 after a heart attack and was treated for lung cancer in the late 1990s.

Lee, who told employees to “change everything except your wife and children” during his drive to foster innovation and challenge rivals such as Sony Corp., was South Korea’s richest person. He had an estimated net worth of $20.7 billion, according to the Bloomberg Billionaires Index. Samsung, the biggest of South Korea’s family-run industrial groups, known as chaebol, has been led by his only son since the heart attack.

“Chairman Lee was a true visionary who transformed Samsung into the world-leading innovator and industrial powerhouse from a local business,” the company said. “His legacy will be everlasting.”

The reins are now set to pass to his only son Jay Y. Lee, who’s been the conglomerate’s de facto leader since his father’s hospitalization in 2014. Lee is expected to eventually inherit a $300 billion company that’s riding a Covid-era boom in online activity. Samsung, the maker of the Galaxy line of smartphones, also supplies semiconductors for Google’s data centers and Apple Inc.’s iPhone. It’s the world’s most advanced maker of displays for TVs, computers and mobile devices.

The younger Lee is currently grappling with two simultaneous legal disputes with South Korean prosecutors over allegations of bribery and corruption, which he’s repeatedly denied.

Lee Kun-hee’s heirs now face an estate tax of roughly $10 billion, and paying it may complicate the family’s control of the Samsung conglomerate -- his beneficiaries would likely have to sell some assets to cover the tax — diluting their stake in Samsung. South Korea’s levy of 50% on estates of more than 3 billion won ($2.6 million) is the second-highest among countries in the Organization for Economic Cooperation and Development, after Japan.

The Samsung empire includes 62 companies. Although the late Lee owned large chunks of some of the businesses — including 4.2% of Samsung Electronics — they’re not big enough to afford control of the conglomerate. The family depends on informal ties to executives who run related companies, and a lot of that soft power may dissipate with Lee’s death.

Global Powerhouse

It was Lee Kun-Hee who built the company into the electronics powerhouse of today, becoming synonymous with the rise of South Korea on a global economic stage.

Named one of the world’s 100 most influential people by Time magazine in 2005, Lee began overhauling Samsung Electronics after he saw the company’s products gathering dust in a Los Angeles electronics store, according to “The Lee Kun Hee Story,” a 2010 biography by Lee Kyung-sik. The Suwon, South Korea-based company had become known for cheap, low-quality electronics gear and was in the “second phase of cancer,” sending out 6,000 people to fix products made by 30,000 employees, Lee said in 1993, according to the biography.

Why Samsung’s Billionaire Scion Faces Two More Trials: QuickTake

The company’s makeover started in 1993 when Lee gathered top executives in Germany and laid out a plan, known as the Frankfurt Declaration, to transform Samsung from a second-tier television maker into an industry leader. The company’s new mission: create high-quality products, even if it meant lower sales.

Samsung Electronics became the world’s top maker of computer memory chips in 1992, the same year it became the first to develop 64-megabyte DRAM chips, according to the company.

Samsung’s Origins

Lee was born on Jan. 9, 1942, in Daegu about 240 kilometers (150 miles) south of Seoul, and was raised in the nearby rural district of Uiryeong, according to the company.

In 1938, his father Lee Byung-chull opened a four-story grocery store in Daegu that would later become Samsung Group.

As a teenager, Lee Kun-Hee liked movies and cars and kept to himself. He took up wrestling and played rugby in high school to fight loneliness. He graduated with a degree in economics from Waseda University in Tokyo and also studied business administration in the U.S. at George Washington University in Washington.

In 1971, Lee Byung-chull chose his youngest son to be his successor, and in 1974, the company moved into semiconductors when it acquired a 50% stake in unprofitable Hankook Semiconductor. The business turned profitable in 1988, helped by dynamic random-access memory chips it produced.

After the Frankfurt Declaration, Lee required employees to arrive at work at 7 a.m. instead of their usual 8:30 a.m. start, so they could “soak up reform in their slumber,” according to the biography.

In 1995, he assembled 2,000 workers to watch him make a bonfire out of 150,000 mobile phones, fax machines and other company products that didn’t meet his quality standards.

Lee’s cultural change eventually produced results. Samsung Electronics surpassed Tokyo-based Sony to become the top seller of flat-screen TVs in 2006, the same year its market value exceeded $100 billion.

In 2010, Samsung introduced the Galaxy-branded smartphone running Alphabet Inc.’s Android software, which helped it pass Apple as the world’s biggest smartphone maker in 2011 in terms of units sold. By introducing the Galaxy Note in 2011, Samsung created a new product niche known as the phablet, a smartphone-tablet hybrid.

Political Controversy

Samsung became the biggest seller of all mobile phones in 2012, unseating Nokia Oyj, which had been the industry leader for more than a decade. Its success in smartphones then boosted profits at its component businesses, including memory chips, display and processors.

Lee’s career was also notable for its setbacks and controversies. An expansion into the car business was unsuccessful. Samsung Motor Inc. rolled out its first automobiles in 1998 and failed to attract buyers. The unit was placed into receivership and Renault SA purchased a majority stake in 2000.

Lee was mired in political scandals in the late 1990s after being convicted of paying bribes to former president Roh Tae-woo in 1996. He was pardoned by President Kim Young-sam a year later.

In 2009, Lee was found guilty of tax evasion and breach of duty for causing losses at Samsung SDS Co., an information technology services provider, because he knew the company illegally sold bonds with warrants to his son at artificially low prices. He was fined 110 billion won and received a suspended three-year jail sentence.

Presidential Pardon

Four months after the 2009 ruling, South Korea’s then-President Lee Myung-bak pardoned Lee, a member of the International Olympic Committee, so he could help the country’s successful bid to host the 2018 Winter Olympics in Pyeongchang.

Lee, who resigned from the board of Samsung Electronics in 2008 amid the controversies, returned as chairman in March 2010, telling employees the business was “facing a real crisis.”

“In 10 years, the majority of products that represent Samsung may no longer exist,” he said in a statement announcing his return. “We must have a new start. There is no time to hesitate.”

Two months later, Samsung Group said it would invest 23 trillion won to expand in areas such as health care and solar batteries by 2020.

Lee’s son, Jay Y. Lee, became vice chairman of Samsung Electronics in December 2012 and his daughter, Lee Boo-jin, is president of Hotel Shilla Co., a Samsung affiliate, raising concerns that the founding family would maintain its grip on the conglomerate at the expense of minority shareholders. That issue lies at the heart of the two legal disputes the younger Lee is now embroiled in.

In August 2019, the Supreme Court ordered the retrial of Jay Y. Lee over bribery charges that voided an earlier decision to suspend Lee’s 2.5-year prison sentence. A special prosecutor had indicted the Samsung heir on charges of bribing a friend of former President Park Geun-hye in return for government backing for a merger that helped cement his control over Samsung while his father was hospitalized.

In 1967, Lee Kun-hee married Hong Ra-hee. In addition to children Jay Y. and Boo-jin, he had a daughter, Lee Seo-hyun. Another daughter, Lee Yoon-hyung, died in 2005 at age 26.

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News Network
January 23,2025

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Mangaluru, Jan 23: A unisex salon in the city was targeted by miscreants belonging to a Hindutva organization, who accused the salon of unethical activities. 

The activists vandalized the salon named 'Colors' near KSRTC in Bejai, Mangaluru, causing extensive damage by destroying furniture and shattering glass.

The group demanded the immediate closure of all massage centers within Mangaluru city, alleging improper conduct at such establishments. 

Following home minister G Parameshwara’s direction to immediately take action against those who are responsible for the attack, the City Crime Branch (CCB) police arrested Prasad Attavar, the leader of the Rama Sene.

Authorities have charged Attavar and are investigating the incident further. This event has raised concerns about the increase in vigilante actions, with local authorities urging the public to respect legal processes and maintain calm. The salon owner has filed a complaint seeking justice for the damages incurred.

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News Network
January 24,2025

Bengaluru, Jan 24: The BJP has sparked controversy by opposing a meeting between Muslim community leaders and Karnataka Chief Minister Siddaramaiah, where increased budgetary allocations for minorities were discussed. The BJP labeled the demands as "religion-based budgeting," accusing the Congress-led government of minority appeasement.

Amit Malviya, head of the BJP’s National Information and Technology Department, claimed on social media platform X, “This kind of Muslim assertion and religion-based demands led to India’s partition along religious lines in 1947. We can’t afford it again.”

The meeting, attended by Ministers Rahim Khan, Zameer Ahmed Khan, and Siddaramaiah's Political Secretary Naseer Ahmed, focused on enhanced funding for minority welfare. Malviya criticized it as a "brazen display of minority appeasement," alleging that the Congress was catering to its vote bank in return for support.

The Congress government allocated Rs 3,000 crore for minority welfare in its 2024-25 State Budget, drawing fire from opposition parties. However, Deputy Chief Minister D.K. Shivakumar defended the allocation, stating, “In a Rs 3.71 lakh crore budget, can’t we allocate even 1 per cent for Muslims? This funding supports schools and development programs. What’s wrong with that?”

Meanwhile, BJP and JD(S) leaders accused the Congress government of sidelining Hindus while failing to address pressing issues like rising crime and fiscal mismanagement. Karnataka Leader of the Opposition R. Ashoka criticized the government for planning to borrow Rs 1 lakh crore to fund its "five guarantee" schemes and other initiatives, questioning the state's development progress.

Chief Minister Siddaramaiah is set to present the 2025-26 State Budget in March, which is expected to cross Rs 4 lakh crore, marking his 16th budget as Finance Minister. The Congress government faces growing opposition from BJP leaders, who claim its policies prioritize appeasement over governance.

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News Network
January 19,2025

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The planned ceasefire agreement between the Palestinian Hamas resistance group and Israel has taken effect after deadly strikes by the usurping regime on the Gaza Strip.

The truce deal was set to begin at 8:30 a.m. local time (06:30 GMT) on Sunday to end the 15-month-long Israeli genocidal war on the besieged territory but was delayed for almost three hours. It finally went into effect at 11:15 a.m. local time.

Earlier in the day, the Israeli military said that it continued to carry out attacks on Gaza as Hamas had not provided a list of captives to be released under the ceasefire.

Israeli army spokesman Rear Admiral Daniel Hagari said in a televised statement that the regime’s military “continues to strike within the Gaza area at this time. According to the prime minister’s directives, the ceasefire will not come into effect until Hamas fulfills its commitments.”

He echoed an earlier statement from prime minister Benjamin Netanyahu, who ordered the occupation’s military not to implement the Gaza truce until Hamas issues the names of the Israeli captives to be released.

Meanwhile, Hamas said the delay in handing over the names of the captives is due to “technical and field reasons.”

In a statement issued on Telegram, the resistance group reaffirmed its commitment to the terms of the ceasefire agreement.

Afterwards, Hamas provided a list of the three Israeli captives to be freed later on Sunday.

13 Palestinians killed during ceasefire delay

Gaza’s Civil Defense said 13 people have been killed and more than 30 others injured in the Israeli bombing of Gaza on Sunday morning during the nearly three-hour delay in the start of the ceasefire.

Gaza’s Government Media Office announced that it had begun deploying thousands of Palestinian police officers tasked with maintaining security and order in the blockaded territory.

“Ministries and government institutions are fully prepared to begin work according to the government plan [and] to implement all measures that ensure life returns to normal as soon as possible,” it added.

Israel unleashed its brutal Gaza onslaught on October 7, 2023, after Hamas carried out a historic operation against the occupying entity in retaliation for its intensified atrocities against the Palestinian people.

However, the Tel Aviv regime failed to achieve its declared objectives of freeing captives and eliminating Hamas despite killing nearly 47,000 Palestinians, mostly women and children, in Gaza.

Earlier this week, Israel was forced to agree to a ceasefire, accepting Hamas' longstanding negotiation terms.

The ceasefire deal consists of three phases, each lasting 42 days. Negotiations for the second and third phases will begin 16 days after the implementation of the first phase. 

The first phase will see the release of some 1,900 Palestinian abductees in exchange for 33 Israeli captives held in Gaza. It also requires Israeli occupation forces to begin withdrawing from the Philadelphi corridor - also known as the Salah al-Din axis - on the Gaza-Egypt border.

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